In order to produce an area important enough to decrease impact per hectare in fixed costs, to improve input purchase, to commercialize the product and to get access to specific technical advice, the company designed the Shared Plantings program.
This program consists on associated production between land owners, input providers and agricultural services providers, grain brokers, companies that consume cereals (amongst other companies in the sector).
Its development and implementation enables to fit together the needs of the different actors of the agricultural production change, being the following the main goals to reach:
- To share business risk between associates
- To reduce competitiveness and rivalry between peers.
- To increase efficiency and scale of production.
- To stabilize growth of every associate through time.
Throughout the years the planting system managed to consolidate as a scheme in where its associates cover each link of the agro-productive chain.
- Land owner
- Input providers
- Seed companies
- Agricultural services providers
- Complementary services providers (Insurance company, brokers, etc.)
- Private Institutions
Leading companies of the sector are committed to this project y show it by contributing not only capital (inputs, services, etc.) but also developing and testing new technologies.
One of the main goals of the project is for all parties involved to gain advantages through the association.
- Generating strategic long term alliances, looking for steady growth over time.
- Using new technology
- Increasing contractors work capacity
- Helping field owners and service providers to take part in the productive business
- Looking for reliable and profitable businesses
The share plantings system functions through capital contribution from Berardo Agropecuaria and its Associates to produce a specific crop. This crop has a cost structure that is covered with the contribution of different associates. These contributions will determine a participation percentage of the crop. Once harvested, the remaining product is distributed according to the participation percentage of each associate.
According to the needs of each associate, the Share Planting system provides different contractual arrangements.
The investment by the associate consists in contribute a certain amount of money destined to the chosen field/s. At the end of the campaign, Berardo Agropecuaria delivers the amount of money equivalent to the initial contribution plus an interest rate, which is the producer of the profitability obtained by the share planting.
The investment by the associate in this type of contract consists in input, services and land contribution, which are taken as contributions to the chosen field/s.
At the end of the campaign, Berardo Agropecuaria delivers the grains to the associate in according to its participation so then they can commercialize their own production.
Having fields available allows the associate to access an amount of hectares of specific characteristics. This lets the associate to adjust the production and growing plan according to its needs or demands. Another important factor that Berardo Agropecuaria counts on is the knowledge of the production areas, allowing advantages when hiring quality services in a timely manner.
One or more lands
With this option the associate selects the fields by its own criteria.
The selected fields are selected by Berardo Agropecuaria and the associate given consideration of its location within the productivity areas.
In this case, the profitability of the associate is bounded to the profitability of the chosen fields.
With this investment option what is sought is to minimize production and climate risks.
The contribution of the associate is destined to all fields the company produces in the different production areas. In this way, the associate’s profitability proceeds from the total profitability of the fields produced by Berardo Agropecuaria.
To achieve steady growth through time is fundamental to narrow the inherent risks to the
business. This can be achieved by agricultural insurances.
In this manner, in the Share Planting system the associates have a Special Agricultural Insurance, which has as a general characteristic to prevent risks of frosts, hailstones, fire, etc.
To these general characteristics some special characteristics are added:
All expenses for reseeding, excessive rainfall production, frosts and hailstones are covered.
The lots are assured with a floor yield. The insurance covers any event (lack of floor, excessive water, etc.) that may affect the crop and may cause the final yield to fall down the floor yield. In this case the insurance is activated, covering the gap between the real yield and the floor yield.
To have insurance with this characteristics helps making the right decision by the time of crop planting and harvesting planning.
Plus, Berardo Agropecuaria has a civilian responsibility that covers any accident that may involve a third party as long as they occur within the extents of the lands produced by the Company or its associates.