Thursday, May 15, 2014

Morning chat with Yara Fertilizer dealer

It has been a tough transition for my buddy that used to sell fertilizer for Bunge.

Since the Yara merger, there have been many changes.

Supervisor and personel changes that have not been beneficial.

His old supervisor was put in charge of fertilizer sales to Sugarcane mills.
Thus, taking all his old clients.

Yara sends in a new young hot shot with an attitude problem to be his new boss.
The young buck calls his old soybean clients and sells fertilizer direct to them at
a price R$ 90/ton less than my buddy even knew was possible.

Problem: Young buck sells fertilizer on the cheap and forgets to tell the
client that the fertilizer must be taken now. The client assumes he could take
delivery in August like he always has. Tempers begin to flare-
A new soap opera starts.

Yara has taken a large percentage of regional fertilizer market this season.

Off topic comments:

Kory, there is something funny in the air in Brazil this time. It has me worried.
You have not experienced this in the 10 years you have been here.

Take a look around Kory. Look at the amount of crime. Look at the number
of thefts. Look at the number of stikes going on in the country. It is like a fuse
has been lit. But we don´t know what is on the other end?

The stealing continues on government projects. The World Cup is a mess.
God forbid Brazil does not win the World Cup. The population will burn
the country to the ground. It is good you will be in USA he says.

Combine all of this with what we know. Inflation, high interest rates,
increasing the minimum stipen for the family purse(welfare), election,
Petrobras economics that make no sense, and a middle class that continues
to pay more taxes and sees little in return. The health system is on verge
of collapse and yet all people worry about is how to buy a ticket for the
final match of World Cup valued at R$15,000- R$ 20,000/ seat.
In some cases higher.

For the first time in a long time, this all has me worried. It is different
this time he says. It smells different.

There is something in the wind..........

Enjoy the show,

all for now