BrasilAgro

In view of the coronavirus pandemic, according to the WHO (World Health Organization) decree, BrasilAgro has established a Prevention and Risk Committee to assess the situation and inform about preventive measures and actions that ensure the health and safety of our employees and suppliers.

In addition to establishing the Prevention and Risk Committee, other main actions already in place were the implementation of home-based work routine and the adoption of several measures and protocols to ensure the safety of everyone involved in the company’s operations, following the guidelines determined by the Ministry of Health. Also, to support our operations and preserve cash flow, the following measures have been taken:

opening new credit lines and re-evaluating expected investments;

early delivery of inputs;

anticipated sale of agricultural products to ensure the company has a greater storage capacity.

In 2020, BrasilAgro (Brazil) and Palmeiras (Paraguay) donated more than 5 tons of food and cleaning supplies to the population surrounding the farms. We engaged our in-house employees as well as local social security and health departments in this initiative to help distributing the items. All food and cleaning products have been purchased in local stores in the cities where the initiatives took place, boosting and strengthening local markets.

For the headquarters, BrasilAgro’s contingency plan has been developed based on protocols and phased reopening schedule according to the set of measures developed by the government of the State of São Paulo:

Red Phase
100% of corporate level staff working from home.

Orange Phase
Employees can choose to work from home or at the office, respecting the maximum limit of 20% of the employees present at the office. Working hours at the office is reduced to four straight hours, from 10:00 a.m. to 2:00 p.m., avoiding rush hour, to protect employees who rely on public transportation.

Yellow Phase
Employees can choose to work from home or at the office, respecting the maximum limit of 40% of the employees present at the office.

Green Phase
50% of every department’s teams working at the office, with a weekly schedule, respecting the maximum limit of 40% of employees present at the office.

For operational units, a series of other measures have been implemented, such as:

• Access control with screening and body temperature measuring;
• Scheduled use of the cafeteria and common areas;
• Cleaning of machines and vehicles;
• Testing to enter the units, among others.

Up to the publication of this report, almost 7.14% of our staff had been diagnosed with Covid-19 and have recovered, without severe cases.

Although we have not recorded any material losses or gains in our 2020 financial result directly related to the pandemic, we continue to monitor possible future impacts due to:

• Exchange rate volatility, considering that the Company, seeking to ensure production margins in its financial operations, has suffered a temporary setback.
• Volatility in sugarcane and ethanol prices and the subsequent impact in sugarcane demand and prices: sugarcane revenue was 20.2% up year-on-year and 3.7% down quarter-on-quarter. The quarterly decline has mainly been due to the negative variation in Consecana’s prices in April and May, compared to the previous year. For June and July, however, Consecana’s prices have been in line with those of the previous year.
• Changes to the expected payment cycle related to sugarcane supply arising from negotiations with our clients: up to June 2020, none of the clients has delayed any payments.
• Volatility of other commodities prices.
• In Paraguay, meat packing houses have been shut down to contain the pandemic spread. Between March and June 2020, we did not record the expected revenue, but products are still in inventory. The unrecorded amount in the period (R$3.1 million) is not deemed relevant to the Company.

The planning and beginning of the 2020/2021 harvest year took into consideration available market conditions and attention aspects have been constantly monitored.

Check out the CEO’s message

In every stage of the pandemic, the Company has kept an ongoing and active communication through its institutional channels and published notices to the market to monitor its activities. Watch below the message from BrasilAgro’s CEO, André Guillaumon: