Determinants of Buying Behavior of Grain Producers: A Multiple Case Study with Mid and Large Size Producers in the State of Mato Grosso

Abstract

In recent years, Brazilian agribusiness has demanded for inputs, capital goods, financial services and technology. In addition, there have been changes in the size of the properties, as well as in risk management and commercialization practices, and level of education and posture of those responsible for the decision making of agricultural enterprises. It is fundamental for companies that supply inputs and services to farmers to understand some variables in such changing environment, considering that they influence the business model and the buying behavior of rural producers. The purpose of this study is to develop knowledge and familiarity with the buying behavior of grain farmers in the State of Mato Grosso, with the intent of understanding how this behavior can be influenced by theproducer's profile and the farm features, as well as the risk and business management practices, the decision making, the sources of information, and the products and suppliers. In order to achieve such a goal,a multiple case study was developed by interviewing, face to face, three grain producers, from the State of Mato Grosso. The results demonstrate that the most influential determinants on the buying behavior of the interviewed producers were their level of involvement in the decision making process, the benefit they expect from each type of product, the size of their farming operation, the kind of yield production, and the crop rotation and its relation to productivity. Additionally, the ownership or not of the land, the business profitability, credit restrictions and risk management, they all influence the level of the producer's capitalization and consequently his choices of channels for acquiring inputs and capital goods. Last, though not less important, the sources of information and their reliability have an impact on the producer's loyalty to a brand, or to a local distributor or to a salesperson.