With the growth of production, the unit price of electronic ear tags is expected to fall, enabling more farmers to adopt of the product.
Getting your products into market
The market for such products is still very high and companies are unprofessional. One of the factors for success is to have a good distribution network, either through dealers or resellers of the company itself.
Partnerships with companies with complementary products are also advisable, such as software companies.
Regulations
It is useful to consult the services of a customs broker or freight forwarder.
Goods and services tax (ICMS) is applied to the cost, insurance and freight value of imported goods, plus corresponding duties, at a rate of between 17-19 percent.
Non-tariff Barriers
- Electronic Identification imports are subject to concurrence of the Ministry of Development, Industry and Foreign Trade (MAPA)
Normative statement 17 – 06/13/2006.
- The elements of electronic identification must be registered in the BND (National Database), and its correlation with a SISBOV number code.
Opportunities
The market is controlled by a few companies, although it is not a consolidated market. Every company is likely to grow. The companies are mostly small and do not offer a complete package of services to producers, such as specific software.
Brazilian cattle farmers are in cultural transition, where the livestock production is starting to be seen as a professional activity requiring high performance.
Challenges
It is important to be able to prove the long term financial benefits of using a five-time more expensive technology.
Improvement is also needed in the sales system. Another challenge is that the Electronic Identification market in Brazil is very small, which increases competition in the sector. It is also difficult to access distribution channels.
