Estimating the potential market is difficult as the use of electronic weigh scales is associated with the farmer’s culture of using technology.
For example, a small farm with a herd of 20 units does not have the same animal handling equipment as a large farm with a herd of 2,000 units.
Growth in the market is influenced mainly by the growth of cattle herd, Brazilian GDP, and consumption of beef products.
Getting your product into market
The electronic weigh scales market is dominated by three large companies; Coimma, Beckhauser and Romancini.
The market is highly consolidated, which makes entry difficult. Good relationships with sales representatives are vital.
Opportunities
There is opportunity for a service company- a joint venture with interested suppliers from New Zealand.
Alternatively a New Zealand company could analyse the opportunity to acquire a small company - Valfran, for instance. This may enable it to achieve the initial production capacity and gather a top-notch sales representative force.
Challenges
Barriers are high because it is a consolidating market, established in the maturity curve of the life cycle.
New Zealand companies should address these points in order to succeed in the Brazilian market:
- Channel access
- A strong brand
- After sales services and relationship programs
- Access to capital
- Local manufacturing
- Production scale
- Full product line
- Product registration
- Intensity of competition
- Utilisation rate.
