Supplier costs in seed companies: an exploratory study in Rondonópolis, Mato Grosso

Abstract

This study analyzes supplier-cost management practices in seed companies located in Rondonópolis, Mato Grosso, Brazil. The exploratory research combined qualitative and quantitative evidence from a questionnaire, semi-structured interviews, and document analysis. To ensure internal consistency, the article uses the available firm-level dataset for ten companies, although other sections of the source monograph report conflicting sample sizes. The sample comprises four large, four medium-sized, and two small companies; five produce soybean seeds, three corn seeds, and two bean seeds. Companies work with an average of 13.7 suppliers and report average annual supplier expenditure of BRL 3.69 million, with a median of BRL 3.15 million. Average reported profitability was 11.4%. Absolute supplier expenditure was strongly negatively correlated with profitability (r = -0.955), but this exploratory association does not establish causality and may reflect company size, scale, and seed type. Strict quality criteria, price negotiation, supplier monitoring, and long-term contracts were reported by 90%, 80%, 70%, and 60% of firms, respectively. Only 30% reported using activity-based costing. Supplier management is relevant to performance, but causal assessment requires a confirmed sample, normalized cost measures, and longitudinal evidence.