Currently, family succession is one of the most discussed themes of the agriculture industry in the world. One of the challenges of agricultural properties is the lack of interest of young people in remaining in the activity, contributing to the so called rural exodus. According to the Serviço Brasileiro de Apoio às Micro e Pequenas Empresas
In the rural environment, according to Empresa Brasileira de Pesquisa Agropecuária [Brazilian Agricultural Research Corporation] (Embrapa), until 2030 approximately 40% of farmers will leave their activities. In the municipalities where family agriculture is well developed, there is also more economic development as a result of their ability to generate income continuously, in relation to the agricultural employers that characterize labor by crops. In addition to compromising the offer of agricultural products, producers’ increasing age brackets and the absence of successors in the business generate problems in managing the activity. For example, the problems to obtain credit, mainly for investments, are characterized by longer periods of time to acquire new machinery and equipment.
In view of the above, one of the challenges usually faced by family businesses resides in managing succession and inserting their children and the new generation in company management. There are constant failures in the transmission process between the generation that is currently managing the business and the generation that will manage the business in the future. The founder should begin the succession process, but in the rural area this decision is almost always delayed, and usually happens abruptly, with the original manager’s death or illness. Therefore, family discussions on company continuity occur at a time of strong emotions, consequently not always the best options are chosen, and there is even a movement to the contrary, in which senior family heads encourage their children to study far away from the farms, for them not to continue working in the fields.
The main element to successfully reach family succession is to maintain the population in the fields. To this end, it is necessary to increase growers’ income, in addition to improve distribution, promote more social and gender fairness and improve the quality of life also become part of a possible strategy. In the succession process, it is important to consider the managing family’s values, the reality in which they are and the present values, as well as life expectations of the members who are active managers. The succession in family management is critical to the success and continuity of an organization, since the process intervenes directly in the business and is capable of defining the company stability, growth, or downfall.
The succession process planning may result in advantages for the family organization. With the arrival of a new generation in the company, innovation tends to prosper and the fear of running risks tends to diminish. For that, the search for a new entrepreneur profile aligned with the family values can create organization innovation within family companies.
Heirs have to be prepared for the succession process, so that their expectations are met, because continuous motivation is a key factor for the second generation to lead the business. Therefore, we arrive at the conclusion that the generation that follows in managing the family business needs to be well trained, based on entrepreneurship education and has to be motivated to become part of the managing process.
The Brazilian coffee exportation industry has focused directly in Social Responsibility and Sustainability actions during the last 15 years. In this sense, Cecafe has acted to strengthen actions in coffee regions, with important results that guide Brazilian coffee production to an even more sustainable future.
In 2017, Cecafe created the Polo Café Sustentável [Sustainable Coffee Center], based on the renewal and integration of the traditional programs such as Criança do Café na Escola [Coffee Farms Children in School], Digital Coffee Farmer Program and Café Seguro [Safe Coffee], focused on individuals involved in the coffee productive chain, such as children, young adults, farmers, men and women. The Center aims at developing good practices, family succession, digital inclusion, sustainability, gender equality and other subjects that are of interest for the specific region.
The majority of youngsters choose to leave rural areas to look for better work conditions in the big cities. In view of this, the challenge to suggest actions for young people to see opportunities in rural areas, with quality of life and income as an encouragement for them to continue producing coffee with quality and sustainability. Actions and partnerships proposed by Cecafe are aimed at training youngsters to be entrepreneurs/managers of their properties, demonstrating the importance of sustainable coffee-growing, through the adoption of good agricultural practices and technologies, to build a harmonious and healthy environment for family succession.
Among the proposed actions are the specialized courses aimed at entrepreneurship education, guidance and qualification, computer science classes, technology and sustainability, through workshops. Such content may encompass the following speakers: young successor who was successful in managing a farm; Sebrae consultants talking about management, governance, business plan and succession process; agronomists and technicians discussing good practices and how to comply with regulations and legislation; demonstrative field day. The purpose of the above-mentioned initiatives is to collaborate in the integral development of youngsters, stimulating young adults’ leadership, to create awareness, motivate and prepare them for the challenges of coffee-growing globally, instigating them to identify opportunities and to plan their future through entrepreneurship attitudes.
Marcos Matos – General Manager – CECAFE
Marjorie Miranda – Social Responsibility and Sustainability Coordinator – CECAFE
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