Driving Financial Excellence In Agribusiness Growth

Maximiliano Proano is the Senior Director of Finance at Pronaca, bringing close to two decades of experience in corporate finance, treasury, and strategic financial management. With a background in Economics and Finance, he specializes in capital markets, risk management, and financial planning, driving sustainable growth and financial excellence in the agribusiness sector

In an exclusive interview with Agri Business Review, Proaño shared his views on financial investments and the risks associated with the agriculture sector

1.Could you please provide a brief overview of your professional background, and your current role and responsibilities at Pronaca?

I have a background in Economics and Finance and began my career as a bank trader. I later transitioned to a corporate role as a Treasury Manager. I have been with PRONACA in Ecuador for nearly 17 years, starting as a Treasury Manager and evolving to Corporate Treasurer. Over the years, I have taken on additional responsibilities, including taxes, working capital management, and commodity risk management. Currently, I oversee all financial operations, planning and budgeting, treasury and taxes, strategic finance, accounting, and internal control.

2.Companies that establish a strong presence in local capital markets often gain a competitive edge in securing funding. What key financial strategies can organizations adopt to strengthen their position in capital markets and optimize financing costs?

• Securing funding involves a broader strategy aimed at diversifying sources of funding, including entering local capital markets. Success in local capital markets requires maintaining a solid financial position, avoiding excessive financial leverage, and ensuring a steady cash flow.

• After establishing a strong presence in local capital markets, focus on identifying key recurrent buyers and understanding their reasons for purchasing your issuance. Continuously analyze market trends related to rates and ensure your rate strategy aligns with your risk profile. Consistency in your strategy, even during market turmoil, will build market trust.

3.Interest rate arbitrage can be a valuable tool for taking advantage of market inefficiencies. How can finance professionals identify and execute such opportunities while managing associated risks?

A diversified funding strategy positions you well to identify arbitrage opportunities. Being well-versed in financial markets and having a robust risk management structure is crucial for managing associated risks.

4.Mergers and acquisitions are often seen as growth accelerators, but they come with inherent financial risks. What due diligence practices do you recommend for assessing the financial viability of M&A opportunities, and how can companies ensure seamless post-merger integration?

An essential aspect of due diligence is involving your entire finance team in evaluating the target's financial processes. This significantly reduces the likelihood of post-deal surprises.

5.Building a high-performance finance team requires strong leadership and a clear vision. What leadership strategies do you consider most effective for developing finance teams that can navigate challenges and drive business success?

The main recommendations are:

Identify the technical and managerial capabilities of each team member to ensure successful specialization. Align responsibilities with individual motivations. Create common working spaces where team members can learn from each other and understand how their work fits into the company's overall strategy. These spaces also foster a sense of ownership among team members.

6.What key strategies would you suggest to young professionals, navigating the complexities associated with agribusiness for better business growth and success?

Agribusiness is a fascinating field that combines livestock, manufacturing, and financial management. Young professionals should learn the business from the ground up, starting with operations such as growing chickens, cows, or pigs. Understanding conversion rates and cost structures is critical for analyzing competitiveness and business profitability.