Bolivian cement producer Fancesa is changing its sales policy. The company will no longer sell exclusively through its authorised agencies, according to Correo del Sur.
At present, almost all of the company’s sales in Sucre, Potosí and Tarija are made through authorised agencies. In Santa Cruz, Fancesa cement is sold through the company, agencies and hardware stores while in La Paz, El Alto and Oruro sales are made directly by the cement company.
In the so-called “free sale of cement” anyone who has “infrastructure” to protect the product can potentially sell cement. The applicant must request authorisation by letter and make a cash payment before authorisation is granted.
The company is bracing itself for a forecast 25 per cent drop in demand when compared to last year. The new sales policy targets sales of an additional 5m bags to the forecast 8m bag direct sales.
While shareholders did not oppose the new strategy, they recommended that a market study be carried out to identify the pricing policy to make Fancesa cement more competitive.
