Sowing Seeds of Agreement: A Negotiation Case in the Brazilian Citrus Industry

Abstract

This case study looks at a difficult bargain between a citrus seedling provider (seller) and a rural producer (buyer) in Brazil. The parties signed a contract for the purchase and sale of 112,000 citrus seedlings worth $344,000 (R$ 1,750,000.00, approximately), with payment in 14 monthly installments. However, the buyer defaulted on payments, leading to a critical juncture in the contractual relationship. As the parties sit down to renegotiate, their interests diverge: the seller seeks to deliver all seedlings and receive payment, preferably in cash or reduced installments, while the buyer aims to pay the debt in installments and resume the supply of seedlings. The outcome of this negotiation remains uncertain, raising questions about the parties' ability to find a mutually beneficial agreement. What strategies will they employ to resolve this? This case highlights the importance of flexibility, collaboration, and understanding the interests of both parties in achieving a successful negotiation.