Sep 12, 2019

Bunge announces agreement to buy 30% of Agrofel and increases its origination capacity in Rio Grande do Sul state

 

Transaction still to be approved by the Brazilian Antitrust Authority (CADE) will increase capillarity with farmers in the region

São Paulo, September 12, 2019 – Bunge, one of Brazil’s leading agribusiness and food companies, announced an agreement to buy 30% of Agrofel Grãos e Insumos, an agricultural inputs reseller in Rio Grande do Sul. The investment is aligned with Bunge’s strategy to focus on its core businesses, thus strengthening its grain origination position in Brazil. 

“Combining Agrofel´s broad relationship and expertise with local farmers and our logistics and existing origination capabilities in Brazil will be ideal for us to increase our origination capillarity with farmers in of one of the most important soybean growing states,” said Raúl Padilla, Bunge’s Global Operations, President.

Agrofel has operated for 42 years, and now has its origination strategy aimed at 15,000 farmers, supported by 38 units, including warehouses and shops, with combined static capacity of almost 450,000 tons, in addition to 470 professionals. The reseller sources more than one million tons of grains annually, including soybeans, corn and wheat. The other companies of Ferrarin Group are not part of the deal. 

For Agrofel, the merger results from a partnership based on trust. “We share the same values and principles in terms of ethics and sustainable production, and we believe that this transaction will maximize opportunities for both companies to expand their business in Rio Grande do Sul”, said Wilson Ferrarin, Agrofel’s Board Chairman. “Bunge is experienced in risk management and has full logistic capacity, and counting on that expertise takes us to the next level in Brazil’s grains market”, said Ferrarin.