Bunge buys 30% of Brazil agricultural inputs reseller
Bunge announced an agreement to buy 30% of Agrofel Grãos e Insumos, an agricultural inputs reseller in Rio Grande do Sul, Brazil. 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.
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.
“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.
In the first half of 2019, Bunge received USD 259 mln of net revenue vs. USD 33 mln loss in 2018.