SÃO PAULO, BRAZIL — Bunge is acquiring a 30% stake in a Brazilian-grain sourcing business, Agrofel Grains and Inputs.
Agrofel’s business focuses on 15,000 farmers supported by 38 units, including warehouses and stores, with a combined capacity of 450,000 tonnes and 470 employees. Founded in Palmeira das Missões, Rio Grande do Sul, Agrofuel works with seeds, fertilizers, plant nutrition, pesticides, receiving, buying, selling, exchanging and storing grain.
“Combining Agrofel’s broad relationship and expertise with local producers with our logistical management and existing origination capacity in Brazil is ideal for us to increase our origination capillarity in one of the most relevant soybean growing states,” said Raúl Padilla, president of Bunge Global Operations.
Bunge said the deal is a part of its strategy to strengthen its grain foothold in Brazil. Agrofuel operations includes sourcing more than one million tonnes of grain annually, including soybeans, corn and wheat.
“We share the same values and principles focused on ethics and sustainable production and believe that this transaction maximizes opportunities for both companies to expand their operations in Rio Grande do Sul,” said Wilson Ferrarin, chairman of the board of Agrofel. “Bunge has experience in risk management and complete logistics capacity and relying on this expertise puts us on another level in the country's grain market.”