AMAGGI acquires ‘O Telhar Agro’ Group and increases production capacity by 34%
AMAGGI signed last Friday (5) a contract to acquire the ‘O Telhar Agro’ Group in Brazil. With this, AMAGGI should incorporate circa 62 thousand hectares in production areas within 14 farms, increasing its grains and fibers production capacity by approximately 34%. The ‘O Telhar Agro’ Group operates in Brazil in the State of Mato Grosso, producing soybeans, corn, and cotton.
“This is an important step, which will certainly consolidate our position as one of the largest producing companies in the country”, declared AMAGGI’s CEO, Judiney Carvalho.
Among the assets acquired from ‘O Telhar’, which employs circa 900 employees, are more than 34 thousand hectares of production areas on company-owned farms and over 28 thousand hectares on leased areas. Two of the units also have circa 900 hectares dedicated to livestock (feedlot).
“Today, we have 259 thousand hectares of productive areas, taking into consideration the 1st and 2nd harvests. With this acquisition, we will be able to increase our annual grain and fiber capacity by approximately 34%, considering both harvests, reaching nearly 350 thousand hectares”, calculates the CEO.
Some of these farms have storage structures and cotton processing plants. In addition, the company-owned farms have over 10,000 hectares of legal reserve, with native vegetation and preserved natural resources. The farms are located in the Mato Grosso municipalities of Alto Paraguai, Campo Novo do Parecis, Nova Ubiratã, Novo Santo Antônio, Primavera do Leste, Rondonópolis and Santo Antônio do Leste.
“With this acquisition, we are expanding our agricultural production to five other municipalities – Alto Paraguai, Nova Ubiratã, Novo Santo Antônio, Primavera do Leste and Santo Antônio do Leste – thus expanding our presence in the state that is the largest grain producer in the country. In addition, it is a synergy gain, as we are starting operations with agricultural production in regions where AMAGGI already operates in grain commercialization, including storage, logistics, and industrial assets – such as the grain crushing plant and the new biodiesel plant, the latter scheduled to start operating in 2022, both in Lucas do Rio Verde”, highlighted Judiney Carvalho.
The acquisition of the ‘O Telhar’ Group’s assets in Brazil also opens an opportunity for AMAGGI to expand its participation in the soybean market with socio-environmental certification. To this end, the farms included in the scope of the negotiation will undergo adaptations to meet the AMAGGI production, governance, and socio-environmental management requirements, as well as other possible certifications, such ProTerra (dedicated to non-transgenic soybeans) and RTRS (Round Table on Responsible Soy). This way, AMAGGI consolidates its leadership in the certified soy market, in which it is already responsible for circa 30% of the world’s volume.
“We expect and aim to deliver even more certified volumes to the market. This type of production is zero deforestation, traceable, and audited with socio-environmental criteria that are stricter than the sector’s legislation. With this, we seek to meet the current desires of consumers in several countries that rely on Brazilian agriculture”, says the CEO.
The completion of the ‘O Telhar’ Group assets acquisition in Brazil is subject to the approval of the Brazilian competition authorities, according to the country’s antitrust law.