The Brazilian agribusiness giant Amaggi announced an investment of approximately R$ 2.3 billion in works and acquisitions in 2021. The strategy comes in the wake of strong investments made recently by its main competitors, the Chinese Cofco and the North American Cargill.
According to Amaggi, the objective is to consolidate its position on several fronts, with investments in the areas of agricultural production, logistics, biodiesel production, energy, fertilizers and grain origination. “Part of the projects is already underway. This is one of the most important volumes of investment ever made by the company in just one year”, emphasizes the company.
At the same time that it invests heavily, Amaggi projects sales in the order of R$ 44.2 billion for this year. “Through the announced investments, the company hopes to further increase the synergy of its operations on various business fronts and continue to reinforce the basis for its long-term sustainable growth,” says the company in a statement.
Amaggi reveals that it will install three new industrial plants, two of which will be fertilizer mixing plants – in Porto Velho (RO), with works already underway (and which also include a rear warehouse), and in Sinop (MT), with works still to come. start. Both fertilizer plants should meet, with simple and compound products, the demand of rural producers of the most diverse cultures in the surroundings of the units.
The third industrial plant will be a plant for the production of biodiesel, in Lucas do Rio Verde (MT), with works already underway, right next to the grain processing plant maintained by Amaggi in the municipality for over ten years in operation.
In the logistics sector, the company announces an increase in the road fleet to 800 vehicles, in addition to having a new base for logistics operations in the municipality of Vilhena, in Rondônia. Another investment announced by Amaggi for 2021 is the increase in the company’s total storage capacity – from 2.6 million to 2.85 million tons of grain – with new warehouses distributed throughout the country’s producing regions.
On the agricultural production front, the investments consist of the acquisition – already announced and approved without restrictions by the Administrative Council for Economic Defense (Cade) in March – of the assets of the O Telhar Agro Group in Brazil, all located in Mato Grosso (farms in Alto Paraguai , Campo Novo do Parecis, Nova Ubiratã, Novo Santo Antônio, Primavera do Leste, Rondonópolis and Santo Antônio do Leste).
The investment should increase AMAGGI’s agricultural production capacity (for grains and fibers) by approximately 34%, based on the addition of 62 thousand hectares to the total productive area that the company will have for the first and second harvests, reaching almost 350 thousand acre.