Bunge Acquires Stake in Agricultural Inputs Reseller

September 13, 2019

2 Min Read
Bunge Acquires Stake in Agricultural Inputs Reseller

Agribusiness Bunge entered into an agreement to acquire 30% of Agrofel Grãos e Insumos, a agricultural inputs reseller based in Rio Grande do Sul, Brazil, enabling the American company to expand its grain origination presence in the South American country, the firm announced in a release Thursday.

“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 one of the most important soybean growing states,” Raúl Padilla, president of Bunge Global Operations, said in a statement.

Agrofel’s 38 units, including warehouses and shops, have a combined static capacity of about 450,000 tn and employ some 470 workers. In operation for more than four decades, the Brazilian company sources over 1 million tn/yr of soybeans, wheat, and corn from local producers. Other firms owned by Agrofel’s parent company, Ferrarin Group, were not part of the transaction. 

“We share the same values and principles in terms of ethics and sustainable production, and we believe this transaction will maximize opportunities for both companies to expand their business in Rio Grande do Sul,” the chairman of Agrofel’s board, Wilson Ferrarin, said in the release. “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.”

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