US agribusiness Bunge has agreed to buy 30% of Brazilian agricultural firm Agrofel Grãos e Insumos, based in Rio Grande do Sul state.
Agrofel receives and stores soyabeans, corn, wheat and grains, as well as selling seeds, fertilisers and pesticides to farmers.
Bunge said on 12 September that the investment aligned with its strategy to focus on its core businesses, thus strengthening its grain origination position in Brazil.
Agrofel sourced more than 1M tonnes of grain annually, including soyabeans, corn and wheat, from some 15,000 farmers, Bunge said. The firm is supported by 38 units, including warehouses and shops, with a combined static capacity of almost 450,000 tonnes.
“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 capabilities with farmers in of one of the most important soyabean growing states,” said Raúl Padilla, president of Bunge’s global operations.
The acquisition is subject to approval by the Brazilian Antitrust Authority (CADE).