Brazilian soyabean leader Amaggi Group and global trading giant Louis Dreyfus Co are selling a 33% stake in their Brazilian joint venture to Japan’s Zen-Noh Grain Brazil, making Zen-Noh an equal partner in the venture, Global AgInvesting reported on 17 January.
The Amaggi & LD Commodities joint venture was formed in 2009 to originate soyabeans and corn, finance farmers, and sell seeds, fertilisers, and agrochemicals in the Brazilian ‘Matopiba’ in the states of Bahia, Maranhão, Piauí and Tocantins.
The companies were aiming to capitalize on Louis Dreyfus’s trading experience with Amaggi’s expertise in production and logistics.
The joint venture also holds a 25% stake in the Tegram grain terminal at the Itaqui port in Maranhão, northern Brazil. The remaining 75% in the terminal, currently under development, is controlled by Switzerland’s Glencore Plc and Brazil’s NovaAgri and CGG Trading according to Reuters.
The terminal would have a handling capacity of 5M tonnes/year of soyabeans and corn, Global AgInvesting said. It was 2,500 miles closer to the Panama Canal than Santos – Brazil’s top port – giving it a geographic advantage for grain shipments to Asia.
Zen-Noh Grain Brazil is a subsidiary of Japan’s Zen-Noh Grain Corp, a subsidiary of Zen-Noh, one of the largest agricultural cooperatives in the world.
Zen-Noh exports about 13M tonnes of grain and soyabeans through its elevators in the Gulf region of the USA and has consolidated revenue of more than US$50.5bn through its supplying and marketing of agricultural products, according to Global AgInvesting.
“With this incorporation, the joint venture will be able to count on the experience of one of the world’s leading cooperatives, which will contribute to operations in one of the most promising grain producing regions in Brazil,” Louis Dreyfus said. “It will also strengthen the partnership in Tegram, a port that represents one of the main alternatives to the export routes of the country’s south and southeast regions.”