Profile: Cresud SACIF y A (CRESY.O)
20 Dec 2013
Cresud Inc. (Cresud), incorporated on Febraury 19, 1937, is an Argentina-based company. Cresud is engaged in the production of basic agricultural commodities with a presence in the agricultural sector of Brazil, through its investment in BrasilAgro-Companhia Brasileira de Propriedades Agricolas (BrasilAgro), as well as in other Latin American countries. The Company is involved in activities, including crop production, beef cattle raising and milk production. It focuses on the acquisition, development and exploitation of agricultural properties prospects for agricultural production. The Company is directly engaged in the Argentine real estate business through its subsidiary IRSA Inversiones y Representaciones Sociedad Anonima (IRSA). IRSA is engaged in the development, acquisition and operation of shopping centers, premium offices, and luxury hotels in Argentina, as well as the development of residential properties.
As of June 30, 2012, the Company owned 33 farms with approximately 645,815 hectares distributed in Argentina, Brazil, Bolivia and Paraguay. Approximately 185,925 hectares of the land it owns are used for crop production, approximately 83,360 hectares are for beef cattle production, 85,000 hectares are for sheep production, 3,022 hectares are for milk production and approximately 11,748 hectares are leased from third parties for crop and cattle beef production. The remaining 350,362 hectares of land reserve are primarily natural woodlands. In addition, it has the rights to hold approximately 132,000 hectares of land under concession for a 35-year period that can be extended for another 29 years. Out of this total, it has developed 22,383 hectares for crop production. During the fiscal year ended June 30, 2012 (fiscal 2012), it leased 42,515 hectares from third parties for crop production and 12,635 hectares for beef cattle production. During fiscal 2012, it conducted its operations on 33 owned farms and 71 leased farms.
The Company’s crop production is based on grains and oilseeds and sugarcane. Its crop production includes wheat, corn, soybean and sunflower. Other crops, such as sorghum, are sown occasionally. Out of the total production of 1,182,249 tons recorded during fiscal 2012, the crop farms located in Argentina contributed 385,739 tons, the crop farms located in Brazil contributed 732,967 tons (including sugarcane), the farms located in Bolivia contributed 58,280 tons and the farms located in Paraguay contributed 5,262 tons. As of June 30, 2012, its crop stocks consisted in 6,350 tons of wheat, 86,297 tons of corn, 45,009 tons of soybean, 2,581 tons of sorghum, 3,501 tons of sunflower and 45,819 tons of sugarcane. As of June 30, 2012, the surface area of leased land was 26% of the total sown land.
Beef Cattle Production
The Company’s beef cattle production involves the breeding and fattening of its own animals. It also purchases and fattens cattle, which it sells to slaughterhouses and supermarkets. As of June 2012, its beef cattle aggregated 59,435 heads, and it had a total surface area of 83,360 hectares of this business activity. During fiscal 2012, its beef cattle representing 12% of its total consolidated sales, and its production was 9,000 tons. Its cattle breeding activities are carried out with breeding cows and bulls and its fattening activities apply to steer, heifers and calves.
As of June 30, 2012, the Company conducted its milk business in the dairy facility located in El Tigre farm in La Pampa, Argentina. It has a capacity of 2,600 cows in milking per day. Its milk production is based on a herd of Holando Argentina dairy cows, genetically selected through the use of imported frozen semen of North American Holando bulls. Male calves are sold, at calving, for a given amount per head, whereas female calves are weaned after 24 hours, spend approximately 60 days in raising and approximately 100 days being fed on the basis of grass, grains and supplements. Young heifers then graze for an additional 12 to 15 month period, prior to artificial insemination at the age of 18 to 20 months and they calve nine months later. Heifers are subsequently milked for an average of 300 days. Milking dairy cows are once again inseminated during the 60 to 90 day subsequent period. This process is repeated once a year during six or seven years. As of June 30, 2012, it had 6,184 heads of cattle on 3,022 hectares to milk production.
Cresud SACIF y A
Edificio Intercontinental Plaza
Piso 23, Calle Moreno, N 877
BUENOS AIRES C1091AAQ
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