Profile: Adecoagro SA (AGRO.N)
Adecoagro S.A., incorporated on June 17, 2010, is a holding company primarily engaged through its operating subsidiaries in agricultural and agro-industrial activities. The Company is involved in a range of businesses, including farming crops and other agricultural products, dairy operations, sugar, ethanol and energy production and land transformation. The Company is organized into three main lines of business: farming; land transformation, and sugar, ethanol and energy. Its agricultural activities consist of harvesting certain agricultural products, including crops (soybeans, corn and wheat), rough rice and sugarcane, for sale to third parties and for internal use as inputs in its various manufacturing processes, and producing raw milk. The Company's manufacturing activities consist of selling manufactured products, including processed rice, sugar, ethanol and energy, among others, and providing services, such as grain warehousing and conditioning and handling and drying services, among others. Its land transformation activities consist of the acquisition of farmlands or businesses with underdeveloped or underutilized agricultural land and implementing production technology and agricultural practices to enhance yields and increase the value of the land.
The Company owns a total of approximately 246,130 hectares, consisting of over 20 farms in Argentina, 10 farms in Brazil and one farm in Uruguay. In addition, the Company owns and operates agro-industrial production facilities, including over three rice processing facilities in Argentina, approximately two dairy facilities with approximately 6,750 milking cows in Argentina, over 10 grain and rice conditioning and storage plants in Argentina, and approximately three sugar and ethanol mills in Brazil with a sugarcane crushing capacity of over 10.2 million tons.
The Farming business consists of four segments: Crops, Rice, Dairy, and All Other Segments. The Crops segment consists of planting, harvesting and sale of grains, oilseeds and fibers (including wheat, corn, soybeans, cotton and sunflowers, among others), and to a lesser extent the provision of grain warehousing/conditioning and handling and drying services to third parties. In Argentina, its farming activities are conducted mainly in the Argentine humid pampas region. It is also engaged in the production of forage in Argentina, including corn silage, wheat silage, soybean silage and alfalfa silage. The Rice segment consists of planting, harvesting, processing and marketing of rice. The Company produces different types of white and brown rice that are sold both in the domestic Argentine retail market and exported. The Dairy segment consists of the production and sale of raw milk and other dairy products. The Company produces approximately 88.6 million liters of raw milk, with a daily average of over 6,650 milking cows, delivering an average of approximately 36.4 liters of milk per cow per day. The All Other Segments business consists of leasing pasture land to cattle farmers in Argentina and leasing its coffee plantation in the Rio de Janeiro farm, located in Western Bahia, Brazil, to a third party. The Company leases over 33,300 hectares of pasture land, which is not suitable for crop production to third party cattle farmers.
Sugar, Ethanol and Energy
The Sugar, Ethanol and Energy business consists of cultivating sugarcane, which is processed in owned sugar mills, transformed into ethanol, sugar and electricity and marketed. The Company owns and operates over three sugar and ethanol mills with a total crushing capacity of approximately 10.2 million tons of sugarcane per year. The Company's overall sugarcane plantation consists of approximately 125,670 hectares of sugarcane in the states of Mato Grosso do Sul and Minas Gerais, Brazil, of which over 9,740 hectares of sugarcane were planted on owned land, and approximately 116,520 hectares were planted on land leased from third parties under long-term agreements.
The Land Transformation business comprises the identification and acquisition of underdeveloped and undermanaged farmland businesses and realization of value through the disposition of assets (generating profits). Its land transformation model consists of changing the use of underutilized or undermanaged agricultural land to agricultural activities, such as turning low cash-yielding cattle pasture land into high cash-yielding croppable land, allowing profitable agricultural activities, such as crop, rice and sugarcane production. The Company's land portfolio consists of approximately 249,500 hectares.
The Company competes with SLC Agricola S.A., BrasilAgro - Companhia Brasileira de Propriedades Agricolas, Sollus Agricola, Radar Propriedades Agricolas, El Tejar S.A., Cresud SACIF y A, MSU S.A., Los Grobo Agropecuaria, Molinos Rio de la Plata S.A., Dos Hermanos S.H., Sagemuller S.A., Cooperativa Arroceros Villa Elisa Ltda., Cosan Ltd., Grupo Sao Martinho S.A., Acucar Guarani S.A., Louis Dreyfus Commodities Brasil S.A., ETH Bioenergia S.A., Bunge, Grupo Zillo Lorenzetti, Grupo Carlos Lyra S.A. and Grupo Irmaos Biaggi.
Vertigo Naos BLDG, 6 Rue Eugene
Company Web Links
- BRIEF-Adecoagro SA qtrly net income of $3.8 million, $21.6 million higher than Q2 2016
- BRIEF-Adecoagro SA Q1 net income $6 mln
- BRIEF-Bienville Capital Management, LLC reports 5.38 percent passive stake in Adecoagro
- Argentina trade restrictions harm sugar industry development: Adecoagro CEO
- BRIEF-Adecoagro reports fourth quarter 2016 results