Brazilian Agribusiness Giant Amaggi Heavily Invests to Compete With China and the U.S.

Amaggi Will Build Three New Industrial Plants, Two Fertilizer Blending Plants and One Biodiesel Production Plant

The Brazilian agribusiness giant Amaggi announced an investment of approximately R$ 2.3 billion in construction and acquisitions in 2021. The strategy follows the strong investments recently made by its main competitors, the Chinese Cofco and the American Cargill.

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According to Amaggi, the goal is to consolidate its position across various areas of operation, with investments in agricultural production, logistics, biodiesel production, energy, fertilizers, and grain sourcing. “Part of the projects is already underway. This represents one of the largest volumes of investment ever made by the company in just one year,” the company emphasizes.

Amaggi Projects Revenue of R$ 44.2 Billion for 2021

At the same time it invests heavily, Amaggi projects revenue of R$ 44.2 billion for this year. “Through the announced investments, the company expects to further enhance the synergy of its operations across various business fronts and continue strengthening the foundation for its long-term sustainable growth,” the company stated in a press release.

Amaggi reveals that it will install three new industrial plants, two of which will be fertilizer blending plants – in Porto Velho (RO), with construction already started (which also includes a backup warehouse), and in Sinop (MT), with construction yet to begin. Both fertilizer plants are expected to meet the demand of rural producers from various crops in the vicinity of the units with simple and compound products.

The third industrial plant will be a biodiesel production factory in Lucas do Rio Verde (MT), with construction already underway, right next to the grain processing plant maintained by Amaggi in the municipality for over ten years.

Amaggi Invests in Logistics and Expands Truck Fleet to 800 Vehicles

In the logistics sector, the company announces an increase in its truck fleet to 800 vehicles, as well as a new base for logistics operations in the municipality of Vilhena, Rondônia. Another investment announced by Amaggi for 2021 is the increase of the company’s total storage capacity – from 2.6 million to 2.85 million tons of grain – with new warehouses distributed across producing regions of the country.

In terms of agricultural production, the investments consist of the acquisition – already announced and approved without restrictions by the Administrative Council for Economic Defense (Cade) in March – of the assets of the Grupo O Telhar Agro in Brazil, all located in Mato Grosso (farms in Alto Paraguai, Campo Novo do Parecis, Nova Ubiratã, Novo Santo Antônio, Primavera do Leste, Rondonópolis, and Santo Antônio do Leste).

The investment is expected to increase Amaggi’s agricultural production capacity (for grains and fibers) by approximately 34%, based on the addition of 62,000 hectares to the total productive area that the company will hold for first and second crops, reaching nearly 350,000 hectares.