About Brazilian agribusiness: SLC Agrícola (SLCE3) announced this Thursday, the 23rd, that its wholly-owned subsidiary Fazenda Paysandu Empreendimentos Agrícolas entered into an agreement to acquire 12.473,88 hectares of arable land in Bahia.
The value of the transaction was R$470 million, of which R$55,1 million were allocated to existing improvements on the land. The price per arable hectare corresponds to R$ 33.262,60. This acquisition reinforces SLC Agrícola's presence in the Brazilian agribusiness and consolidates its investments in the region.
With this acquisition, the company established its position as leader in cotton production in Brazil, together with the acquired improvements, which include a cotton plant with a capacity of 750 bales of lint/day and silos with 9.000 tons of storage capacity.
SLC Agrícola stated that this acquisition will allow the company to expand its business in the coming years and optimize production processes throughout the agro-industrial chain. The director of SLC Agrícola declared: “We are very excited about the acquisition of these lands and we believe that they will be essential for our operations in the near future”.
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This acquisition was carried out after months of discussions between both parties involved and passed through the scrutiny of the competent authorities to guarantee the legality of the process. Now, SLC Agrícola has great expectations of prosperity thanks to its expansion in the Brazilian agribusiness.
Agricultural SLC
SLC Agrícola, a company founded in 1977 by the SLC Group, became a reference in the agricultural sector by being one of the first companies to have its shares traded on the Stock Exchange. Headquartered in Porto Alegre and with 23 production units spread across seven Brazilian states, the company has established itself as a world leader in efficiency in the agricultural business.
To achieve this objective, SLC Agrícola adopts a hybrid business model comprising three main approaches: Asset Light Business Model, Maximization of Asset Use and Own Land Use. These practices allow the company to achieve organic growth through productivity, in addition to acquisitions and leasing of mature farms to maximize results.
However, the company also invests in Crop-Livestock Integration (ILP), which allows it to produce a “third crop”, thus generating a more stable environment for the soil. Second crop cultivation also contributes to a more rational use of production factors, with lower production costs.
These investments not only aim to obtain economically viable sustainable results, but also to preserve the environment. Therefore, the company maintains its commitment to the planet and future generations, seeking to have a positive impact through its work. Therefore, it believes that those who are passionate about what they do are committed and can produce services of superior quality. This stance has been recognized with lasting and ethical relationships between all parties interested in SLC Agrícola's processes.
As a result, the company has been conquering more and more space in the agribusiness Brazilian, having planted 672,4 thousand hectares in the 2021/2022 harvest. This year promises to bring even more advances to SLC Agrícola, which remains firm in the search for an increasingly modern and sustainable agriculture.