The government of the new Brazilian president Michel Temer seeks to approve a bill that flexibilizes the rules regarding the purchase of land by foreign citizens. Since 2010, foreign citizens just can purchase law with a limit of 12,300 acres. The new government considers the flexibilization of the law a key change for the country’s economic recovery and development.
Category Archives: Deals
Multinational Bunge has acquired 100 percent of Moinho Pacífico, the largest wheat mill in Latin America. The agricultural giant now owns the industrial plant in the port of Santos (state of São Paulo) and the infrastructure complex at the port that stores 200,000 tons. The value of the transaction was not unveiled by the parts involved, but Raul Padilla, Bunge’s CEO, said that this was the biggest investment in the last years.
Brazilian newspaper Valor Econômico cited today that the previous Bunge investment was the construction of a new mill in Rio de Janeiro with R$ 500 million and a capacity to grind 600,000 tons, while Pacífico has a capacity to crush nearly 700,000 tons.
According to a report from Argentina’s Infocampo, an agreement between the Chinese minister of Agriculture and the his Argentine counterpart about sorghum trade was not signed just because of lack of time. The goal of the partnership is to increase the sorghum supply in China. Today, the Asian country just imports the grain from Australia, Burma, and the US. The annual volume is 3.9 million tons and accounts for 51 percent of the world’s imports.
Brazil’s JBS announced this Tuesday that will offer US$ 6.4 billion to purchase US-based Hillshire. The deal would be done through the American subsidiary of JBS, Pilgrim’s Pride. According to the Brazilian company, the agreement could happen until the third quarter.
In Brazil, JBS acquired Seara Alimentos last year, a major poultry producer. The company aims to increase its share in the market of processed foods.
The United States Farm Bill will not have a short-term impact to Brazilian agriculture, according to the president of the Confederation of Agriculture and Livestock of Brazil, senator Kátia Abreu. “A higher prices market will persist until 2015. We will be able to evaluate greater impact of the Farm Bill after the commodity prices reach a lower baseline”, she announced.
The Brazilian senator also commemorated the defeat of the United States on cotton subsidies. “The defeat of the United States at international terms was emblematic, changing the course of several programs not just cotton subsidies, but to other products”, Kátia Abreu concluded.
Norwegian company Yara announced last week that it concluded the acquisition of the fertilizer division of Bunge in Brazil. The transaction cost, according to Norwegians, was R$ 750 million (US$ 330.6 million). Also according to Yara, the idea of the purchase is to consolidate the business.
Yara Brasil has three production units and 32 mixers. Bunge will continue to supply Brazilian farmers with fertilizers. The deal covers Bunge’s US$ 365 million assets and other US$ 385 million operating capital.
Camil, one of the largest food producers in Latin America, purchased the Argentine group Lomas. Camil, which is headquartered in Itaqui (Rio Grande do Sul), previously had expanded to Chile, Uruguay, and Peru. The Argentinean company is one of the largest organic rice exporters in the world, exporting to countries such as Iran, Iraq, Belgium, Denmark, United States, and Canada.
The Brazilian company announced that expects to “strengthen La Loma with possible investments in the firm’s development and the Entre Ríos region” in Argentina. The price of the acquisition was not disclosed. The Camil group works at the rice, beans, fish, and sugar market.
A group led by Chinese diplomats is observing soybean fields in the center-western state of Tocantins, in Brazil, until the 21st of July. According to the Chinese ambassador in Brazil, Li Jhizang, the goal of the mission is to narrow the trade relations between China and the state.
” We have noticed that (Tocantins) is a very rich agricultural state and it has an enchanting agricultural potential, abundant water and lands, stable climate and flat soils. We will invest on biodiesel and all the soybean chain here”, announced the Chinese ambassador.
From last year to 2013, the soybean area in Tocantins grew from 91,428 acres to 103,784 acres. The state is also a growing producer of rice.
Porto Alegre-based SLC Agrícola has confirmed yesterday that it will form a joint venture with the Japanese company Mitsui. The first operation of the group will take place this year with 54,363 acres of cotton and soybeans that will be planted in the Northeastern state of Bahia, in Brazil. SLC will have a 50.1 percent stake at the business.
SLC Agrícola is the largest agricultural public company in Brazil. This year, it will plant 766,026 acres of soybeans, corn, and cotton.
Brazil’s minister of Finance, Guido Mantega, announced that the Brazilian government is likely to anticipate tax exemption on imports of fertilizers and other agrochemicals. He says that the exemption will last 12 months and it is aimed to curb inflation in the country. According to Mantega, there is no need for the protectionist measure right now because the dollar value is higher compared to the Brazilian Real.
“The dollar is floating, but, at this moment, is more valued than in September of last year. This way, it creates a natural defense for those inputs. We just cannot assure this now because we depend on the dollar”, explained Mantega, without mentioning how big the exemptions would be.