Sumitomo Corp. has announced the acquisition of a 65% stake in Agro Amazonia Produtos Agropecuarios Ltda., distributor of fertilizers, seeds, veterinary products and other agricultural production supplies. This marks the first full-scale investment of its kind by a Japanese company in Mato Grosso, giving the company distribution access to Brazilian farmers in the state responsible for the majority of the production of soybeans, corn, cotton, sunflowers, and beef cattle in the country. Mato Grosso is two and a half times the size of Japan, with area cultivated in corn and soybeans expected to increase by between 4% and 5% over the next ten years. This growth translates into an expected growth for agricultural products and services, including agro-chemicals, fertilizers, and seeds to be between 5% and 8% over the same time period. Agro Amazonia will be able to use the funding from Sumitomo, along with the company’s logistics, procurement, and marketing networks and capabilities to drive its expansion into neighboring Brazilian states, and to support its goal of more than doubling its sales to exceed $500 million by 2019.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free weekly enhanced eNews service