In Brazil: one of the largest producers in the world ended up with a company born in Argentina

The Brazilian agribusiness group AMaggi, linked to Blairo Maggi, one of the largest individual soybean producers in the world and former Minister of Agriculture of the neighboring country with former President Michel Temer and former Governor of Mato Grosso, He remained in this country with some 62,000 hectares of a company originally from Argentina. The amount of the transaction was not disclosed in value.

This is El Tejar from Brazil. The group was founded in Argentina and then spread throughout Mercosur under the leadership of the late Argentinian businessman Oscar Alvarado and producer families from Saladillo and the region. The company in the neighboring country was no longer Argentinian and had been controlled for several years by a group from the United States and another from the United Kingdom.

El Tejar grew up with a business model focused on sowing in leased fields. He thus managed to manage a million hectares. This model then went into crisis when there was a decline in cereals and an increase in the costs of supporting agriculture on third-party lands.

In Argentina, after Alvarado’s death and the control of international funds, the company has ceased its activity, but it continued to operate in Uruguay, where the companies of the founding Argentine families remained. These families then sold the part of El Tejar Uruguay to the British Union Agriculture Group.

El Tejar de Brasil, controlled by US fund Capital International and Altima Partners, UK, also continued to operate. From the El Tejar activity in Brazil, the group AMaggi, which in its last campaign planted 258,000 hectares and produced one million tonnes, took over the company on 62,000 hectares.

According to the Brazilian company, among the assets acquired from El Tejar de Brasil, there are 34,000 hectares in its own establishments and 28,000 hectares in leased land. There are also 10,000 hectares of reserve with native vegetation. The productive establishments are located in Mato Grosso. El Tejar do Brasil employs around 900 people.

The company said that with the transaction, it hopes to increase its grain and fiber production capacity by 34%. “This achievement will also allow the company to expand its participation in the global soybean market with socio-environmental certification, where AMaggi is the leader with 30% of the global volume,” the company said.

In Argentina, the agri-food group AMaggi has been present since 2011, it originates and exports 1.8 million tonnes of cereals.

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