CUIABA, Brazil , July 19, 2022 /PRNewswire/ — Sumitomo Corporation has reached an agreement with the shareholders of NATIVA AGRONEGÓCIOS & REPRESENTAÇÕES LTDA. and NATIVA AGRICOLA E REPRESENTAÇÃO LTDA. (collectively, “Nativa”), a distributor of agricultural supplies in the Southeast Brazil, to acquire all the shares of Nativa to make it a wholly owned subsidiary. The acquisition is being made through Agro Amazonia Produtos Agropecuários SA, a wholly owned subsidiary of Sumitomo Corporation and is expected to be finalized by the end of fiscal 2022 once the necessary approvals from the relevant authorities have been obtained.
With population growth and rising income levels, particularly in developing countries, global food demand is expected to increase about 1.7 times from 2010 levels by 2050. Amidst demand increase in food production, an expansion of agricultural land is vital to increase unit output, as is the demand for agricultural equipment. Brazil has the fifth highest export value of agricultural products in the world, with soybeans, corn, sugar cane, coffee, oranges and beef. In addition, Brazil is likely to become even more important as a food production area, as it makes room for the expansion of agricultural land without deforestation.
Established in 2000, Nativa is an agricultural supplies distributor with eight locations and a fertilizer manufacturing plant in the state of Minas Gerais, located in the southeast Brazil. In addition to soybeans and corn, the state of Minas Gerais is a region where the cultivation and production of coffee seeds, fruit trees and vegetables are flourishing, especially among small and medium farmers. Nativa has built a strong customer base rooted in the community through the development, manufacture and sale of unique products that meet customer needs, and through the support of agriculture by agronomists (sales personnel who know the agricultural production technologies).
Agro Amazonia has been in business since 1983 and is one of the largest agricultural supply distributors in the Midwest of Braziloperating 50 points of sale in eight Brazilian states, mainly in the Mato Grosso Region. Sumitomo Corporation acquired full ownership of the company in 2018 and has since helped expand Agro Amazonia’s business by leveraging its expertise in finance, procurement and business management.
Agro Amazonia contributes to the sustainable development of agriculture through the expansion of its portfolio of products and services. It has expanded its customer base to about 20,000 households, mostly consisting of pastoralists and large soybean and corn producers with 1,000 to 10,000 hectares or more. The company is becoming an industry leader Brazilwith sales that have more than quintupled since 2015.
With this acquisition, Sumitomo Corporation aims to expand the sales territory of the operation by Brazil and achieve new business growth by combining Agro Amazonia’s broad product portfolio based on its strong agrochemical supplier relationships with Nativa’s fertilizer development and manufacturing capabilities and new customer segments.
From an overall strategy perspective, Sumitomo Corporation has positioned agriculture as one of its next-generation growth areas and “agricultural inputs and services” as a stable business growth category. In the field of agrochemicals, Sumitomo Corporation started its agrochemical export business in the 1970s, and currently operates an import and wholesale business in 37 countries overseas. In Europe, the company expanded its value chain by acquiring agricultural supply distributors. In the fertilizer field, since starting the fertilizer raw material import/export business in the 1950s, Sumitomo has built an integrated business base by importing fertilizer raw materials to manufacturers and directly selling to farmers, mainly in Japan and the Asia-Oceania region.
As part of its commitment to contribute to society, Sumitomo will continue to support stable and sustainable food production and the development of local communities and industries around the world. The company aims to provide products and services that meet the agricultural needs of each country and region, while using its expertise in the field of agricultural materials for the expansion of its business.
Based on July 8, 2000, Nativa Agronegócios is a company designed by people who believe in the union between sustainability and development. Therefore, throughout its 21 years, Nativa has structured itself physically and technologically to serve each customer in a differentiated way, thanks to highly qualified professionals focused on its constant growth, providing the producer with greater reliability and security.
About Agro Amazonia
Founded in 1983, Agro Amazônia is a pioneering company in the agri-food sector in the State of Mato Grosso. It is one of the largest and most successful agricultural input distributors, offering a comprehensive product portfolio from domestic and international manufacturers, also providing technical assistance to farmers. Agro Amazônia is the only company of this type operating in the entire state of Mato Grosso, which is also present in the states of Goiás, Tocantins, Pará and Rondônia. Agro Amazônia has a trained and qualified team, with the aim of bringing products and services to the field that add value to the client’s business.
About Sumitomo Corporation
Sumitomo Corporation (“SC”) is one of the world’s leading Fortune 500 trading and commercial investment companies with 131 locations in 66 countries. The entire SC Group consists of more than 800 companies and nearly 75,000 employees. SC transacts commodities across industries using global networks, provides various financing to related clients, serves as an organizer and coordinator for various projects, and invests in companies to promote greater growth potential. SC’s main business areas include metal products, transportation and building systems, environment and infrastructure, media, network, lifestyle goods and services, mineral resources, l energy, chemistry and electronics.
SOURCE Sumitomo Corporation of Americas