Amaggi, one of Brazil’s biggest agriculture groups and one of the world’s largest privately held soybean producers, has partnered with a large rural cooperative and others to launch a new fertilizer producer, according to Bloomberg, citing a statement from Tello, the new venture.
The partners plan to spend $23 million to build the first plant in the Sao Paulo state countryside. It will have capacity to produce 200,000 mt/y and start production in 2025. More details as to the kind of fertilizer were not immediately available.
Tello expects the first plant to reach revenue of $97 million by 2026. A second plant is planned for the major grain growing state of Mato Grosso. In addition to Amaggi, partners in Tello include agriculture cooperative Coopercitrus, Souza e Lucas Participações, Viola Participações, and cattle feed producer Tecnobeef.
Amaggi is also involved in commodities trading, logistics operations, and energy production. It has a binding offtake agreement with junior miner Brazil Potash for 500,000 mt/y, as well as a marketing agreement to sell Brazil Potash’s remaining 1.9 million mt/y, and a barge transportation agreement to ship the initial planned 2.4 million mt of potash to inland ports close to major farming regions (GM Oct. 7, 2022).
Brazil Potash recently reported that it has procured its mine installation license and is proceeding with construction (GM April 12, p. 1).