Commodities trader and food processor Bunge Ltd said on Thursday it had bought a 30% stake in Brazilian company Agrofel Grãos e Insumos, which sells agricultural supplies in the southern state of Rio Grande do Sul.
According to a Bunge statement, the deal is in line with the company’s strategy to strengthen its capacity to source grains in Brazil.
Brazilian farmers often barter when they need products such as seeds, fertilizer or pesticides, delivering soy or corn in exchange for the agricultural supplies. Large distributors are capable of sourcing large amounts of grain using barter.
Bunge said Agrofel sources around 1 million tonnes of grains – including soybeans, corn and wheat – every year in dealings with farmers in the southern state.
The U.S.-based trader declined to give financial details of the deal.
Source: Reuters.com