Cooperative buys stake in Brazil logistics
The American investment in Brazilian agriculture continues with the announcement Thursday that the large U.S. farmer-owned cooperative CHS Inc. has bought 25% ownership in a Brazilian ag logistics company.
The move, company officials say, will help improve infrastructure for Brazilian farmers, for whom the task of moving grain from the field to delivery points and terminals is a massive one. The Brazilian firm NovaAgri now owns 75% of TCN, the Sao Paolo-based venture formed by CHS's acquisition.
"This investment gives CHS competitive access to the fastest-growing region of Brazil," says Stefano Rettore, senior vice president, CHS South America, Sao Paulo, Brazil. "We believe demographics and income growth, especially in developing economies, means the world demand for soybeans and corn will increase."
Included in the ventures TCN will tackle is the expansion of the Port of Itaqui, a key delivery point for Brazil's soybean farmers. The move, company officials say, will "improve market access for Brazilian growers by reducing significant logistical bottlenecks."