July 1, 2013

Amaggi to Close Soybean Processing Plant in Cuiaba, Mato Grosso

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

Last Friday afternoon (June 28), Amaggi Exportacao e Importacao, which is the principal processing unit of Grupo Andre Maggi, announced that its soybean crushing plant in Cuiaba, Mato Grosso would close down immediately. The company did not elaborate on the reasons for making the decision other than the fact that the plant was no longer economically viable.

The president of Grupo Andre Maggi, Waldemir Loto, said the company was working with farmers to accommodate them at other crushing plants operated by the company. The closing plant had a capacity to crush 1,600 tons of soybeans per day and had been leased by Olvepar Indusria e Comercio. The company has not decided whether to return the plant to operation once the economic situation improves or to explore the possibility of selling the plant.

The company operates two other crushing plants, one located in Lucas do Rio Verde in central Mato Grosso with a capacity of 3,000 tons per day and one located in Itacoatiara on the Amazon River with a capacity of 2,000 tons per day.

The Grupo Andre Maggi PasCis the largest agricultural company in Mato Grosso and one of the largest in Brazil with operations involving the storage, transportation and processing of grain as well as the production of soybeans, corn and cotton. Over the last several years, the company has moved its headquarters from Rondonopolis, Mato Grosso to the state capital of Cuiaba.