Jun 25, 2010
Los Grobo from Argentina Increasing its Presence in Brazil
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
The Argentine company known as Los Grobo, which is already one of the principal agricultural companies in Mercosul, is focusing its ambitious expansion plans in Brazil. Los Grobo originated in Argentina, but has been expanding rapidly in recent years into Brazil, Paraguay, and Uruguay. According to its president, Gustavo Grobocopatel, the company plans to originate 800,000 tons of soybeans across all of its operations in 2010/11 with the ultimate goal of originating 3 million tons of soybeans.
The company primarily rents land from farmers in addition to providing a wide range of agricultural services for thousands of farmers. The company currently rents 50,000 hectares of land in Brazil and plans to increase that to 80,000 hectares during the 2010/11 growing season. The company's efforts in Brazil are focused primarily in the states of Maranhao, Piaui, and Tocantins in northeastern Brazil which is also known as the MaPiTo region. The company also has soybean production in the states of Bahia, Goias, and Minas Gerais.
Across all operations, the company will cultivate 300,000 hectares of crops in 2010/11 with its primary focus being on soybeans. The company also produces corn and wheat, but 60% to 70% of its grain origination is soybeans.
The company is looking outside of Argentina for its expansion because of restrictive tax policies in Argentina and a lack of available land suitable for soybean production. With a few years, the company will have the majority of its operations in Brazil. According to its president, the company is focusing its efforts on Brazil because they feel that grain production in Brazil will double over the next ten years and the goal of the company is to be a principal player in the Brazilian agricultural market. In the words of the president, the plan is to become the "Cargill of Mercosul."