Nov. 30. 2005
Marubeni Corporation has agreed on 10-year priority sales rights for South American grain to Japan and East Asia with Agrenco Group, the international grain trader. We have also agreed to increase our investment from 6.8% to 25.5% on Terlogs Terminal Maritimo Ltda (Terlogs), the group’s affiliate company that provides port services at Port of Sao Francisco do Sul, in State of Santa Catarina, Brazil. This brings our group’s total investment in Terlogs to 18.8 million dollars.
Brazil is recently increasing its agricultural production, most notably in soybeans in which it has increased production to rival the United States as an international supplier.
Agrenco Group has established a system of storage and all-inclusive transportation from the inland production regions to the exporting port, and has expanded its grain business in Brazil, which currently includes trade in non-GMO soybeans.
We have conducted business with Agrenco Group and have forecast that future demand on Brazilian and South American grain would increase annually in Japan, China and other parts of Asia. For this reason, we have continued talks with the group on strengthening our partnership.
Agrenco Group has also determined that strengthening the partnership is necessary for it to expand its business, thereby forming the basis for the agreement.
This deal gives us a stronghold in grain exports and a supply route in Brazil. Through the network of the Agrenco Group in Brazil and throughout South America, we aim to expand our grain procurement functions.
We will also strengthen the sale of not only soybean but also any other kinds of soybean derivatives and other grains, such as soybean meal, soybean oil, soybean protein, corn, sorghum, wheat and barley, to Japan and East Asia, and will consider increasing our annual volume of South American grain from the current scale of approximately 1 million tons to 2.6 million tons.
[Corporate Profile - Agrenco Group]
- A grain trading group operating mainly in Europe and South America
focusing on the import and export of agricultural products.
- Headquarters: Seynod, France
- Group turnover for FY2004: 458 million dollars
[Corporate Profile – Terlogs]
- Port service provider of Port of Sao Francisco do Sul, State of Santa
Catarina, Brazil (Owns storage of 110 thousand tons, five silos each
holding 6000 tons, among others)
- Established : December 2001
- Capital : 127.6 million reals
- Main Stockholders:
SOGO (Southocean S.A. Graos e Oleos Comercio, Exportacao e Importacao) 74.5%, Marubeni Group 25.5% (Marubeni 24.2%, Brazil Company 1.3%)
*Agrenco Group holds a 54.6% share of SOGO Southocean S.A. Graos
e Oleos Comercio, Exportacao e Importacao
(Other investors include major farmers in Brazil and port agents.)
Annual turnover: Approximately 15 million dollars (forecast for 2005),
- Volume of grain trade: 2.6 million tons