May. 1. 2009
Marubeni Corporation (hereinafter called "Marubeni") and Amaggi Exportação e Importação (hereinafter called "Amaggi") has concluded a Comprehensive Collaboration Agreement today, and agreed to strengthen their cooperation in various fields.
Marubeni aims to expand its supply source in grain-producing nations, as a part of its Foods strategy in the Distribution & Trading fields, which is positioned as a key strategic business field in "SG2009", our mid-term management plan. Brazil, on the other hand, is one of the world's largest suppliers of grains. Brazil is said to have another 250 million acres of arable land waiting to be reclaimed, and is seen to become the next major supply source of grains and oilseeds, after the United States.
Amaggi has the ability to consolidate directly from farmers, especially from their group-owned farms which exclusively grow non-gmo soybeans, where non-gmo crops are becoming increasingly difficult to originate. Marubeni has already established a foothold in Brazil with investments to assets such as port facilities, and this collaboration agreement will be another step towards strengthening our supply chain in the world of grains, where origination is becoming more and more of a challenge. In this agreement, Amaggi and Marubeni have committed each other on the following terms:
- To jointly consolidate grains and oilseeds, including non-gmo soybeans, with a volume of up to 1 million tons per year, by the year 2010.
- To jointly market Brazilian grains and oilseeds into Asian nations, notably Japan.
- To study joint investment into South American port facilities, especially in Brazil.
To fulfill the above, the two parties will periodically hold strategic meetings, with an aim of realizing investment within fiscal year 2009.
<About Amaggi Exportação e Importação>
Amaggi specializes in the retail sales of seeds and fertilizers, consolidation of grains and oilseeds, and oil crushing, under the Grupo André Maggi, headquartered in Rondonopolis, Mato Grosso, in the interior of Brazil. The group also pursues operations of export elevators in the Amazon River basin, self-owned farms, and power production. Amaggi also boasts strength in the consolidation of non-GMO grains and oilseeds, which is becoming scarce year by year, by utilizing their own farms, and their seamless supply chain from consolidation, logistics to export facilities.
- Farm acreage: 530,000 acres
- Farm output: 767,000 tons (soybean 457,000 ton / corn 294,000 ton / cotton 16,000 ton)
- Handling quantity: 3.5 million tons (1.5 million tons for export)
- Storage capacity: 2.2 million tons (39 warehouses)
- Crushing capacity: 2.0 million tons (3 facilities)