Our goal is to operate and to lead the companies we invest in, all along the agribusiness value chain, looking for new growth opportunities in an organic way and through acquisition processes, with the purpose of creating value for our shareholders. In this respect, the main aspects of our business strategy are:
Expanding our activities in Brazil, in particular, in those strategic regions where our companies already operate
We are committed to give priority to our investments in all our Brazilian business units. Together with a wide territorial extension and favorable natural conditions for framing, its plain topography, its mild temperatures and optimal rain regimes, its large availability of water resources and abundant solar energy, Brazil also enjoys attractive socio-political, economic and financial conditions, as well as a growing agricultural production according to FAO data.
We have already detected various business opportunities in Brazil and we plan to increase our portfolio of services and replicate it in new regions.
Consolidating the fragmented agribusiness market
The agribusiness market is fragmented. For example, the input supply market represents over 7,000 agents in Brazil. Hence, we plan to use our know-how and track record to identify new business opportunities for our controlled companies and our proven skill to identify and execute strategic acquisitions of agricultural businesses in the regions in which our controlled companies either do not operate at all or do operate but in a less relevant way, actively participating in the consolidation process of that market.
Moreover, we guarantee that this consolidation process will give us a larger negotiating power with suppliers in general, which will ultimately lead to an enlargement of our business margins.
Increasing agricultural production by implementing new crops and regional expansion
We intend to take advantage of new opportunities in Agribusiness in Latin America, among them, the possibility of renting new land and establishing partnerships within competitive prices and low production costs, in order to increase our production activities in regions which were either not explored or scarcely explored by us, like the states of Mato Grosso e Bahia, and to geographically diversify our activities as well as our cultures, with new crops such as cotton. Thus, we will be able to minimize climatic risks and those inherent commodities prices fluctuations, and at the same time, to increase our business network and relationships in the regions in which we operate, creating new business opportunities.
Increased operational efficiency and synergy seeking of our integrated platform
We guarantee that the activities and culture diversification growth in our controlled companies will strengthen our economies of scale and the synergy between our business areas. This will lead to fix costs reduction and consequently more productivity and operational efficiency. Moreover, we will implement operational adjustments in terms of administrative areas as well as back office practices, concentrating input and commodities commercialization areas. We understand that the success of this strategy will result in higher returns on invested capital and synergy, better economies of scale and operational margins, as well as an efficient capital allocation.