b'C H E M I C A L G R O U PAgro Amaznia Expands into New Areas of Brazil with Acquisition of Nativa T he global food industry expects to see the demand forincreased food production jump by approximately 1.7 times from 2010 levels by 2050. That demand will trigger an expansion in farmland needed to harvest this food, and the agricultural materials needed to protect those crops. With Brazil boasting the worlds fifth largest export value of agricultural productssoybeans, corn, sugarcane, coffee, oranges, and beefthe country is primed to emerge as an expanding yet sustainable food production area as it leaves room for agricultural land expansion without deforestation.To this end, Sumitomo Corporation has reached anMaranho, and Acre. Agro Amaznia employs a trained agreement with shareholders of NATIVA AGRO- and qualified team whose goal is to bring to the field NEGCIOS & REPRESENTAES LTDA. andproducts and services that add value to the clients NATIVA AGRCOLA E REPRESENTAObusiness. LTDA. (collectively, Nativa), an agricultural sup- After the acquisition is registered, Agro Amaznia plies distributor in southeastern Brazil, to acquire allwill start to control 100% of Nativas operation, said shares of Nativa to make it a wholly owned subsidiary.Roberto Motta, President of Agro Amaznia. Agro The acquisition is through Agro Amaznia, a Bra- Amaznia is expanding its coverage area to a diver-zilian-based wholly owned subsidiary of Sumitomosified agricultural area with great growth potential, Corporation. The deal is scheduled to be completedwhich encompasses, apart from soybean and corn, cof-by the end of the 2022 fiscal year once necessary ap- fee, potatoes and vegetables and fruits (onions, garlic, provals from relevant authorities are obtained.carrots and others).Established in 2000, Nativa is an agricultural sup- We want to lock-down customers in Minas Gerais plies distributor with eight locations and a fertilizerwith Nativa, Motta further explained. As part of manufacturing facility in the state of Minas Gerais,this strategy, Nativa will contribute by providing their located in southeastern Brazil. In addition to soy- own specialty and customized fertilizer facility; their beans and corn, the state of Minas Gerais is a regionsales network, since customers find Nativa reliable and where coffee, fruit tree, and vegetable cultivation andrespect the company due to a very good relationship seed production are thriving, especially among smallcreated between them; and their technical knowledge and medium-sized farmers. Nativa has built a strongabout fruits and vegetables and coffee; and use of their customer base rooted in the community through theexperimental station. This synergy would be further development, manufacture, and sale of unique prod- enhanced by Agro Amaznias contributions in: crop ucts that meet customer needs, and through supportprotection, since we have partnerships with various for farming by agronomists (sales staff with knowledgemultinational suppliers; soybean seeds, with our own of agricultural production technology). brand (Dagma) and seeds facility; plant nutrition and Agro Amaznia has been in business since 1983 andagri-services, also with our own product line; livestock, is one of the largest agricultural and livestock suppliesthanks to our very comprehensive portfolio; and our distributors in Brazil. Sumitomo Corporation acquiredexperience in finance and governance.full ownership of the company in 2018 and has sinceWe believe that with the synergy between Agro contributed to the expansion of Agro AmazniasAmaznia and Nativa, including the strengths of each business by leveraging its financing, procurement, andcompany, we will have the best portfolio of products business management expertise. Agro Amaznia isand services in the market, thus presenting a great the only company of its kind operating in the entirecompetitive advantage when compared to our com-state of Mato Grosso, with a presence in the states ofpetitors, Motta continued. Sumitomo Corporations Gois, Tocantins, Par, Rondnia, Mato Grosso do Sul,team contributed a lot towards the conclusion of this acquisition, specially due to their great experience in 10 visions Summer 2022'