Cargill Expands Soybean Processing in Brazil

Cargill has acquired full control of a soybean oil processing, refining and bottling plant in Barreiras, Bahia, Brazil. The company had previously operated the facility under a lease since 1998. The move strengthens the company’s position in the world’s largest soybean producing and exporting country.

The Barreiras plant employs 250 people and produces soybean meal (bulk and bagged), soybean hull pellets, and crude (degummed) and refined soybean oil (bulk and bottled) under the Liza brand. Financial details of the deal, announced June 17, were not disclosed.

“We are very pleased with the acquisition of the Barreiras plant,” said Paulo Sousa, Cargill’s president in Brazil and head of its agricultural business in Latin America. “This initiative is in line with our growth strategy and strengthens our presence in the region, allowing us to continue investing to serve both the domestic market and the soybean meal export market.”

Over the past five years, Cargill has invested R$8.1 billion (US$1.5 billion) in its Brazilian assets. The company has 29 factories, 75 warehouses, seven port terminals, two innovation centers, a shared services center, five distribution centers, 14 commercial offices, and four corporate offices in the country.

In May, Cargill won an auction for a 35-year lease of a port terminal in Paranaguá, bidding $72.4 million.

In February, the company acquired the remaining 50% of SJC Bioenergia, gaining 100% control of the company, which is now called Cargill Bioenergia and includes facilities in Quirinópolis and Cachoeira-Dourada.

Tags: soybean, Cargill, Brazil