The investment proceeds will be used for AdecoAgro ARG’s farming operations in Argentina. The AdecoAgro Group produces sugar, ethanol and electrical energy through biomass combustion in Brazil, grains (corn, soybeans, sorghum, wheat, barley, cotton and sunflower seeds), rice and dairy products in Argentina, Brazil and Uruguay. The company also focuses on enhancing the production capacity and value of its farmlands. Adeco owns four farms with rice plantations: Ita Caabo (22,888ha), Oscuro (33,429ha), San Joaquin (37,273 ha) and Doña Marina (14,755ha); Carmen Diary farm (10,021ha) with crop production for animal feed; rice mills at Mercedes, San Salvador and Franck; and a 50/50 joint venture Sunflower Processing Plant with CHS Agro. In addition, AdecoAgro ARG owns the following farms used for agricultural purposes and cattle farming: La Carolina (8,444ha), El Orden (6,875ha), Ombu (18,321ha), El Colorado (4,960 ha), El Meridiano (6,302ha), Huelen (4,633ha), La Garrucha (3,606ha), La Guarida (15,451ha), La Horquetas (2,086ha), La Rosa (4,087ha), Los Guayacanes (7,242ha), Santa Lucia (17,484 ha), Abolengo (7,473ha) and San Carlos (4,215ha). AdecoAgro ARG is also a cost-competitive milk producer with efficient, state-of-the-art free stall dairy farms located in Santa Fe province in Argentina’s cuenca lechera (dairy area).
The company will use IFC´s investment for the following: to support ongoing operations including permanent working capital, land leveling in rice farms (zero level production) and Agricultural equipment as well as for investing in an anaerobic bio-digestion of animal waste to produce electric power for internal use and/or sale to the national grid.