August 14, 2007

Brazil's Maggi earmarks US$395 million investments to 2012

Brazil's soy conglomerate Andre Maggi group has announced it will pour US$395 million investments spree aiming to consolidate its operations in agribusiness, logistics and energy.

Maggi president Jacyr Bonjiolo said the firm has allocated US$35 million for storage and silos with an expected production capacity of 5 million tonnes grain turnover within five years, The trading filial Amaggi is to have a 3.5 million to 3.6 million tonnes turnover of crop grains in 2005, 20 percent above 2006; soybeans turnover was stable at 2.8 million tonnes.

Maggi's expanded corn operations are expected to export 800,000 million tonnes in 2007; from 200,000 in 2006. Overall income is seen to increase to US$1.05 billion from US$820 million in 2006. The group has expanded acreage for soybeans, corn and cotton to 195,000 hectares for the 2007/08 from the 176,000 hectares last year. The company's soybean crushing business is expected to generate US$70 million as it puts up a new facility in Mato Grosso, raising the company's production capacity from 3,000 to 6,500 million tonnes per day.