Nutrien publicizes acquisition of Safra Rica, the eighth in Brazil in 3 years
- November 3, 2022
- No Comment
The Canadian multinational nutrien announced its eighth acquisition in Brazil in three years, the third in 2022. This is now the Rich Harvest, created 19 years ago in Monte Azul Paulista (SP) to sell fertilizers and which also started selling pesticides and other solutions for farmers in the northwest region of São Paulo and Minas Gerais. The company has nine retail units.
In an interview with Rural Globe, Carlos Brito, Nutrien’s vice president of Retail for Latin America, said that Safra Rica was included in the strategy as it is a well-established retailer with strong recognition and a base of more than 1,800 active customers. The multinational does not inform the value of the deal, which still needs to be approved by the Administrative Council for Economic Defense (Cade).
This time, the multinational’s focus was not to expand the number of states, as was the case with the recent acquisition of Casa do Adubo, which added 39 points of sale, increasing Nutrien’s area of operation in Brazil from 5 to 13 states. The interest is to strengthen its presence in important agricultural regions in São Paulo, such as Alta Mogiana and Minas Gerais, growing in crops such as sugarcane, citrus, peanuts, soybeans and corn, in addition to coffee.
With Safra Rica, Nutrien now has 200 commercial units in Latin America, including stores and experience centers, with more than 1,000 consultants serving a portfolio of more than 110,000 clients in the field. Brito says that the company should grow organically in the regions in which it operates, but is also evaluating new acquisitions in the coming years, always with the focus on being one of the largest platforms for agricultural inputs and services in Brazil.
This year, revenues – not counting Safra Rica – should exceed US$ 2 billion (about R$ 10.6 billion) in Latin America, including operations in Argentina, where Nutrien has been established for 25 years and has in fertilizer sales 90% of its business.
“In Brazil, our history is younger and the strategy is to have the customer at the center. Nutrien is at the forefront of retail transformation to offer a complete package of inputs, with a digital platform, to meet all the needs of the farmer”, explains Brito.
This package, says the executive, includes soil sampling, fertilizer recommendation for each part of the farm and each crop according to the expected production in each area, cultural practices and chemical and biological inputs. The off-season recommendation also integrates the services offered by Nutrien, which works with its own products and also those of partners.
The executive emphasizes that Nutrien follows a well-established ESG agenda in Brazil, which includes socio-environmental guidelines for clients, investment in schools in the regions where it operates, inclusion of diversity and improvements in governance.
With mines in Canada, the multinational is a global leader in the production of fertilizers derived from potassium and also has four mixers in Brazil. Brito, an agronomist with a master’s degree in agriculture and an MBA in management, says that there has already been a global adjustment in prices, after the increase aggravated by the war between Russia, a major world exporter of fertilizers, and Ukraine.
In Brazil, there was no shortage of fertilizers, as predicted at the beginning of the year. “The harvest is normal. We do not have data on whether there was a market drop in the country, but we have recommended to customers a rational use of inputs to maintain productivity.”
In August, Nutrien launched a credit card for its customers with no annual fee and no brand, in partnership with a fintech, for exclusive use in its stores. According to the company’s advisory, this type of credit has already generated purchases of more than R$ 1 million.
Source: Globo Rural