Amaggi to invest R$1 bi in ‘green’ cotton cultivation

Amaggi, the largest Brazilian agricultural trading company, is going to invest US$ 209.5 million, or around R$ 1 billion, to expand cotton production in Mato Grosso. Areas totaling ​​37,500 hectares currently reserved for corn on four of the group’s farms in the state will be converted to cotton cultivation over the next three years. The fiber harvest is expected to increase by almost 70,000 tons by the next harvest.

Financing will come from the International Financing Corporation (IFC), the financing arm of the World Bank, and from Rabobank and Santander, with a focus on the production of sustainable and 100% traceable cotton. The projects will be implemented on farms belonging to Agropecuária Maggi, belonging to the Amaggi group, in the municipalities of Querência, Campo Novo do Parecis, and Sapezal. In addition to converting crops, the money will be used to build cotton processing units, invest in logistical assets, and purchase agricultural inputs.

“In recent years, cotton has become increasingly important for Amaggi, which has invested heavily in sustainable management, in socio-environmental certifications, and in the traceability of 100% of production,” said the group’s executive president Judiney Carvalho. He stressed that all cotton production linked to this financing with international resources causes no deforestation whatsoever; no new areas will be opened. According to Carvalho, the granting of the resource demonstrates Amaggi’s commitment to meeting the demands of the world market.

Amaggi already cultivates 102,000 hectares of cotton. With the project, the area will grow to 136,000 hectares in the next harvest. The company expects to increase cotton production from 212,000 tons to 280,000 tons in the 2021/22 season.

Source: Valor Econômico

To read the full original article, visit the link:

https://valor.globo.com/agronegocios/noticia/2021/07/13/amaggi-investira-r-1-bi-em-cultivo-de-algodao-verde.ghtml

Sharing is caring!