Andali expands activity in Brazilian fertilizer market

Andali S / A, a joint venture formed by CHS Agronegócios (50%), the Brazilian arm of the largest agricultural cooperative in the United States; BRFértil Fertilizantes (26.5%); and holdings of two of the founders (23.5%) will invest R$ 150 million in a fertilizer mixer in Rio Verde, Goiás and the construction and operation of a fertilizer terminal for rail transshipment. With the investments, the company expects to double in size in the coming years.

The enterprise should handle approximately 1.5 million tons of nutrients derived from potassium, nitrogen, and phosphorus annually, with a 700,000-ton mixing capacity (manufacturing the final products used by rural producers).

Brazilian imports of fertilizers by port | Jan to Dec 2018-2020 | WTMT

The company entered into a 30-year partnership with Rumo, the largest railway operator in the country, to move fertilizers from the port of Santos on the coast of São Paulo to the city in southwest Goiás, chosen precisely for its geographical position.

From there, Andali will tranship and mix part of the loads of the controllers CHS and BRFértil and hopes to supply mixers from the east and northeast of Mato Grosso, the Minas Triangle, and the south of Tocantins, in addition to the entire state of Goiás. The company does not distribute to producers.

Andali wants to take advantage of the growth of grain production in the Midwest to expand its business. When the new terminal is in full operation, the company expects to multiply annual sales from the current R$ 60 million to R$ 150 million, with an additional boost at the Rondonópolis (MT) terminal, where 900,000 tons are mixed, and 270,000 tons are currently stored to serve seven mixers. Each terminal should earn R$ 75 million per year, and the total number of employees will increase from 270 to 500.

The terminal can mean cost savings for producers in the region, says Rafael Vaccari Gonçalves, Andali’s CEO. The State of Goiás imported 2.7 million tons of fertilizers in 2020, most of them by truck from the port of Paranaguá, in Paraná.

“It will generate a big cost reduction for the entire chain and advances in the agribusiness logistics in the region,” he said. “It is an important step in this partnership to develop an efficient fertilizer-handling point in the region since the terminal will be the main one for the Central Network,” said the commercial vice president of Rumo, Pedro Palma.

The bet is also on a higher consumption of fertilizers in the country in general. Consumption should increase from 36 million tons in 2019 to 42 million this year, with the conversion of pasture areas into crops and more investment by farmers. “The ratio of grains exchange for inputs is very positive and favors consumption,” said Rafael Vaccari.

The funds for the investment are already in Andali’s cash and were raised from the issuance of debentures and a Certificate of Real Estate Receivables (CRI), settled at the end of March amount of R $ 146 million. Construction began in April, and operations are expected to start in the first half of 2022.

The agreement states that Andali is responsible for the investment, operation, and management of the entire infrastructure of the fertilizer terminal. The amount invested in the project comprises headquarters and industrial sites, storage structure, and mixing equipment for blends.

Source: Valor

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