LDC to establish logistics hub for cotton and fertilizers in Mato Grosso

The Louis Dreyfus Company (LDC) plans to expand its operations in southern Mato Grosso and the Vale do Araguaia region by constructing a logistics hub in Rondonópolis, Mato Grosso. This hub will integrate the reception of cotton and the supply of fertilizers after mixing the inputs within the facility.

Bruno Andrade, LDC’s commercial director of inputs for the North Latam Region, stated that the city was chosen after a thorough analysis due to its strategic location, connecting Brazil’s largest producing state with the ports of Santos (São Paulo) and Paranaguá (Paraná) via rail. The company has not disclosed the investment amount.

“We will achieve significant synergies in local operations by receiving cotton from producers and supplying fertilizers,” said Mr. Andrade. “Producers can deliver their goods and immediately collect the necessary supplies for their activities,” he added.

Mr. Andrade mentioned that barter operations are currently lower than in the past due to the drop in commodity prices and increased capitalization among producers. “This is cyclical and depends on factors beyond the company’s control. However, we offer the barter model to those in need and traditional input sales for those who prefer it,” he said.

The total land area of the hub is 167,000 square meters, with a built area of 21,100 square meters.

The cotton reception facilities are expected to be completed by mid-2025. The reception process will utilize elevators, meaning no loaders will be used, only tilters and conveyors. According to the company, all machinery will be stainless steel, requiring less maintenance in the long run.

The storage capacity for cotton at the hub will be 20,000 tonnes. LDC already has similar units in Alto do Araguaia (Mato Grosso) and Luís Eduardo Magalhães (Bahia).

In the fertilizer mixer, the company will primarily use nitrogen and potassium. The construction of this structure is expected to be completed by early 2026, with a static storage capacity of 100,000 tonnes of fertilizers.

LDC already operates a mixer in Nova Mutum, Mato Grosso, and another in Paranaguá, which will also receive investments to double its static volume capacity to 70,000 tonnes. “We are also investing in the warehouses in Rio Verde, Goiás, which will have a 10,000-tonne capacity,” said Mr. Andrade. The company also maintains an input warehouse in Querência, Mato Grosso.

Source: Valor International

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