Surcos prepares global expansion with $36 million investment

The Argentine family-owned bioinputs company, Surcos, has announced a US$36 million investment in its international expansion project by 2030. 

While focusing primarily on the markets of Brazil and the United States, the company also planned to be present in 12 global markets.

They said, the goal was to generate $500 million by offering "innovative inputs for agriculture, with efficient and sustainable technology in application." With a focus on environmental protection, Surcos has developed technology that reduces the chemical load of inputs.

The Argentine company stated it would make the most substantial investments in the next five years to develop its formulation technology. In addition, Surcos announced plans to introduce new patents in biological products and animal nutrition, as well as investments to protect intellectual property in formulations, registration, and regulation matters.

"We have ten granted patents, over 98 patents filed, and we have an ambitious project to reach around $500 million in revenue," said Surcos' President and CEO, Sebastián Calvo.

He explained that the expansion is due to the understanding that there is a need for more sustainable and efficient agriculture. "In our market, we need to conduct a certain amount of necessary tests to be able to commercialize our products, and these are investments that we make in different markets," Calvo said.

According to him, this trend aligned with Surcos' DNA, as in 2008, the company set out to develop products based on three concepts: environmental protection, greater agronomic efficiency, and the promotion of healthier foods. 

Regarding the revenue plan, Calvo explained that of the $500 million, $280 million would come from Argentina and South LATAM, $25 million from royalties, and $250 million from partner sales to the market.

The expansion strategy in Brazil and the United States involved licensing products and technology to third parties. The General Director of Surcos Impact, Diego Bozzoti, commented, "Having international quality equipment and procedures for developing our technology allows us to partner with market-leading companies. In addition to ensuring the reliability of our products, it brings about a very positive synergy." 

The company also announced the incorporation of a new factory in 2024 in Latin America, joining the two existing ones in Argentina. In this way, Surcos aimed to occupy a "prominent place among the great leaders of the global industry," it said in conclusion.

(Editing by Leonardo Gottems, reporter for AgroPages)

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