New company offers financing, sales, logistics, supplies: Interview with Rogério Castro, CEO of UPL Brazil

Date:08-11-2022

The agrochemical multinational, UPL, joined Bunge to create Orígeo, a new company that will offer financing, marketing and logistical services, as well as supply inputs, such as pesticides, bio-inputs and fertilizers. AgroPages exclusively interviewed Rogério Castro (CEO of UPL Brasil) to learn about how the new venture will innovate Brazilian agribusiness.

Rogério Castro, CEO of UPL Brasil

How did the idea of creating Orígeo come about?

The lasting and trusting relationship built by UPL and Bunge with rural producers over decades allowed us to identify the opportunity to create an unprecedented and innovative business model, which offers a personalized service to farmers and direct relationships with industries.

How did they perceive the demand for a complete and integrated solution covering products, services and consulting?

This demand was identified from the current relationship between two companies with rural producers. By identifying this opportunity, we developed a business model that brings together all the products and services required by producers, while associating this with the consultative work carried out by a highly qualified technical team, to deeply understand the business and suggest the best types of solutions for each stage of the production cycle, with a focus on increasing productivity, profitability and sustainability.

How will the new company work?

The producer will find, in Orígeo's portfolio, all the assistance required for crop planning, agricultural financing, agronomic advice, sustainability consultancy and certifications, as well as the necessary inputs for farming, such as seeds and pesticides, including biosolutions, along with fertilizers, in addition to marketing and logistics services for harvests. For this, the new company will bring together the best we have at UPL and Bunge.

Bunge will offer its expertise in the supply of inputs and services, while UPL will offer its experience in financing, commercialization and logistics. With this synergy, we will provide, in a single location, integrated solutions that guarantee an easy and customized experience for each producer's business requirements. Orígeo's technical teams and Bunge's and UPL's commercial teams will work in an integrated and complementary manner.

Why did you choose to work in the MAPITOBAPA macro-region?

The MATOPIBAPA region, which covers the states of Maranhão, Tocantins, Piauí, Bahia and Pará, was chosen because it is an area where the predominant service model is direct sales, in which industries are directly related to producers, therefore, concentrating the market profile that Orígeo intends to create. This macro-region produces more than 22 million tons of grains, with a planted area of more than 13 million hectares, growing in productivity harvest after harvest.

What solutions will UPL offer?

UPL will contribute with its portfolio of traditional crop protection products and its line of biosolutions, a segment that will represent 50% of the portfolio. All these solutions, which are scientifically tested and proven, are already known and recognized by most Brazilian farmers and have contributed to sustainable food production.

How does Orígeo fit into the OpenAg commitment?

Our "OpenAg" commitment is about open and collaborative agriculture. Since its launch in 2019, we have committed to being an agricultural network open to innovation and collaboration, to foster sustainable growth for the entire world without limits or borders. This concept is in complete dialogue with the creation of Orígeo, which will contribute to the pillars that are fundamental to the existence of the UPL, which are helping rural producers and feeding the planet's population with safe and very high-quality products.

What will be your next steps?

Firstly, we await the deal’s approval by the Administrative Council for Economic Defense (Cade). Since its creation, the company has fulfilled the conditions required for this type of transaction. Going forward, we will adopt an appropriate business plan using the structure that already exists at UPL and Bunge. Orígeo's teams will include highly qualified professionals who will work in an integrated and complementary manner to the commercial teams of Bunge and UPL. As a result, we will reduce internal operating costs and benefit producers.

(Editing by Leonardo Gottems, reporter for AgroPages)