Mitsubishi Corporation invests in Brazilian Agrex

Date:11-04-2024

Mitsubishi Corporation has announced an additional BRL700 million investment in agribusiness company Agrex do Brasil. 

With these resources, the holding company aims to strengthen the integrated national agribusiness solution by expanding its operations in Brazil.

This expansion movement by Agrex do Brasil is part of a five-year plan initiated in 2023, now accelerated by the arrival of Rafael Villarroel, the company's new COO. The company operates in input distribution, grain origination and trading, and agricultural production segments.

Furthermore, Agrex do Brasil will "solidify its existing business base and seek inorganic growth opportunities," it stated. An example was the acquisition of biological inputs company Gênica, which was partially acquired at the beginning of the year and received a new round of financial investment from Mitsubishi of BRL68 million in June 2024.

Agrex do Brasil is one of the largest companies in the agricultural services and products segment, with an annual revenue of approximately BRL5 billion. Headquartered in the Brazilian state of Goiás, it also owns other brands, such as Dimatre, which focuses on soybean seed production and holds stakes in other companies, including Fertgrow (a fertilizer company).

"The strategic alliance with Gênica, specialized in the production of biological inputs, inoculants, and biostimulants, reflects the holding's commitment to sustainability and innovation — essential areas for the future of agriculture in Brazil. To further solidify this partnership with Gênica, Agrex do Brasil led Gênica's recent fundraising in the Series C investment round," Mitsubishi stated.

The company said the goal is to "increase Agrex do Brasil's involvement in providing solutions to producers, diversify its investment portfolio in Brazilian agribusiness, and promote the use of biological inputs, which are strategic for more sustainable and efficient agricultural solutions, as part of the company's expansion efforts."

New COO

An essential aspect of Mitsubishi Corporation Group's expansion strategy in Brazilian agribusiness was the announcement of a new Chief Operating Officer (COO), Rafael Villarroel, to lead this project. Three months into the role, the executive oversees various business units — including agricultural production on more than 30,000 hectares — and has been implementing the company's vision to become an industry leader, focusing on sustainability and long-term vision. This involves expanding the distribution network, origination, and production farms and strengthening closer relationships with farmers, partner suppliers, and other industry stakeholders.

A graduate in Chemical Engineering from the Federal University of Rio Grande do Sul (UFRGS) with specializations in Strategy, Marketing, and Finance, Villarroel has extensive global management experience. He expressed optimism about his new role and emphasized that his values strongly align with the company's. "I tend to base my actions on three pillars: people, as I believe in mutual respect, meritocracy, and teamwork; customers, since rural producers are the main reason for the company's existence; and innovation, which I consider essential for creating competitive advantage and maintaining market relevance," he revealed.

Agrex do Brasil's new COO joins three current board members: President and CEO Yoshihiro Enosawa, CFO Alex Abreu, and Chief Strategy and Planning Officer (CSO) Kenji Akiyama. Villarroel said he comes to contribute to Agrex do Brasil's growth and implement the vision of becoming a market leader.

"Our goal is to implement initiatives that, besides putting our current customers at the center, can expand our business at an even faster pace, starting with the 24/25 harvest. With his vast market experience, Rafael will play an essential role in helping us achieve ambitious goals," emphasized the CEO and president.

The executive board and leaders of Mitsubishi Corporation and Agrex do Brasil recently met. The delegation of Agrex do Brasil directors received a visit from Yoshinori Nagata, General Manager of Mitsubishi Corporation's Global Grains, Oilseeds, and Feed Materials Department.

Nagata believed the visit was timely, as the Brazilian agribusiness sector, despite having gone through a challenging period, had shown the capacity to continue growing in the coming years, driven by technological advances and sustainable practices. "With increased productivity and robust exports, Brazil reaffirmed its position as a global leader in agricultural production, making significant contributions to world food security and national economic development," he analyzed.

According to him, Agrex do Brasil has been essential in this context, as the company has the strength to operate with an integrated business model that covers the entire grain supply chain. Nagata himself was president of Agrex do Brasil from 2013 to 2017 and is well familiar with Brazilian agribusiness realities.

President and CEO Yoshihiro Enosawa also celebrated the visit, which he believed reinforced the solid culture and long-term vision that Agrex do Brasil sought to establish among all stakeholders. "Our engagement with everyone involved in the production chain and with our customers helps build social credibility for our company in the market. Moreover, it demonstrates our commitment to operational quality, our continuous pursuit of improvements, and our risk management to ensure compliance with the highest international standards, sustainability, long-term vision, and greater competitiveness for our business," he said in conclusion.

(Editing by Leonardo Gottems, reporter for AgroPages)