SAO PAULO, Brazil (Reuters) — Commodities trader and food processor Bunge Ltd. said it has bought a 30 percent stake in Brazilian company Agrofel Grãos e Insumos, which sells agricultural supplies in the southern state of Rio Grande do Sul.
According to a Bunge statement on Sept. 12, the deal is in line with the company’s strategy to strengthen its capacity to source grains in Brazil.
Brazilian farmers often barter when they need products such as seeds, fertilizer or pesticides, delivering soybeans or corn in exchange for the agricultural supplies. Large distributors are capable of sourcing large amounts of grain using barter.
Bunge said Agrofel sources around one million tonnes of grains, including soybeans, corn and wheat, every year in dealings with farmers in the southern state.