Adecoagro Strengthens Its Position in Brazil with Caarapó Mill Acquisition
On September 1, 2026, Adecoagro S.A. announced a strategic advancement in its operations in South America with the acquisition of the Caarapó Mill from the Raízen Group. This move follows the completion of all conditions detailed in the acquisition agreement made public on July 20, 2026.
With this acquisition, Adecoagro has now assumed control and management of the Caarapó Mill, which is positioned within the vibrant agricultural landscape of Mato Grosso do Sul, Brazil. The final transaction saw Adecoagro disbursing R$705 million (equivalent to approximately USD 136 million) in cash at the closing of the deal. This pricing was notably attractive, translating to about USD 39 per ton of the mill's crushing capacity, with a crushing volume of 3.5 million tons anticipated during the 2025/26 harvest season.
Renato Junqueira Santos Pereira, the Vice President of Sugar, Ethanol, and Energy at Adecoagro, expressed confidence in the prospects this acquisition holds for operational improvements. The company plans to leverage its established management practices and efficiency initiatives to enhance the mill's operational metrics significantly. By optimizing commercial strategies and applying agricultural best practices, Adecoagro anticipates increasing total Adjusted EBITDA, thus aligning the mill’s financial performance with the commendable profitability levels already experienced in its existing Sugar, Ethanol, and Energy operations.
Looking ahead, Adecoagro expects to ramp up crushing volumes at the Caarapó facility to approximately 4.5 million tons by the 2027 harvest season. This will be achieved through the processing of excess sugarcane harvested from other operations within the Adecoagro cluster. Pereira noted that Caarapó would naturally complement Adecoagro’s existing competitive platform in the region, owing to its strategic situated land and the flexibility to crush sugarcane throughout the year.
Renato highlighted that the Caarapó Mill operates at a similar scale to Adecoagro's current mills, which possess an installed crushing capacity of between 6 to 7 million tons of cane per year. The company plans to initially boost crushing volume by diversifying the source of sugarcane, thereby extending the harvest season and transitioning to a continuous operation model. The vision aims to enhance not only operational efficiency but also key performance indicators (KPIs), including industrial efficiency and asset utilization, which will be essential for maintaining competitiveness in the sugar and ethanol market.
Mariano Bosch, co-Founder and CEO of Adecoagro, articulated that this acquisition marks a critical phase of growth in crushing capacity at an appealing price point. The management anticipates that the same practices successful in their existing Sugar and Ethanol framework could be implemented at Caarapó, significantly improving its overall performance. This strategic direction positions Adecoagro well within a sector characterized by sustainability and low production costs, further solidifying its status as one of the premier producers of sugar, ethanol, and energy worldwide.
With this acquisition completed, Adecoagro forecasts that its combined cluster in Mato Grosso do Sul will handle an impressive 17 million tons in crushing output for 2027. This reinforces Adecoagro’s ambition of becoming a sizeable player in the Brazilian agricultural landscape, ultimately contributing to its sustainability goals and enhancing value for its shareholders through increased profitability and operational efficiency.
As Adecoagro embarks on this new chapter, the integration of Caarapó into its operational framework illustrates the company's commitment to sustainable agricultural practices while actively expanding its footprint in one of the world's most competitive agricultural markets. With 210.4 thousand hectares of farmland and various industrial facilities spread across the rich agricultural regions of Argentina, Brazil, and Uruguay, Adecoagro remains focused on producing millions of tons of agricultural products and renewable energy, thereby embodying its vision of leading sustainable agricultural production in South America.
With this acquisition, Adecoagro has now assumed control and management of the Caarapó Mill, which is positioned within the vibrant agricultural landscape of Mato Grosso do Sul, Brazil. The final transaction saw Adecoagro disbursing R$705 million (equivalent to approximately USD 136 million) in cash at the closing of the deal. This pricing was notably attractive, translating to about USD 39 per ton of the mill's crushing capacity, with a crushing volume of 3.5 million tons anticipated during the 2025/26 harvest season.
Renato Junqueira Santos Pereira, the Vice President of Sugar, Ethanol, and Energy at Adecoagro, expressed confidence in the prospects this acquisition holds for operational improvements. The company plans to leverage its established management practices and efficiency initiatives to enhance the mill's operational metrics significantly. By optimizing commercial strategies and applying agricultural best practices, Adecoagro anticipates increasing total Adjusted EBITDA, thus aligning the mill’s financial performance with the commendable profitability levels already experienced in its existing Sugar, Ethanol, and Energy operations.
Looking ahead, Adecoagro expects to ramp up crushing volumes at the Caarapó facility to approximately 4.5 million tons by the 2027 harvest season. This will be achieved through the processing of excess sugarcane harvested from other operations within the Adecoagro cluster. Pereira noted that Caarapó would naturally complement Adecoagro’s existing competitive platform in the region, owing to its strategic situated land and the flexibility to crush sugarcane throughout the year.
Renato highlighted that the Caarapó Mill operates at a similar scale to Adecoagro's current mills, which possess an installed crushing capacity of between 6 to 7 million tons of cane per year. The company plans to initially boost crushing volume by diversifying the source of sugarcane, thereby extending the harvest season and transitioning to a continuous operation model. The vision aims to enhance not only operational efficiency but also key performance indicators (KPIs), including industrial efficiency and asset utilization, which will be essential for maintaining competitiveness in the sugar and ethanol market.
Mariano Bosch, co-Founder and CEO of Adecoagro, articulated that this acquisition marks a critical phase of growth in crushing capacity at an appealing price point. The management anticipates that the same practices successful in their existing Sugar and Ethanol framework could be implemented at Caarapó, significantly improving its overall performance. This strategic direction positions Adecoagro well within a sector characterized by sustainability and low production costs, further solidifying its status as one of the premier producers of sugar, ethanol, and energy worldwide.
With this acquisition completed, Adecoagro forecasts that its combined cluster in Mato Grosso do Sul will handle an impressive 17 million tons in crushing output for 2027. This reinforces Adecoagro’s ambition of becoming a sizeable player in the Brazilian agricultural landscape, ultimately contributing to its sustainability goals and enhancing value for its shareholders through increased profitability and operational efficiency.
As Adecoagro embarks on this new chapter, the integration of Caarapó into its operational framework illustrates the company's commitment to sustainable agricultural practices while actively expanding its footprint in one of the world's most competitive agricultural markets. With 210.4 thousand hectares of farmland and various industrial facilities spread across the rich agricultural regions of Argentina, Brazil, and Uruguay, Adecoagro remains focused on producing millions of tons of agricultural products and renewable energy, thereby embodying its vision of leading sustainable agricultural production in South America.
Topics Business Technology）
【About Using Articles】
You can freely use the title and article content by linking to the page where the article is posted.
※ Images cannot be used.
【About Links】
Links are free to use.