Brazilian agricultural company SLC Agrícola plans to begin its internationalisation process in Mozambique

10 February 2012

Sao Paulo, Brazil, 10 Feb – Brazilian agricultural company SLC Agrícola plans to begin its process of internationalisation in Mozambique where it will grow soy, said the company’s chairman, Arlindo Moura, speaking to Brazilian financial newspaper Valor Económico.

“The first fours years of operation in Mozambique are likely to be restricted to growing soy, a crop that has fewer risks, both economically and technologically, than cotton, for example,” said Moura adding that the company was in touch with agricultural research company Empresa Brasileira de Pesquisa Agro-pecuária (Embrapa) to find out which crops are best adapted to Mozambican conditions.

The chairman of SLC Agrícola noted that in Mozambique land is owned by the State, and that the government provides a concession for use for a 50-year period in return for a symbolic payment and thus, initially, the company will draw up a 50-year plan.

“A new investment model will be arranged when conditions for renewal of the concession are clear,” he said.

After analysing several countries, including Colombia, Paraguay and Uruguay, Russia, the Ukraine and some other African countries, the board of SLC Agrícola settled on Mozambique because of its greater political stability and incentives offered by the government.

“We have even chosen the municipal areas where our project will be set up which, however, have to be kept secret so as not to alert the competition,” said Moura.

SLC, which in 2011/12 had a planted area of 250,000 hectares and turnover of 1 billion reals, plans to double its business over the next eight years and in 2015 is expected to have plantations totalling 410,000 hectares including sugar cane in its current portfolio of products made up of soy, maize, cotton and some Winter grains. (macauhub)