Adecoagro Stock

Adecoagro S.A. (Adecoagro) operates as an agro-industrial company in South America, with operations in Argentina, Brazil, and Uruguay.

The company is involved in a broad range of businesses, including farming crops and rice and other agricultural products, dairy operations, sugar, ethanol and energy production and land transformation.

As of December 31, 2022, the company owned a total of 219,850 hectares of land comprising 18 farms in Argentina, eight farms in Brazil and one farm in Uruguay. In addition the company owns and operates several processing and manufacturing facilities, including four rice mills and one rice snack facility in Argentina, two rice mills in Uruguay, four dairy free-stall facilities with an average of 14,415 milking cows, two milk processing facilities in Argentina, one peanut processing facility and one sunflower processing facility in Argentina, two grain handling and conditioning plants in Argentina, and three sugar and ethanol mills in Brazil with a sugarcane crushing capacity of 14.2 million tons.

The company is:

One of the largest owners of productive farmland in South America, with more than 184,000 owned and productive hectares as of December 31, 2022 (excluding legal land reserves pursuant to local regulations and other land reserves) located in Argentina, Brazil and Uruguay, producing a wide range of agricultural products;

A leading producer of grains and oilseeds in South America. During the 2021/2022 harvest year, the company harvested 230,986 hectares (including 124,887 leased hectares and 36,750 second crop hectares) and produced 769,524 tons of grains, including soybeans, corn, wheat, peanut, sunflower and cotton, among others;

One of the largest fully integrated producers of rough (unprocessed) rice in the world, planting 60,857 hectares (including 17,844 leased hectares) and producing 416,735 tons during the 2021/2022 harvest year. The company is also a large processor and exporter of white rice (processed) in Argentina and Uruguay;

A leading dairy producer in South America in terms of cutting-edge technology, productivity per cow and grain conversion efficiencies, producing 185.6 million liters of raw milk during 2022, and adding value in the company's processing facilities. The company is a leading retailer of dairy products, including three popular brands-Las Tres Niñas, Apóstoles and Angelita;

A growing producer of sugar and ethanol in Brazil, where the company owns three sugar and ethanol mills, with an aggregate installed capacity of 14.2 million tons per year and full cogeneration capacity (i.e. the generation of electricity from sugarcane bagasse, the fiber portion of sugarcane that remains after the extraction of sugarcane juice) of 241 MW as of December 31, 2022. The company's operation is highly integrated, meaning that 96% of the sugarcane crushed at the company's mills is supplied from the company's own plantations. As of December 31, 2022, the company's sugarcane plantation consisted of 192,987 hectares; and

One of the leading companies in South America in the acquisition and transformation of undermanaged land to more productive uses, generating higher cash yields.

The company is engaged in three main businesses:

Farming Business

As of December 31, 2022, the company owned 206,896 hectares (excluding sugarcane farms) of farmland in Argentina and Uruguay. During the 2021/2022 harvest year the company held leases or entered into agriculture partnerships for an additional 142,732 hectares of arable land. The company owns the facilities and have the resources to store and condition 100% of the company's crop and rice production. The company does not depend on third parties to condition the company's production for sale. The company's Farming business is subdivided into four main businesses:

Crops: The company produces a wide range of agricultural commodities, including soybean, corn, wheat, peanut, sunflower and cotton, among others. In Argentina, the company's farming activities are primarily conducted in the Argentine humid pampas region, where agro-ecological conditions are optimal for low-cost production. Since 2004, the company has expanded the company's operations throughout the center-west region of Uruguay, as well as in the northern region of Argentina. During the 2021/2022 harvest year, the company planted approximately 230,986 hectares of crops, including second harvests, and produced 769,524 tons of grains. The company also planted an additional 10,206 hectares where the company produced over 314,000 tons of forage used to feed cattle in the company's dairy operation. During the current 2022/2023 harvest year, the company planted approximately 209,705 hectares of crops (including second harvest) and an additional 10,500 hectares of forage.

Rice: The company owns a fully integrated rice operation. The company produces irrigated rice in the northeast provinces of Argentina and in Uruguay, where the availability of water, sunlight, and fertile soil results in a coveted region for the low-cost production of rice. The company is one of the largest producers of rough (unprocessed) rice in South America, producing 416,735 tons during the 2021/2022 harvest year. The company owns four rice mills and one rice snack facility in Argentina and two rice mills in Uruguay that process the company's own production, as well as rice purchased from third parties. The company produces different types of white and brown rice sold both in the domestic Argentine retail market under the company's own brands and abroad. During the current 2022/2023 harvest year, the company planted 55,648 hectares of rice.

Dairy : The company is a leading dairy producer in South America in terms of the company's utilization of cutting-edge technology and in the company's productivity per cow and grain conversion efficiency. Through the production of raw milk, the company is able to transform forage and grains into value-added animal protein. The company's free-stall dairies in Argentina allow the company to optimize the company's use of resources (land, dairy feeding cattle and capital), increase the company's productivity and maximize the conversion of forage and grain into raw milk. The company produced 185.6 million liters of raw milk in 2022, with a daily average of 14,415 milking cows, delivering an average of 35.3 liters of milk per cow per day. In October 2017, the company completed the construction of the company's first biodigester with 1.4 MWh of installed capacity. The facility generates electricity by burning biogas extracted from effluents produced by the company's milking cows. In addition to increasing revenues and securing the company's energy requirements, this facility enhances the sustainability of the company's free-stall dairy operation by reducing greenhouse gas emissions, improving the management of effluents and concentrating valuable nutrients which are applied back to the fields. In 2019, the company further acquired two milk processing facilities that produce UHT milk, milk powder, semi-hard cheese, yogurt and chocolate milk, among other products, with the flexibility to sell to both the domestic and export market based on relative profitability. In 2022, the company's facilities processed 359.4 million liters of milk, thereby producing 161 million liters of fluid milk, over 4,260 tons of semi-hard cheese, over 19,000 tons of milk powder and over 4.6 million liters of cream and cocoa flavored milk.

All Other Segments: All other segments business primarily consists of leasing pasture to cattle farmers in Argentina. The company leases over 16,919 hectares of pasture unsuitable for crop production to third-party cattle farmers.

Sugar, Ethanol and Energy Business

The company cultivates and harvests sugarcane, which is then processed in the company's own mills to produce sugar, ethanol and energy. As of December 31, 2022, the company had 192,987 hectares of sugarcane plantations in the Brazilian states of Mato Grosso do Sul and Minas Gerais, of which 12,951 hectares were planted on the company's own land and 180,036 hectares were planted on land leased by the company under long-term agreements. The company uses different techniques to maximize sugarcane production. For example, the company uses meiosis to renew and expand harvestable areas by planting only a few rows of sugarcane, along with other products in the rest of the field. The company harvests the sugarcane within six to nine months and use that production to plant sugarcane on the area where other products have been already harvested. By doing so, the company maximizes sugarcane plantation efficiency.

Further, the company owns and operates three sugar and ethanol mills-UMA, Angelica and Ivinhema-with a total crushing capacity of 14.2 million tons of sugarcane per year as of December 31, 2022 (assuming an average of 5,569 milling hours).

The company plants and harvests 98.5% of the sugarcane milled at UMA, with the remaining 1.5% acquired from third parties. UMA is also engaged in the production of organic sugar and in 2020, it exported this product for the first time after having received the necessary certification to export organic sugar to the E.U. Angelica and Ivinhema are two modern mills, which the company built in the state of Mato Grosso do Sul, with current sugarcane crushing capacities of 5.6 and 7.4 million tons per year, respectively (assuming an average of 5,333 and 5,920 milling hours, respectively). Both mills are located 45 kilometers apart, and form a cluster surrounded by one large sugarcane plantation. Angelica and Ivinhema are equipped with high-pressure steam boilers and turbo-generators with the capacity to use all sugarcane bagasse by-product to generate electricity. Approximately 31% of electricity generated is used to power the mill and the excess electricity is sold to the local power grid, which means the company's mills have full cogeneration capacity.

In the year ended December 31, 2022, the company crushed 10.5 million tons of sugarcane. The company's mills produce both sugar and ethanol, and accordingly, the company has some flexibility to adjust the company's production (within certain capacity limits that generally vary between 40% and 80%) between sugar and ethanol, to take advantage of more favorable market demand and prices at given points in time. In the year ended December 31, 2022 the company produced 481,919 tons of sugar and 540,231 cubic meters of ethanol.

Since 2020, the company has been selling carbon credits or 'CBios' under the RenovaBio program. The RenovaBio program was designed by the Brazilian government to cut carbon emissions by discouraging fossil fuel consumption while encouraging the production of renewable energy.

Land Transformation Business

The company acquires farmland that is undeveloped or underutilized. By implementing cutting-edge production technology and agricultural best practices, the company renders this land suitable for more productive uses, enhance yields and increase its overall value. The company promotes sustainable land use through the company's land transformation activities, which seek to promote environmentally responsible agricultural production and a balance between production and ecosystem preservation. The company does not operate in heavily wooded areas or wetland areas.

Business Strategy

The key elements of the company's business strategy are to expand the company's farming business through organic growth, leasing and strategic acquisitions; consolidate the company's sugar and ethanol cluster in Mato Grosso do Sul; further increase the company's operating efficiencies while maintaining a diversified portfolio; and continue to implement the company's land transformation strategy.

Operations and Principal Activities

Farming Business

The company's Farming business is divided into three main reportable operating businesses: Crops, Rice and Dairy. The company uses its own land and land leased from third parties to conduct the company's operations. During the 2021/2022 harvest year, the company used 291,843 hectares of land to conduct the company's Farming operations, out of which, the company owned 112,361 hectares (excluding sugarcane farms), used 36,750 hectares as second harvest areas and leased 142,732 hectares.

Crops Business (Grains, Oilseeds and Cotton)

The company's agricultural production is mainly based on planting, growing and harvesting crops over the company's owned arable area. During the 2021/2022 harvest year, the company planted and harvested crops and forage on approximately 241,192 hectares, including the company's owned land, leased land and second harvest areas. In mid-2022, the company began planting crops pertaining to the 2022/2023 harvest year, which was concluded in the first quarter of 2023, with a total planted area of 220,205 hectares (including forage). The company's main products include soybean, corn, wheat, peanut, sunflower and cotton. Other products, such as sorghum and barley, are sown occasionally and represent only a small percentage of total sown land.

The company's crop production process is directly linked to the geo-climatic conditions of its farms and the company's crop cycles, which define the periods for planting and harvesting the company's various products. The company's crop diversification and the location of its farms in various regions of South America enable the company to implement an efficient planting and harvesting system throughout the year, which includes second harvests in many cases. The company's production process begins with the planting of each crop.

Soybeans

The company sells its soybeans mainly to crushing and processing industries, which produce soybean oil and soybean meal used in the food, animal feed and biofuel industries.

Corn

Corn is a cereal grown around the world and is one of the world's most widely consumed foods. Corn grain is directly used for food and animal feed (beef, swine and poultry meat production and dairy). Corn is also processed to make food and feed ingredients (such as high fructose corn syrup, corn starch and lysine), or industrial products, such as ethanol and polylactic acid (PLA). Oil, flour and sugar are also extracted from corn, with several uses in the food, medicine and cosmetic industries. Additionally, there are specific corn types used for direct human consumption such as popcorn and sweet corn.

Wheat

The company sells wheat to exporters and to local mills that produce flour for the food industry.

Sunflower

There are two types of sunflower, the most important in terms of volume being the oilseed sunflower, which is primarily grown for the oil extracted from the seed. The company grows both types of sunflower.

Peanut

The company grows peanuts in the center region of Argentina.

Forages

The company is engaged in the production of forage in Argentina, including corn silage, wheat silage and sorghum silage. The company uses forage as cow feed in the company's dairy operation. During the 2021/2022 harvest year, the company planted 10,206 hectares of forage and produced 314,000 tons of forage.

Rice Business

The company produces long grain rice and Carolina double rice, a variety of medium grain rice.

The company conducts its rice operation in the northeast of Argentina, which is one of the most efficient locations in the world for producing rice at a low cost. This is a result of optimum natural agronomic conditions, including plentiful sunlight, abundant availability of water for low cost irrigation and large quantities of land. The use of public water for artificial irrigation is governed by provincial regulations and is subject to the granting of governmental permits. The company has permits for the use of water in its production of rice in the provinces of Corrientes and Santa Fe. Maintenance of the company's permits is subject to the company's compliance with applicable laws and regulations, which is supervised by the corresponding governmental authority (e.g., the Ministry of Water, Public Services and Environment - Ministerio de Agua, Servicios Publicos y Medio Ambiente), in the province of Santa Fe, and the Water Institute of the Province of Corrientes (Instituto Correntino del Agua).

In 2022, the company expanded its rice footprint to Uruguay by acquiring the rice operations of certain subsidiaries of Viterra.

The company grows rice in four farms owned by the company, which are located in Argentina, whereas the rest is through leased farms located in Argentina and in Uruguay. In the ongoing 2022/2023 harvest year, the company has planted approximately 55,648 hectares of rice, which have not been fully harvested as of January 31, 2023. In the 2021/2022 harvest year, the company planted approximately 60,857 hectares and produced 416,735 tons of rice, which represented 20.0% of the company's total planted area and 35.0% of the company's total farming production.

Dairy Business

The company conducts its dairy operation in its farms located in the Argentine humid pampas region. This region is one of the best places in the world for producing raw milk at a low cost, due to the availability of grains and forages produced efficiently and at low cost, and due to the favorable weather for cow comfort and productivity. The company's dairy operation consists of four free-stall dairy facilities, operating at full capacity, with an occupancy of 14,461 milking cows as of December 2022. In addition, the company owns two facilities where the company processes its raw milk, as well as third parties' milk and sell the company's products to the domestic and export markets.

The company's four free-stall dairy facilities are fully ramped up and are delivering high productivity levels. In 2020, the company began the construction of the company's fourth free-stall facility, which was finalized in February 2021 and increased the company's capacity to over 14,000 milking cows.

The company owns two milk processing facilities acquired from SanCor Cooperativas Unidas Limitadas in February 2019, in addition to the Las Tres Niñas and Angelita trademarks, both of which are well-known in Argentina and represent a solid sales vehicle for retail and consumer dairy products. The company's milk facilities produce UHT milk and cream, powdered milk, and semi-hard cheese, among others. The company's facilities have a total installed reception capacity of 2.4 million liters per day and an installed processing capacity of over 1.4 million liters of raw milk per day. To account for the difference between total installed capacity and actual utilization, the company must account for the efficiency rate of the company's machines, maintenance works, number of working days and number of personnel shifts, among other variables. In 2022, the company processed 359.4 million liters of raw milk in aggregate.

The company's Chivilcoy industrial facility is located in the city of Chivilcoy, in the province of Buenos Aires, and is primarily focused on fluid milk production for the domestic market. It has an installed processing capacity of 555,000 liters per day and an installed milk reception capacity of 1.2 million liters per day. The facility has an installed processing capacity of 510,000 liters of UHT milk and 45,000 liters of yogurt, cream and cocoa flavored milk. In 2022, the company processed 121.3 million liters of raw milk at the Chivilcoy facility.

The company's Morteros industrial facility is located in the city of Morteros, in the province of Córdoba, and produces powdered milk and semi-hard cheese primarily for the export market. Morteros plant has an installed processing capacity of 870,000 liters per day (550,000 liters for milk powdered and 320,000 liters for cheese), and it has an installed milk reception capacity of 1.2 million liters per day. In 2022, the company processed 238.1 million liters of raw milk at the Morteros facility. Additionally, in 2022, the company renewed the company's cheese production line by increasing its installed processing capacity from 290,000 liters to 320,000 liters. Hence, this will enhance the company's cheese production and contribute to accessing new markets and clients through the production of other types of semi-hard and hard cheeses, while simultaneously decreasing the amount of waste generated throughout the entire production process significantly.

All Other Segments

All Other Segments primarily encompass the company's cattle business. The company's cattle segment consists of pasture land that is not suitable for crop production due to soil quality and is leased to third parties for cattle grazing activities.

The company owns 59,963 hectares of cattle grazing land located in the Argentine provinces of Corrientes, Santa Fe, Formosa and Santiago del Estero. In 2022, the company entered into new lease agreements with third-party cattle farmers for a total area of 16,919 hectares.

Storage and Conditioning for the Farming Business

The company's storage and conditioning facilities in the Farming business allow the company to condition, store and deliver the company's products with no third-party involvement.

The company owns two conditioning and storage facilities for grains and oilseeds, with a total built storage capacity of 37,000 tons. One of the company's facilities has a capacity of 12,500 tons and is located in the province of Santa Fe, Argentina, in the town of Christophersen. It has a railway loading terminal, providing logistical flexibility and savings. The company's other facility has a capacity of 24,500 tons and is located in Buenos Aires province close to Bahía Blanca's deep water port, in an area where the company produces 120,000 tons of grains. In addition, the company's peanut processing facility has the capacity to store 10,000 tons of finished product (and 67,000 of in-shell product), while the company's sunflower processing facility has the capacity to store 11,420 tons of sunflower, out of which 7,500 tons are stored in leased silo bags. The company also owns four rice mills in Argentina and two rice mills in Uruguay, which account for 239,500 tons of total storage capacity. Moreover, the company has three additional conditioning facilities for rice handling, with a total storage capacity of 60,000 tons.

Marketing, Sales and Distribution for the Farming Business

Crops

The company negotiates sales with the top traders and industrial companies in the company's markets. The company also engages in hedging positions by buying and selling futures and options in commodities exchanges, including the Chicago Board of Trade, the New York Board of Trade, the B3, and the Mercado a Termino de Buenos Aires (MATBA).

Soybeans

The company's soybean crop is sold to local companies and is ultimately exported or diverted to the crushing industry.

Corn

The company's production is mainly destined to the export market.

Wheat

The company's wheat production is mainly destined to export industry.

Sunflower

The company's sunflower production from Argentina is sold to local companies.

Peanut

Approximately 95% of the company's peanut production is exported.

Cotton

The company typically makes pre-harvest sales of cotton fiber produced in Argentina into the export market.

Customers

The company sells manufactured and agricultural products to a large base of customers.

Rice

The company exports approximately 43% of the company's exported volume to the European Union, 21% to Brazil, 10% to Mexico; and the balance to Chile, the Middle East and other Central American countries. The company sells approximately 13% of its rice in the Argentine retail market through three brands, which collectively have a 15.3% market share.

Dairy

In 2022, 70% of the company's raw milk production was destined to the company's processing facilities, while the majority of the balance was sold to a single dairy producer. The company is one of the top 10 dairy processors in Argentina, considering the company's free-stall production of over 500,000 liters per day and the raw milk the company sources from 139 farmers (133 in Morteros and 6 in Chivilcoy).

Sugar, Ethanol and Energy Business

Sugarcane

As of December 31, 2022, the company's sugarcane plantations consisted of 192,987 hectares of sugarcane planted in Minas Gerais and Mato Grosso do Sul in Brazil. Approximately 93.3% of the company's sugarcane is planted over land leased through agricultural partnerships.

Sugarcane Harvesting Cycle

In Mato Grosso do Sul, where the company's cluster is located, the weather pattern is less seasonal than in Sao Paulo. The company's wet season is dryer and the company's dry season is more humid than traditional sugarcane regions. As a consequence of this weather pattern, the sugar content, measured by the total recoverable sugar, or 'TRS', gap between the beginning and the end of the year compared to the peak of the harvest is much smaller than in São Paulo. This allows the company to grow and harvest sugarcane year-round with a minimal impact on TRS.

The company plants several sugarcane varieties, depending on the quality of the soil, the local microclimate and the estimated date of harvest of such area.

The company owns one of the most mechanized harvesting operations in Brazil. The company's sugarcane harvesting process is 99.6% mechanized (100% at the Angelica and Ivinhema mills and 95.0% at the UMA mill) and the remaining 0.4% is harvested manually. Sucrose content and sugarcane yield (tons of cane per hectare) are important measures of productivity for the company's harvesting operations.

During the 2022 harvest, the company's mills harvested sugarcane with an average TRS content of 131 kg/ton and an average yield of 67 tons of sugarcane per hectare, compared to 128 kg/ton and 69 tons per hectare in 2021, respectively.

Once sugarcane is harvested, it is transported to the company's mills for inspection and weighing. The company utilizes its own trucks and trailers for transportation purposes. The average transportation distance from the sugarcane fields to the mills is approximately 30 kilometers at the UMA mill and 33 kilometers at the Angelica and Ivinhema mills.

Sugar Mills

The company owns three sugar mills in Brazil-UMA, Angelica and Ivinhema. The company's mills produce sugar, ethanol and energy; and have the flexibility to adjust the production mix between sugar and ethanol, to take advantage of more favorable market demand and prices at given points in time. As of December 31, 2022, the company's mills had a total installed crushing capacity of 14.2 million tons of sugarcane, of which 13.0 million tons correspond to the company's sugarcane cluster in Mato Grosso do Sul. As of December 31, 2022, the company concluded the 2022 harvest crushing an aggregate volume of 10.5 million tons of sugarcane.

The company plants and harvests 98.5% of the sugarcane milled at UMA, with the remaining 1.5% acquired from third parties. UMA concluded its harvest operations for the 2022 season crushing 783,239 tons of sugarcane.

The company's third mill, Ivinhema, is located in the state of Mato Grosso do Sul, approximately 45 kilometers south of the Angelica mill. Ivinhema has a total sugarcane crushing capacity of 7.4 million tons per year. The mill is equipped with state-of-the-art technology, including full cogeneration capacity, flexibility to produce sugar and ethanol and fully mechanized agricultural operations. Ivinhema has capacity to produce up to 307,447 tons of sugar, 307,447 cubic meters of ethanol and 612,000 MWh of energy exports.

Main Products

Sugar

As of December 31, 2022, the company's sugar production capacity was approximately 3,550 tons per day, which, in a normal year of 13,865 hours of milling, results in an annual sugar maximum production capacity of over 723,145 tons of sugar.

The company produces three types of sugar: organic sugar, very high polarization, or 'VHP' sugar, standard raw sugar and white crystal sugar. VHP sugar, a raw sugar with a minimum polarization of 99.00 degrees and a maximum polarization of 99.49 degrees of sucrose content, is similar to the type of sugar traded in major commodities exchanges, including the standard NY11 contract. The main difference between VHP sugar and NY11 raw sugar is the sugar content of VHP sugar. Crystal sugar is a non-refined white sugar (color 150 ICUMSA) produced directly from sugarcane juice.

Storage and Conditioning for the Sugar, Ethanol and Energy Business

The company's sugar and ethanol storage and conditioning facilities are located at the company's mill sites and enable the company to deliver its products when they are ready to be commercialized with no third-party involvement.

Marketing, Sales and Distribution for the Sugar, Ethanol and Energy business

Sugar. The company sells sugar both in the domestic and the international markets. Domestic sales are processed by the company's own brand 'Açúcar Monte Alegre,' which is based in the state of Minas Gerais, Brazil. Through this brand, the company sells conventional and organic sugar.

Ethanol. The company sells ethanol both to domestic and international markets. The company's ethanol sales to the domestic Brazilian market accounted for approximately 76% and the remaining 24% were export sales. Approximately 34% of the company's domestic ethanol sales are made through formal agreements. The remainder is sold through daily sales orders through specialized brokerage firms and/or directly with distribution companies.

Cogeneration. The company also sells electricity cogenerated at the company's sugar and ethanol mills to the grid. Sales are made to commercialization companies, in the spot market, to distributors and through government auctions in long-term contracts.

As a hedging strategy, the company sells the electricity production of its mills through long-term contracts adjusted for inflation by reference to the 'IPCA'.

Land Transformation Business

Land transformation is an important element of the company's business model and a driver of value creation. The company is engaged in three different categories of the land transformation process, which are defined by the previous use of the land:

Undeveloped land (savannahs and natural grasslands): This is the most drastic transformation phase since it demands both physical and chemical transformation of the soil. First, the land is mechanically cleared to remove native vegetation. The soil is then mechanically leveled for agricultural operations: in the case of land being transformed for rice production, this process involves heavy land movements and systematization required for irrigation and drainage channels, roads and bridges. In the case of land destined for sugarcane plantations, land movements will also be necessary for the construction of terraces to prevent excess water runoff.

Undermanaged or underutilized farmland (cultivated pastures and poorly managed agriculture): This transformation process is lighter than the one described above since it does not require the initial mechanical clearing of vegetation or land leveling. Only in the case of land being prepared for rice production will leveling be required for efficient flood-irrigation. The transformation of cattle pastures or poor agriculture in the Brazilian Cerrado region will begin with soil correction and soil tillage in preparation for planting of the first soybean or sugarcane crop. The process will then continue as described in the case above. Land productivity or crop yields will grow at high rates during the first three to five years of the transformation process and will then commence to stabilize and grow at marginal rates, at which point the company consider the land developed.

Ongoing transformation of arable land: The application of efficient and sustainable crop production technologies and best practices such as 'no-till,' crop rotations, integrated pest and weed management, and balanced fertilization, among others, incrementally increases soil quality and land productivity over time, maximizing return on invested capital and increasing the land value of the company's properties. The company's entire farmland portfolio is constantly undergoing this phase of land transformation.

Customers

The company sells manufactured and agricultural products to a large base of customers.

Competition

The company views SLC Agrícola S.A., BrasilAgro - Companhia Brasileira de Propriedades Agrícolas, Sollus Agrícola, Radar Propriedades Agrícolas, El Tejar S.A., Cresud SACIF y A, MSU S.A. and Los Grobo Agropecuaria, among others, as the company's competitors. The company also competes in Argentina with retailers of agricultural products, including other branded rice products, such as Molinos Río de la Plata S.A., Dos Hermanos S.H., Sagemüller S.A. and Cooperativa Arroceros Villa Elisa Ltda.

Some of the largest industry players with whom the company competes are Raizen, Biosev, Atvos, Tereos, São Martinho, Jalles Machado, Bunge, Santa Terezinha, Lincoln Junqueira and Coruripe.

Seasonality

The company's business activities are inherently seasonal. The company generally harvests and sells most of the company's grains (corn, soybean, rice and sunflower) between February and August, with the exception of wheat, which is harvested from December to January. Peanut is harvested from April to May, and sales are executed with higher intensity during the third quarter of the year. Cotton is unique in that while it is typically harvested from June to August, it requires processing which takes about two to three months to complete. Sales in the company's Dairy business segment tend to be more stable. However, milk production is generally higher during the fourth quarter, when the weather is more suitable for production. In general terms, processing of rice and milk tend to be more stable during the year. Although the company's Sugar, Ethanol and Electricity cluster is operating under a 'non-stop' or 'continuous' harvest and without stopping during traditional off-season, the rest of the sector in Brazil is still primarily operating with large off-season periods from December/January to March/April. The result of large off-season periods is fluctuations in the company's sugar and ethanol sales and in the company's inventories, usually peaking in December to take advantage of higher prices during the traditional off-season period (i.e., January through April). As a result of the above factors, there may be significant variations in the company's financial results from one quarter to another.

Intellectual Property

As of April 2022, the company's corporate group owned 49 trademarks registered with the Argentine National Intellectual Property Institute and had 5 trademarks in the process of registration. Also, Adeco Brasil and UMA owned 20 trademarks registered with the Brazilian National Industrial Property Institute ('INPI'), and had submitted 1 trademark registration requests, all of which are being challenged by third parties or were initially denied by INPI. In addition, Adeco Agropecuaria Brasil S.A. had submitted one trademark for registration. Agroglobal S.A. (now Adecoagro Uruguay S.A.) has one trademark registered in Uruguay.

History

Adecoagro S.A. was founded in 2002. The company was incorporated in 2010.