User:Adecoagro/sandbox

Adecoagro S.A., is a leading agroindustrial company focused in the production of food and renewable energy in South America. With operations in the most productive regions of Argentina, Brazil and Uruguay, the company managed to be among the most efficient and lowest cost producers within the sector. In 2014, Adecoagro recorded $722.9 million in sales and $215.5 million in adjusted EBITDA. On January 28 2011, Adecoagro completed the IPO of its shares listed on the NYSE.

History
The company commenced its operations in September 2002 after the 100% stake acquisition in Pecom Argentina S.A. The transaction, comprising the purchase of 74,000 hectares of farmland represented one of the largest stock purchase in South America in that year.

In 2004 Adecoagro began its regional expansion acquiring approximately 5,000 hectares in Uruguay and three farms (20,500 hectares) in Western Bahia, in Brazil.

In 2005, the company acquired its first sugar and ethanol mill, Usina Monte Alege (UMA) with a nominal crushing capacity of 1.2 million tons of sugarcane. Right after the incorporation of UMA, Adecoagro began the construction of its sugarcane cluster in Mato Grosso do Sul, Brazil with the building of its first greenfield mill in Angelica, reaching in 2010 a nominal crushing capacity of 4.0 million tons of sugarcane.

In 2007, Adecoagro started consolidating its rice operations with the acquisition of Pilaga, one of the largest and oldest agricultural company in Argentina. With this purchase, the company added 94,000 hectares fo croppable land and 2 rice mills, a unique rice seed breeder along with an established well known brand in the Argentine market - Molinos Ala. In that same year, the company started to expand its Dairy Business in Argentina (where natural conditions are the most adequate ones), with the construction of a Free-Stall Dairy farm with a milking capacity of 3,000 cows.

In 2011, Adecoagro went public with its shares listed in the NYSE (under the symbol AGRO rasing $420 million. In that same year, the company strated the construction of the first phase of the Ivinhema mill, located in the municipality of Ivinhema, in the state of Mato Grosso do Sul. By mid 2015, the mill was fully constructed with a nominal crushing capacity of 5.0 million tons of sugarcane.

Business Units
Adecoagro has three main lines of businesses: Farming, Land Transformation and Sugar, Ethanol and Energy Production

Farming Business
This business unit comprised the operations related to crops, dairy and rice. As of September 2014, Adecoagro owned 236,132 hectares in Argentina and Uruguay 20,509 hectares in Brazil.

Crops Segment
With 91,935 hectares of own productive land, Adecagro is among the largest producer of agricultural commodities including soybeans, corn, wheat, sunflower, and cotton, among others. In Argentina, farming activities are primarily conducted in the Humid Pampas where agro-ecological conditions are optimal for low cost production. Since 2004, the company expanded its crop operations throughout the center-west region of Uruguay and the western part of the state of Bahia, Brazil, as well as in the northern region of Argentina.

Adecoagro's crop production model is centered on no-till farming together with other important technologies such as balanced fertilization, integrated pest and weed management and crop intensification allowing the company to preserve and improve the productive capacity of its soils. In the 2013/2014 harvest season, 182,813 hectares were planted (including leased and second harvest hectares). As of 2014, the segment reported Adjusted EBITDA of $34.7 million.

Rice Segment
Adecoagro owns a fully-integrated rice operation, located in the Northeast provinces of Argentina, where agricultural conditions such as fertile land, solar radiation and water availability makes them one of the most efficient region for producing and processing rice at low cost.

With 32,104 owned hectares (out of the 35,328 hectares that were planted in the 2014/2015 harvest season), Adecoagro is the largest rough rice producer in Argentina and is among the largest producer in the world. As of 2014, the company produced over 230,000 tons, roughly 15% of the total Argentine production, according to Conmasur.
 * Rough Rice Production

Adecoagro is heavily involved in seed breeding, becoming one of the most important breeders of rice seeds in the region. These seeds are used at their own farms and sold to rice farmers in Argentina, Brazil, Uruguay and Paraguay. The company is also developing, alongside BASF, a herbicide-tolerant rice variety to assist in the control of harmful weeds.
 * Rice Seed Breeding

Adecoagro owns three rice mills with over 300,000 tons of total milling capacity. The company sotres and processes its entire rice crop as well as utilize excess milling capacity to process rough rice purchased from third party growers. Through the milling process rough rice is transformed into White and Brown rice, as well as sub-products such as Broken Rice, Rice Bran and Hulls Rice.
 * Storage and Processing

Dairy Segment
The company dairy operations consist of two free-stall facilities with a total capacity of 6,500 cows. With this production system, cows are kept inside large barns where they are free to roam. Cows are fed protein rich rations composed of grains and forages and are milked three times a day, using a milking mechanism consisting of an 80-cow rotary platform, which milks an average of 500 cows per hour. The system has proven to be very efficient delivering over 78 million liters in 2014 (34 liters per cow per day) and generating $8.5 million in Adjusted EBITDA.

Land Transformation
The company is actively engaged in the land transformation business, which consists in acquiring undeveloped or underutilzed farmland and, by implementing cutting-edge production technology and agricultural best practices, transforming the land to be suitable for more productive uses, enhancing yields and increasing the value of the land. Over the last thirteen years, Adecoagro put into production 166,737 hectares and during the last seven years sold 17 fully mature farms, generating capital gains of approximately $185 million.

Sugar, Ethanol & Energy Business
Adecoagro cultivates and harvests sugarcane which is then processed in owned mills to produce sugar, ethanol and energy. As of December 2014, the company operated a sugarcane plantation area of 124,412 hectares. The company currently operates three sugar and ethanol mills with 10.2 million tons of sugarcane crushing capacity. All of the mills are fully equipped, including full cogeneration capacity and flexibility to produce sugar and ethanol.

Usina Monte Alegra, located in the state of Minas Gerais was the first mill acquired by Adecoagro. It has a nominal crushing capacity of 1.2 million tons of sugarcane
 * Usina Monte Alegre

The Angelica mill is located in the city of Angelica, in the state of Mato Grosso do Sul. The mill has 4.0 million tons of sugarcane crushing capacity and a storage capacity of 40,000 cubic meters of ethanol and 120,000 tons of sugar
 * Angelica mill

The Ivinhema mill is located in the city of Ivinhema in the state of Mato Grosso do Sul, 45 kilometres south of the Angelica mill. Both mills form a 9.0 million ton cluster surrounded by 120,000 hectares of sugarcane. The construction of the mill was concluded by mid 2015. The Ivinhema mill has a storage capacity of 40,000 cubic meters of ethanol and 120,000 tons of sugar
 * Ivinhema mill

Environmental
Adecoagro pursues a sustainable model of production and has been granted with many certifications that proves such commitment: Since 2007, part of the grains produced have been certified under ISOO 9001
 * ISO 9001

In 2011, Adecoagro was the first public company in the world to certify the production of soybeans under RTRS standards
 * RTRS

In 2012 and 2013, the Company certified its grain storage and handling facilities in Argentina with 2BSvs which works to confirm, through independent audits, the sustainability criteria used according to the European Directive 2009/28/EC.
 * 2BSvs

Since 2008, Adecoagro participates in a sustainable soybean program with Cefetra, one of the main European companies of the value chain.
 * CEFETRA

United States Environmental Protection Agency, EPA has certified Adecoagro´s ethanol as an advanced biofuel available to be commercialized in the US market. They have also certified the Companys´ Argentina soybeans as a sustainable soybean which alows it to qualify for a premium to the market price.
 * RFS2

Adecoagro´s ethanol has been approved to be sold in the Californian market as an advanced biofuel protected by California Air Resources Board Low Carbon Fuel Standard.
 * LCFS

The Company´s production of sugar and ethanol has been certified by Bonsucro, under the Production Standards Chain of Custody. Bonsucro is a global, non-profit initiative focused on improving the social, economic and environmental context of sugar and ethanol produced from sugar cane.
 * Bonsucro

Corporate Social Responsability
Adecoagro has been, since inception, deeply engaged in the development of the local communities nearby its operations, creating alliances with non-profit and social organizations as well as local institutions.