China’s Agria Corp, through PGG Wrightson will take a 50% stake in Agrocentro Uruguay. Conditions of the transaction have not yet been disclosed.
Agrocentro Uruguay develops technology systems in meat production and forage based seed production. It has four business units including retail and distribution of agricultural inputs, farming, logistics and consulting. It currently employs 120 people.
The company is already Wrightson’s largest seeds customer. Wrightson has been involved with Agrocentro since its inception in 2007.
The transaction takes places a few years after Wrightson sold its management contract with NZ Farming Systems Uruguay to Olam. New Zealand Farming Systems was set up in 2006 in an attempt to buy cheap land in Uruguay suitable for dairy conversion and export New Zealand’s intensive farming techniques into South America. In 2012, Olam International bought 78% of Farming Systems, changing the agreement with Wrightson and opting out of a preferred supplier agreement with the company.