French farmer cooperative InVivo has acquired a majority stake in CCAB Agro, a Brazil-based importer of generic crop chemicals.
InVivo, with 220 farmer cooperatives being the owners, is the largest agricultural cooperative in France with a sales turnover exceeding 6 billion euros. InVivo distributes about 40% of crop inputs such as pesticides and fertilizers sold in France, the EU’s biggest grain producer. InVivo will expand joint procurement of crop chemicals through Novafield, a European alliance of cooperatives. Through Life Scientific, their partially owned venture in Ireland, they develop, via reverse-engineering, and offer off-patent pesticide formulations that are as good as MNCs’ products.
CCAB Agro is owned by a group of 20 cooperatives in Brazil. They specialize in registering generic pesticides, importing and supplying them to their farmer-owners. It has a sales turnover of over $100 million, which includes proprietary products from the majors. CCAB Agro has a focus on cotton, soybeans and corn agricultural inputs but they will soon be expanding to other key crops once they obtain more product registrations during the months ahead.
Pacific Agriscience is pleased to be the party that put the deal together by introducing the two of them to each other back in May 2016.
By making a visit to Brazil to gain a thorough understanding of the CCAB Agro business and operations, Pacific Agriscience’s CS Liew says it was able to detail and articulate to InVivo the strategic importance and fit of CCAB Agro into their global objectives and expansion plans. Likewise, visits made to both InVivo and Life Scientific back in late 2015 were extremely insightful in terms of having a good grasp of this company’s business operations and strategic directions.
“As part of the mutual introductions, we summarized the strategic fit of each other and presented this to the two parties. Both being agricultural cooperatives, they have not only a natural fit but both bring good value to each other’s business operations. Our conclusion was that this was a marriage made in heaven and one in which the Chinese marriage greeting: Wishing you ‘Hundred children, thousand grand children’ applies!” according to a Pacific Agriscience statement.
Source: Pacific Agriscience