UPL partners with Bunge to create Origeo, an innovative company for farmers in Brazil; stock slips ~1%

30 Jun 2022 , 10:38 AM

Bunge, a global leader in agribusiness, food, and ingredients, and UPL Limited, a global provider of sustainable agricultural solutions, have announced a new partnership to increase productivity, profitability, and sustainability for farmers in Brazil.

UPL and Bunge will form Orgeo, a new company that will provide end-to-end solutions to farmers in Brazil’s MAPITOBAPA macro-region, drawing on the expertise of its highly qualified technical team to understand each producer’s needs from crop planning to harvest. Bunge’s expertise in financing, trading, and logistics will be combined with UPL’s comprehensive portfolio of sustainable agricultural inputs, solutions, and services.

Seed, pesticide, biosolutions, and fertilizer inputs; crop-planning assistance; agronomical advice; consulting on sustainability and regenerative and low carbon agriculture certification; agricultural financing solutions; and harvest marketing and logistics services will be available through Orgeo.

In addition, the company will provide farmers with digital agriculture services such as real-time information, recommendations, and alerts based on satellite-collected field data in order to improve decision-making and business efficiency.

“Orgeo will bring us closer to farmers and expand our offerings in this region to encompass the entire food value chain, exemplifying our OpenAg commitment to collaboration,” said Rogério Castro, CEO of UPL Brazil.

He added further, “We empower farmers to become environmental champions based on sustainable practices, such as carbon soil sequestration to reduce atmospheric CO2, by developing, promoting, and launching sustainable solutions, including biosolutions. We are excited to collaborate with Bunge and farmers on our reimagining sustainability mission.”

The agreement is subject to customary closing conditions, including approval from Brazil’s Administrative Council for Economic Defense (CADE).

At around 10.44 AM, UPL Limited was trading at Rs637.60 down by Rs6.9 or 1.07% from its previous closing of Rs644.50 on the BSE. The scrip opened at Rs638.70 and has touched intraday high and low of Rs645.50 and Rs636.20 respectively.