Agri Terra becomes the largest tomato producer in Paraguay

13-Apr-2021 - Germany

In 2017, the Agri Terra Group expanded its portfolio with another business area: With the construction of high-tech greenhouses, the company further expanded its expertise in fruit and vegetable cultivation. Meanwhile, the complex near the capital Asunción became the largest of its kind in the whole of Paraguay. The plant, which is already partially operational, will have a capacity of 8.3 million kg of tomatoes when it is finally completed at the end of 2021, making it the largest producer in the country. However, Agri Terra is already thinking of doubling capacity as there is little end in sight for demand. In the red and yellow pepper segment, Agri Terra already became the largest producer in the South American country last year.

Also No. 1 in strawberries in Paraguay

Only recently, the company acquired further land areas on which an impressive greenhouse complex for the cultivation of strawberries is planned. The targeted capacity of 4,000 tons (four million kg) would double the country's current total production. But the ambitious project has a system: while Paraguayan production only brings harvests and thus supply during four months of the year, Agri Terra will rely on anti-cyclical cultivation in greenhouses and bring harvests to market mainly during the eight months when there is otherwise no supply at all in Paraguay. It should be noted that imported strawberries from neighbouring countries are only available in inferior quality (due to rather long transport distances) and at inflated prices. For eight months of the year, the Munich-based company would thus become a quasi-monopolist on the Paraguayan strawberry market. At the same time, the company also plans to process its own strawberries as part of the group.

"Fresh strawberries are very popular in Paraguay. With the planned plant in Nueva Italia, where we are already active elsewhere, we intend to initially establish around 135,000 m2 of planting area in greenhouses, with which we will easily be able to harvest up to 4,000 tonnes per year in the so-called pyramid system. When our downstream processing is completed, we will be able to increase this capacity even further. Frozen strawberries are ideal for worldwide export, while strawberry juice is used especially in mixed juices. But jam and dessert sauces are also on our list," explains Managing Director Carsten Pfau. Customers such as supermarkets and weekly markets, restaurants, bakeries and hotels are already queuing up to secure quotas of the future strawberry production. Among them are the group's own supermarkets "Granja Direkt", which emphasize a special focus on fresh fruit and vegetables and follow a basic organic strategy. "We actually see no problems at all in selling the entire production," concludes Pfau.

International investor participation

Like the greenhouse complex for tomatoes and peppers, the company's strawberry facility will be financed without debt. "We are consistently continuing on our path of relying solely on equity capital, low interest phase or not," is Carsten Pfau's categorical answer to the question about debt capital and loan financing. In addition to the company's own funds, selected investors will again provide the financing. Investors from the USA in particular, but also from Canada, Germany and Switzerland have already committed themselves. As of March, 31 of the planned 52 units had already been spoken for, and a long list of further interested parties indicates that the sale will soon be sold out. "In recent years, our investment offers have always been exhausted very quickly, and the demand for productive tangible assets far from the US and Europe continues unabated," says Pfau. The Covid crisis in particular proved how safe agricultural investments are - people just always have to eat and drink.

In the cultivation of citrus fruits, however, the group still remains in third place. But now that the fourth orange plantation is being developed, the gap between the company and the previous top dogs in the country has been significantly reduced. "After the completion of our factory for orange juice concentrate, we will once again step up our game in the cultivation of oranges and then we will certainly soon take first place here as well," says Carsten Pfau confidently. The goal of making Paraguay an orange exporter again is already within reach thanks to Agri Terra.

Note: This article has been translated using a computer system without human intervention. LUMITOS offers these automatic translations to present a wider range of current news. Since this article has been translated with automatic translation, it is possible that it contains errors in vocabulary, syntax or grammar. The original article in German can be found here.

https://www.yumda.com/en/news/1170599/agri-terra-becomes-the-largest-tomato-producer-in-paraguay.html