The family that owns the world’s largest soybean nursery has paid $195 million for the Australian firm’s 60,000-plus acres.

The family that owns the world’s largest soybean nursery has paid $195 million for the Australian firm’s 60,000-plus acres.

Bartolomés, who controls GDM/Don Mario, acquired LIAG Argentina as a private equity investment; This is an unprecedented operation in the market value

Ignacio and Gerardo Bartolome, shareholders of GDM, have personally acquired the agricultural and livestock firm LIAG Argentina.
Ignacio and Gerardo Bartolome, shareholders of GDM, have personally acquired the agricultural and livestock firm LIAG Argentina.

The Bartholomew’s family Owner of GDM Seeds/Don Mario, the largest national group associated with the soybean seed business and a world leader in crop genetics, Left this morning for $195 million. with the entire stock package of the firm Agriculture LIAG Argentina, with Australian capital, which has more than 60,000 hectares in the country. As reported by this media, “the operation was accompanied by an important bank”. Shareholder Gerardo Bartolome said which seeks to “continue to innovate” now on the manufacturing side. For the value, this is an unprecedented bargain in the agriculture sector. Meanwhile, we remind you that in 2016 the investment group Victoria Capital Partners (VCP) He retained 75% of Los Grobo, which operates over 200,000 hectares, although in a scheme of associations with third parties and leased. Over time, in 2002 Adecoagro acquired 74,000 hectares belonging to Pecom Agropecuaria, a Perez Companc group.

Founded in 1982 by the Australian Calbetzer family, LIAG Argentina SA owns a farm in Vedia, Buenos Aires province. called “Las Balas” with 13,123 hectares; In Talavera, Salta, “Finca Tolloche” 41,080 hectares (30,000 irrigated), and in Vicuña Mackenna, Córdoba, “El Consuelo”, 9346 hectares.

In their country, since the 1970s, the Kalbetzers have raised cattle, horses and sheep for wool and meat, and for grain, cotton and vegetable production. However, despite having a strong presence in Argentina, the descendants of the Calbetcers dedicated to other fields were not interested in continuing their activities in Argentina and that is why the business exit was carried out.

In addition to its own hectares in Argentina, plus those hired, the Australian group worked on a total of 79,000 hectares of crops with an annual production. 320,000 tons of grain between soybeans, corn, wheat, sunflower, sorghum, legumes and cotton. In 2020, it received a Gold Award for its focus on the environment, sustainability and community development teams. -Banco Galicia for excellence in agriculture.

Image of Las Balas, one of Argentina's Liag fields passed down to the Bartolomé family
Image of Las Balas, one of Argentina’s Liag fields passed down to the Bartolomé family

In its June 30, 2019, year-end report, the firm clarified that the Las Balas and El Consuelo ranches collectively constituted “a business unit with approximately 22,500 hectares dedicated to agriculture and livestock.”

In particular, St bullets, In that campaign, “areas for wheat, soybeans, and corn, respectively, were 3200, 6000 and 3700 ha About”, “with a satisfactory yield in relation to the budget level, except for wheat (4% less), it was exceeded by both soybeans and corn (13.8% and 6.6% respectively)”. Meanwhile, Shi consolation The area included in the sowing plan has reached the level 4000 hectaresBoth corn and soybeans, the document describes.

In tolosh farm At the end of the company’s 2019 financial year, cotton cultivation was 4,600 hectares. As for soybeans, there was a cultivated area 14,000 hectares. This LIAG production cycle also used some 8100 hectares Through agreements concluded with third parties (7,200 of which corresponded to the cultivation of pepper) and he himself was involved in the exploitation of pepper, with an area. 1400 hectares.

They note on their page that They were one of the first companies in the country to manage to certify their production with the Responsible Argentine Cotton Seal, which is awarded to companies that demonstrate positive environmental, social and production performance.

“The main activity of the company is agriculture (cereal crops, olives, legumes and cotton) and to a lesser extent animal husbandry. Agricultural products are processed and commercialized in their own fields located in the provinces of Buenos Aires, Córdoba and Salta, where they produced 11,750 tons of cotton and 4,230 tons of fiber in 2021,” they describe.

One of the important issues that the company reflects is that Certification is a tool that accredits good company practices that are not just politically correct words, but demonstrated and documented facts” and Emphasizes the importance of including continuous improvement processes for quality seals: “The world is interested in purchasing raw materials that meet international standards, and large clothing companies are beginning to require the BCI Cotton seal on their products.”

“The certification protocol aims to improve the production system on the following aspects: responsible use and conservation of water resources, non-removal and presence of cover, sustainable environmental practices, comprehensive pest management, fiber quality, sustainable labor practices and community relations,” they add.

As for the fields rented for production, in this production cycle “due to the high rental prices, both in the central zone and in the marginal areas of agriculture”, LIAG Argentina used only 5,800 hectares under this modality, the study highlights.

Although the operation was run by the Bartolome family and has nothing to do with GDM/Don Mario, the latter firm has not stopped growing in Argentina’s agriculture and internationally. Today it works in more than 15 countries and is responsible for soybean genetics in 40% of the world’s cultivated hectares.

currently has 750 employees, 16 research and development (R&D) stations, more than 50% of the soybean genetic market in Argentina and Brazil and aiming to reach 5% in the United States in the next five years, will compete with the big firms in the sector. Last year, its sales exceeded 320 million dollars.

“In Brazil, first of all, we are very good. In the United States we are investing because we are developing the business and in Argentina, which has less impact on the global result, although the business is also good,” said Ignacio Bartolome, CEO, a few days ago. Ignacio replaced his father Gerardo, the founder of the company, in this position.

After the acquisition of the Australian firm, as shareholders Bartholomew noted that “Aspires to double LIAG’s operations in the country, add value to production, strengthen ties with the communities where the company operates, and also continue to improve its products to continue growing, knowing that production sustainability is key. to its successful development”.

“The acquisition of LIAG is part of a profession that has connected me to the sector for more than 40 years and is part of my personal concern to continue to innovate in this area, in this case, for example manufacturing,” he explained. Gerard Bartholomew.

Source: La Nacion