Cattle – Brazil

Key Facts

• Client: Lindolpho Pio de Carvalho Dias group (LPCD)
• Term: 10-year loan
• Guarantee instrument: Maturity Subordination Guarantee
• Guarantee exposure: 40% of loan value
• Effective date: December 2020

Deal Summary

AGRI3 is supporting the mobilisation of USD 5m from Rabobank for LPCD.

LPCD is a traditional Brazilian farm run by the Carvalho Dias family, they currently manage 48,1k ha of land in Mato Grosso state. 6,8k ha of this land is dedicated to their cattle operations, which is spread across three farms in the Cerrado Biome.

The lender is supporting LPCD’s ambition to improve the sustainability of their cattle operations over the coming years on three of the group’s cattle farms in Tangará da Serra in Mato Grosso State. Activities associated with this loan focus primarily on i) pastureland renovation for cattle intensification; ii) forest protection and reforestation to accelerate compliance with the forest code; and iii) improvement to rural livelihoods by conducting farmer field days and developing a school / workers accommodation.

Impact Rationale

The loan is helping LPCD to invest in the preservation of 2.3k ha of native forest to accelerate compliance with the Brazilian Forest Code. 265 ha forest of Permanent Protection Area (APP) is being restored by isolation.

In addition, the investment is supporting the renovation of degraded pastureland to complement an intensified semi-confinement system. The intensification/renovation activity is expected to improve the total capacity and improve the rearing capacity (1.2k ha of low-medium degraded pastureland renovated and 53k heads by 2023 and improved rearing capacity from 4 heads to 8 heads per ha).

LPCD will rebuild a school with a nursery and elementary school in Mato Grosso state, all of which will be accessible for disabled children (capacity of about 32 children in year 1). They will also conduct farmer field days for other farmers that may have degraded pastureland to spread the system to other farms that may have degraded pasturelands.

Impact Targets

Forest Protection

2.3k ha of native forest preserved

Sustainable Agriculture

1,200 ha of degraded pastureland restored

Rural Livelihoods

30 farmers trained through farmer days