Sustainable Orange and Cattle Production – Brazil

Key Facts

• Term: 5 year-loan 
• Guarantee instrument: Pari Passu Guarantee
• Guarantee exposure: BRL 20 mln 
• Effective date: October 2023

Deal Summary

AGRI3 is supporting the mobilisation of BRL 50m from Rabobank for an orange and cattle producer in Brazil

This project contributes to the expansion of the existing high quality sustainable business practices that the company already applies. The investment builds upon an orange production pilot in an area which is anticipated to be less susceptible to high environmental risks such as the greening disease, resulting in a reduced need for intensive chemical usage compared to the current production zone. This move not only expands the farm’s commitment to more sustainable agricultural practices, but also aligns seamlessly with their long-term land use management strategy. It’s a strategic step towards cultivating a healthier and more resilient crop, extending sustainability throughout the operations.

Impact Rationale

With the support of this loan, the farm is gearing up to acquire 469 hectares of legal reserve and invest in various forest restoration endeavours, accelerating compliance with the forest code. In addition to bolstering their environmental commitment, they will make strategic efficiency upgrades, including:

A transition to smaller tractors, not just for their agility, but also to reduce fuel consumption by 20%, the installation of solar panels to power their slaughterhouse, reducing their carbon footprint while maintaining operational efficiency. For corn production, the farm is introducing cutting-edge irrigation systems across 280 hectares, not only increasing  corn cultivation, but enabling the production of two crops per annum, compensating for the land converted to orange orchards and thus optimizing land use. The farm is also planting highly productive protein grass on their pastures to provide a robust winter feed supply for its  cattle.

The farm is committed to supporting rural livelihoods. With the expansion of the farm, forty new permanent positions will be created, along with fifty seasonal opportunities, with a commitment to ensure that the lowest-paid workers stay well above the legal minimum wage. The company has also committed to conducting a gender risk and opportunities assessment to mitigate any risks related to gender employment and housing. This is to actively encourage women to take on non-traditional roles, as well as tackling challenges related to housing and social support head-on.

Impact Targets

Forest Protection

469 ha of legal reserve and/or other forest restoration investments

Sustainable Agriculture

6,000 ha of sustainable agriculture, to be certified based on SAI FSA Gold standard

Rural Livelihoods

40 new permanent positions and fair wages assured