(Photo: Alejandro Elsztain, CEO of Cresud)

Buenos Aires, September 13th. Last Tuesday, September 10th, the leadership of Cresud, one of the biggest farming company in South America, presented the results of the fiscal year 2019. They achieved a record 242K hectares of planting area, surpassing its latest 212K record during FY 2014. The large increment of the area occurred in Brazil, where farming increased from 59K to 89K hectares. Meanwhile, Argentina marginally went up from 128 to 131K hectares in this period and Paraguay from 4 to 8K hectares. Only in Bolivia Cresud down its farm operation from 21K hectares in 2014 to 15K hectares in 2019.

CEO of the company, Mr. Alejandro Elsztain showed satisfied with the financial results in the agribusiness unit, and particularly in the farming operation.  “The agribusiness adjusted EBITDA went up to $93 million. That is a 41% increase in dollar terms comparing year-to-year, big and the biggest of our history in dollar denominated numbers. The four countries farming just pure operational, we achieved $48 million. That is the almost 28% comparing to last year numbers in the operational. So three of the countries surpass budget, only one was a little below the budget. That was the case of Brazil, but a very small decrease in dollars. So it made a very positive number in dollar terms in the whole region”, he expressed in the call-conference.

Crop production reached 812K tons, 52% up from previous campaign, basically due to better weather conditions (in 2017/18 a severe drought affected the Argentine production). Argentina is the largest contributor to Cresud’s crop production. This FY the company harvested 557K tons in this country, versus 203K tons in Brazil, 24K in Paraguay and 29K in Bolivia.

Around half of the planted area was dedicated to the soybean production, while other 28% for corn and 12% to sugarcane.

As its turn, Carlos Blousson, general manager of Argentina and Bolivia, expressed his satisfaction with the farming results, in terms of productivity. He remarked that corn yields were 15% up and soybean 12% up, year to year. Also, Blousson stressed the strong position in the cattle business. “About meat production and cattle heads, it shows an increase in production meat of 11,100 tons, resulting in 5,000 more heads in the region. So in total 99,000 heads in the regions. In Argentina 78,000, Brazil 15,000 and Paraguay 6,000 heads”, he said.

Cresud is 100% owner of Carnes Pampeanes meatpacker company, where this fiscal year it reached a record 110,000 heads slaughter.

The following chart illustrates the results of the agribusiness unit in this fiscal year.