(Photo: CEO of Adecoagro, Mariano Bosch, satisfied with his dairy segment performance this year)
Buenos Aires, September 19th. In November 2018 Adecoagro bought to SanCor (the former largest dairy cooperative) two plants, one in Chivilcoy (Buenos Aires province) and the other in Morteros (Córdoba), and two milk brands: Las Tres Niñas and Angelita, by a US$47 million operation. After that, they launched long-life milk brand, Apostoles, produced at the fluid milk processing Chivilcoy facility. In the Morteros facility, the company elaborates powder milk and cheese.
This week, CEO of the company, Mariano Bosch, celebrated the presence of Adecoagro in the domestic milk market. “This year we start to produce owned brands of milk”, he said. “We are proud to manage a sustainable process, that involves all the value-chain, and what permits us to bring a high-quality product to the table of the Argentinians”, Bosch twitted.
Adecoagro has 8,500 milking cows into two stabled milking yards (free-stall), which provides around 100 million liters of milk per year. After buying the SanCor facilities, the Dairy segment of Adecoagro exhibit a large improvement. Sales of fluid milk reached US$15.3 million in the first half of the year (UHT), while sales of powder milk, cheese and cream added other US$9.3 million. Past year, this segment exhibited sales by US$1.2 million, only explained by powder milk. On the other hand, sales of raw milk downed from US$13.4 to US$5.1 million. Hence, the total sales in the Dairy segment grew from US$14.6 million in 2018 to US$29.7 million this year, while the EBITDA jumped 50% from US$5.0 to US$7.4 million. The company announced that milk production increased 17% in the first half of the year into respect 2018.
Over total US$382 million total sales, now the Dairy segment accounts 8% share.