Buenos Aires, August 16th. Adecoagro is one of the largest farming companies in South America. According to its 2018 annual report they own 232K hectares, 209K in Argentina, mostly dedicated to cereals, oilseeds and rice production, and cattle breeding. The remaining farmland is placed in Brazil (19K hectares, mostly dedicated to sugarcane) and Uruguay (3K). Thus we concluded that most of the grains production becomes from Argentina.
Yesterday, Adecoagro presented the 2Q2019 and 6M2019 results, showing US$382 million gross sales and US$145 million adjusted EBITDA. In the 2018/19 campaign, the company planted 73,310 hectares of soybean (including 25,620 as the second crop) collecting 187,225 tons, all already harvested. Also, they planted 43,396 hectares of corn, harvesting 205,464 tons (100% collected) and 40,210 hectares of wheat, which produced 114,809 tons.
The average yield informed averaged 3,200 kg/ha for soybean, 1,400 for soybean 2nd crop, 6,800 for corn and 2,900 for wheat.
But, surprisingly, these yields are placed below the Argentine national averages, estimated not only by the Ministry of Agriculture, Livestock, and Fisheries but by the Buenos Aires Cereals Exchange (BCBA). In its latest monthly estimation, the ministry estimated a soybean national average yield on 3,250 kg/ha, 7,916 kg/ha for corn and 3,093 kg/ha for wheat. On the other hand, the BCBA estimated yields for soybean at 3.360 kg (3,660 only considering soybean unique crop) and 8,000 kg/ha for corn.
It could be curious this relative low yields taking into account that the climate accompanied both winter and summer crops, and allowed that farmers applied fertilizers and chemicals to obtain record yields. Additionally, the company is considered one of the top farming ones, with high agronomic capabilities and access to the ultimate technology, that would bring to obtain high yields.
eFarmNewsAr have asked for a contact with company officials to know more about this curious data, and is waiting for.