AgTech Corporate Mergers & Acquisitions

ADAMA Exercise Option To Fully Own ADAMA Chile

ADAMA Chile Bought By ADAMA

ADAMA Ltd. has recently exercised its call option to purchase the remaining 40% stake in ADAMA Chile. This company specializes in producing and distributing bio plant nutrition and agrochemical products in Chile. This move follows the company’s initial acquisition of 60% of the equity in Chile Agro in 2013. ADAMA Chile’s flagship product, ExpertGrow®, is a triple mode-of-action bio-stimulant that enhances the yield of fruits, vegetables, and soybeans. ExpertGrow® is currently marketed across Latin America in countries such as Brazil, Columbia, and Peru, as well as in other key markets worldwide, such as Italy, France, and Spain. With the global biological crop protection market projected to grow at an impressive rate, reaching $18.2 billion dollars in 2026, ADAMA’s acquisition of the remaining 40% stake in ADAMA Chile is expected to significantly boost the company’s operations and expansion plans in this fast-growing industry.

According to Carlos Danilowicz, who is the Head of the Latin America Commercial Unit, biological products are a crucial part of ADAMA’s expanding sustainable portfolio. He notes a rising demand for these products, particularly in the fruit and vegetable crops cultivated for export, to meet consumer and regulatory requirements. Therefore, investing further in this market will enhance ADAMA’s position in this rapidly growing segment.

Chile’s Agriculture & Farmers Affected By Recent Events

In February, devastating wildfires broke out in central Chile, specifically in the Maule, Biobio, Ñuble, and Araucania regions. These fires spread rapidly, fueled by high temperatures and windy conditions, leading to the loss of human lives, destruction of homes, and damage to basic infrastructure. The wildfires claimed the lives of 26 individuals and destroyed over 441,316 hectares of land. Agriculture was significantly impacted, with 6,993 farmers affected, most small and subsistence farmers.

Chile’s agricultural sector has contributed to its economy, accounting for around 3.7% of its GDP. The country’s unique geography and climate have allowed the cultivation of various crops, including fruits, vegetables, wine grapes, and forestry. As a result, the country’s exports of agricultural products have been significant, with many products exported to international markets, including the United States, China, and Europe. However, the sector has faced significant challenges, such as the wildfires in central Chile, which destroyed large swaths of agricultural land and impacted the livelihoods of thousands of farmers. Additionally, climate change has led to changes in weather patterns, including droughts and floods, which have significantly impacted the agricultural sector. The sector has also been criticized for its heavy reliance on pesticides and fertilizers, which has led to concerns about the country’s environmental impact of agricultural practices. Despite these challenges, the government has taken steps to support the agricultural sector, such as investing in research and development to promote sustainable practices and working to promote exports to new markets. As such, the future of agriculture in Chile remains uncertain but shows promise, especially as the sector embraces more sustainable and eco-friendly practices.

Photo by Francisco Kemeny on Unsplash 

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