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Giant U.S. cooperative looks at Paraná
MAURO ZAFALON
the Folha de S. Paulo
 The giant American CHS, cooperative with 79
years and 350 thousand members in the U.S.,
have put their feet in firmly in Brazil.
It has
just
closed a partnership with Coopermibra,
a ten year cooperative that
handles grain in northwestern
Parana.
This marriage is good for the both of them. For CHS, because
there is a chance to increase the purchase
of grain in Brazil and build projects of
investments here that, according to the
market, will exceed US$ 1 billion.
CHS moves exactly into a region where the
production costs are among the lowest in the
country and the logistical conditions, for
exports, are the best.
 For Coopermibra (Joint Agricultural
Cooperative in Brazil), there is the
possibility of growth of at least 30% in the
short term and to reach several foreign
markets due to globalization of CHS.
Stefano Rettore, president of the American
cooperative in Brazil, says that this
cooperation of the two companies not only
involves a relationship of sales and
purchase of goods, but a partnership to
solve problems, determine strengths and
explore opportunities for investment for
both sides.
"We do not want to just be - another one
- in
the region, but to be partners."
(continue...)
In Rettore's words are signs of CHS'
plans for Brazil, which are large. The
partnership with Coopermibra should be only
the beginning of the consolidation of these
goals. Concentrating on energy, inputs,
grain production and food processing in
the U.S., CHS plans to repeat that here in
Brazil.
The company, which entered Brazil five years ago to study the market, begins
accelerating investments, but is not revealing
the value to be invested.
Near the consumer
Third largest company in the sector of grains
in the U.S., CHS will work in Brazil in both
the production of fertilizers as well as
food
processing. "We want to increase the
production chain and get closer to the
consumer," says Rettore.
While we will provide inputs to farmers and provide a line of finished
products in the preparation of food.
CHS already has joint investments with
Brazil's Multigrain and with
Japan's Mitsui in western Bahia in the
production of grains, processing of
vegetable oils. It plans for the production
of biodiesel and alcohol and expects new
partnerships in the coming years.
If the partnership with Coopermibra is good
for CHS, it is no less important for the Paraná. "Both have cooperative
philosophy, which aims to generate volume,
add value and bring income to the producer,"
says Henning Erich Baer, president of
Coopermibra.
One of the advantages of producing 6,200
members of Coopermibra certainly will be the
provision of credit. Currently, to receive
resources for trading, the producers are
committed to delivering their crops to these
companies.
Already CHS will provide the resources to
Coopermibra with interest rates much more
competitive than the 12% a year that
producers can get domestically. With these
resources, cooperatives and producers can
choose the best price in the purchase of
inputs, says Dival Ceranto, superintendent's
administrative Coopermibra.
In addition to paying lower interest ,
producers can obtain up to 5% reduction in
the prices on the purchase of inputs.
More partners
The current partnership, which will be the
promotion of production for marketing of
soybean and corn, will expand to
fertilizers, seeds and agrochemicals.
CHS' main focus is the South. The goal
is to increase its partnerships
in the region and provide the financial instruments so
that companies can grow. "The financial
management is fundamental today," says Rettore.
Offering the best financial conditions and
management to its partners, CHS expects to
grow together. In 2007, the gross
revenues for the
company in Brazil were R$ 200 million. In
2009, they are expected to be R$ 600 million. The company
shipped this year, at least 1.1 million tons
of grain from Brazil and Argentina.
With lower production and logistics
costs, CHS will supply customers specific European and Asian markets
to their
advantage and in return, bringing in fertilizer
and inputs, closing the circle and lowering
costs.
The partnership also speeds up the pace of
development at Coopermibra, which today
receives 600 thousand tons of grain, but
should jump to 1 million tons in three
years, according Dival Ceranto. Coopermibra's goal is to
increase
coop membership, which would enhance
the supply of grains to CHS.
For Coopermibra, the partnership will help
in solidifying the company and the increase
of investments, mainly in storage, already
planned for R$ 50 million.
With operations in 49 of the 50 U.S. states,
Latin America and Europe, CHS earned US$ 22 billion of revenue in the
first nine months of fiscal year 2008 and
should close the period with US$ 30 billion.
All Paraná cooperatives have
annual revenue of U.S. $ 14 billion.
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