Adecoagro completes acquisition of Caarapó mill for $136M

Adecoagro S.A., a Brazilian agribusiness conglomerate, finalized the purchase of the Caarapó Mill from Raízen Group, according to a press release. The deal, finalized for R$705 million, or roughly $136 million, saw Adecoagro assume full operational control of the facility. The mill, with a crushing capacity of 3.5 million tons during the 2025/26 harvest season, priced the transaction at approximately $39 per ton of capacity.

Adecoagro's plan is to increase production to 4.5 million tons at Caarapó in 2027 by incorporating surplus sugarcane from its existing operations. The mill boasts a production capacity of 6 to 7 million tons annually. Renato Junqueira Santos Pereira, Adecoagro’s VP of the Sugar, Ethanol and Energy business, outlined the company's strategy to leverage the mill's existing infrastructure and its integrated platform, including storage and commercial flexibility.

By integrating excess cane from its cluster into Caarapó, Adecoagro anticipates a boost in crushing volumes from the beginning, starting with an extended harvest season and potentially transitioning to a continuous harvest model. This acquisition will enable Adecoagro’s Mato Grosso do Sul cluster to crush 17 million tons in 2027, reinforcing its position in the Brazilian agribusiness sector.