Adecoagro announced on Tuesday 1 September that it completed the acquisition of the Caarapó plant from the Raízen Group for R$705m (the real is the Brazilian currency), equivalent to approximately USD117m, paid upon completion of the transaction. The deal, announced in July, strengthens the Brazilian operations of the Luxembourg-registered agricultural and agro-industrial producer.

Located in the state of Mato Grosso do Sul, the plant processes sugarcane into sugar, ethanol and energy. It processed 3.5 million tonnes during the 2025–2026 season, which values its processing capacity at approximately USD39 per tonne. Adecoagro plans to increase this volume to 4.5 million tonnes from 2027 onwards.

With this acquisition, the group is aiming for 17 million tonnes of crushed cane in 2027 at its Mato Grosso do Sul division, which would become one of the largest in Brazil. It plans to improve Caarapó’s profitability by increasing equipment utilisation, operational efficiency and energy production per tonne of sugarcane. The transaction comes less than a year after acquiring a controlling stake in Profertil, South America’s leading producer of granular urea, for approximately USD1.1bn.