Sept. 3, Mitsui & Co., Ltd. announced it had established an agricultural JV named SLC-MIT Empreendimentos Agrícolas Ltda S.A. with SLC AGRÍCOLA S.A., which operates 14 farms located in six Brazilian states, and has the largest scale of owned farms in Brazil, currently totaling 320,000 hectares. SLC started its agricultural operation in 1977, focusing on soybean, cotton and corn production, and employed 3,000 people as of this spring. Agricola Xingu S.A., agricultural producer company of Mitsui's Multigrain Group, own farms in 3 states over 116,000 hectares, focusing on soybean, cotton and corn. Xingu also handles production of non-genetically modified organism soybean to export to markets with Non-GMO demand, such as Japan.
The JV will lease a part of Xingu's farm (22,000 hectares) and start agricultural production in October 2013. "Mitsui and SLC are aligned towards expanding the business in multiple locations of Brazil," said a company release. "The global demand for grain is expected to increase as population grows and as the economies of emerging countries continue to improve. Mitsui will strive to strengthen its agricultural production business in Brazil, which has high potentiality to enhance a stable supply of "safe and secure" grains to Japan, Asian and other markets."