Noble Group, a global supply chain manager of agricultural, industrial and energy products, has strengthened its South American supply chain activities by the addition of a fertiliser joint venture.


Noble is entering into the tripartite joint venture to form a new fertiliser blending and marketing company in Brazil.  The new joint venture will be composed of Peninsula, a well recognised local fertiliser blender in Brazil, MAS Trade Holding, a Dutch holding company, with important participations in companies involved in the supply of international fertiliser raw materials, and Noble.


Peninsula’s current activity is to blend fertilisers and market other fertiliser raw materials to grain and agricultural producers in the states of Paran, So Paulo, Mato Grosso do Sul and Mato Grosso.


The objective of this new joint venture is for each shareholder to use its added value to gain a multiplier effect for the value of the joint venture in the Brazilian fertiliser market.


Brazil today is one of the expanding agricultural world superpowers and is also one of the largest consumers of fertilisers in the world.


For Noble, this new joint venture will add value to its existing origination base in the several grain producing states of Brazil and will enable barter and exchange operations not only for grains, but also for other agricultural commodities that Noble Group is involved in Brazil, such as sugar, coffee, cotton, etc.


This implements Noble’s ongoing strategy to expand its presence in a solid and sustainable way to offer real value to its customers in all its origination, production and consumer areas worldwide.


The new joint venture is also intended to expand into other locations, not only in Brazil, but also in Paraguay, Argentina and Uruguay.


The investment by Noble in the joint venture is approximately US$4.334mn and was determined on a willing-buyer willing-seller basis taking into account the net assets of the joint venture of US$7mn.


The addition of this business to Noble’s South American agriculture supply chain will also generate synergies with Noble’s crop financing, trade financing, logistic and distribution businesses, both in South America and worldwide.