Allaria Ledesma announced at Expoagro that it is increasing its presence in agribusiness by creating a new grain gathering company and consolidating its brokerage business.
Argentina’s largest capital market company announcing its commitment to expand its participation in agribusiness has been one of the main business news so far at Expoagro 2023.
Specifically, Allaria Ledesma, Argentina’s leading capital markets firm, announced that it is increasing its presence in the agribusiness sector in Argentina, through the creation of a new grain bulking company and the consolidation of its brokerage business.
Allaria formally announced the creation of Allaria Agronegocios, a new firm that will operate with its own capital as a grain brokerage company. On the other hand, it announced that, two and a half years after its entry as controlling partner in the grain brokerage firm Morgan, García Mansilla y Cía (MGM), the latter will now be renamed Allaria Agrofinanzas.
Thus, both companies will operate under the umbrella of the Allaria Agro brand.
WHY AGRIBUSINESS?
“We are advancing in our diversification strategy that includes a greater presence in key sectors of the country’s real economy,” said Juan Politi, Executive Vice President of Allaria.
“It means a very important step for us, not only because we are strongly entering the most dynamic engine of the national economy, but also because it underpins our vision of bringing the capital market closer to the real economy in order to contribute directly to the country’s development,” he added.
He also considered that the historical drought situation “forces us to propose and offer more creative and efficient tools in the administration of resources. In view of this reality, professional, informed and experienced management in the capital markets is essential to mitigate risks and maximize opportunities.
When asked by Infocampo, Politi added that the idea is that “the farmer trusts us with everything related to financial management, from collections and payments, from paying a VEP to the AFIP to seeing if he needs financing for a campaign and, in that case, if it is convenient to issue a promissory note in dollars or in pesos”.
“Or that also, when he has some resources left over, he knows where to invest them,” Politi remarked.
From his point of view, something has been going wrong because the capital market is not capturing all the flow generated by agriculture. “This happens because Argentina gives enough reasons to be distrustful. We are the leader of the local capital market, and we want to look for the producer to resort to this possibility”, he completed.
In practice, he explained that “the agro-finance area will allow you to negotiate with third parties, to sell to exporters, for example, and the agribusiness area will allow you to do so; And the agribusiness area will be another figure of collection, by consignee, which will allow you to sell to an exporter who wants you to deliver in November, but maybe you want the money now or invested in such and such a way, I put myself in the middle between the two ends and make a decoupling of logistics and finance in favor of what each of the two ends wants”.