Visions - Spring 2015 - (Page 9)

strength in agribusiness to feed the world." Sumitomo's agrochemicals business started more than 30 years ago with the global export of agrochemicals produced by Japanese manufacturers. It has expanded its value chain, transforming itself into an export and wholesale business operating in 30 countries all over the world. The Agro Amazonia investment is an example of Sumitomo expanding this strategic business model into other countries and providing specific services tailored to the needs of each country or region. Piccinin stated that Agro Amazonia needed to take a new leap forward, and found Sumitomo to be an ideal partner in achieving that goal. "In addition to their financial capacity, their philosophy is very similar to ours," Piccinin said. "Their plans for the future are to meet our strategic long-term objectives, and they share the same trust that we have the "In this model, Sumitomo, through its ability to provide finance sourcing and solutions, intends to expand its business by creating synergies," said Roberto Motta, Commercial Director of Agro Amazonia. "This business model also provides opportunities to increase their participation in their customers' business chain, providing in addition to agricultural supplies, other products that may contribute to the success of farmers, such as commercialization of grain." SC Establishes New Crop Protection Distribution Holding Company in South America South America accounts for more than 20 percent of the world's market for crop protection products, and the Andes region in particular has seen notable growth.Total market sales in this region was $2.1 billion in 2014 (5% of agrochemical sales worldwide) and, given the region's high agricultural production potential stemming from the temperate climate along the Andes and crop diversity, this market should see annual growth rates of three to four percent over the long term. With its eye on this future growth, Sumitomo Corporation established, on March 31, 2015, Summit Agro South America SpA (SASA), a holding company supervising crop protection distribution companies in the Andes region. Based in Chile, it is specifically designed to help consolidate knowledge and expertise and strengthen the foundations and structure of its crop protection business region-wide. Sumitomo Corporation has been engaged in crop protection distribution in the Andes region through Sumitomo Corporation's local companies since the 1990s, and founded Summit-Agro Argentina S.A. in 2001 and Summit Agro Chile SpA in 2014 to expand the business. Previously conducted through local companies, the aim is now to place all operations in these five countries under SASA's purview, with SASA subsidiary company and branch offices established recently in Colombia, Ecuador, and Peru. SASA will be overseeing collaboration within the aforesaid five-country cluster on sales, marketing and development efforts heretofore pursued separately by each country independently, as well as pursuing new development and acquiring new commercial rights. The organization will strive to bring greater efficiency and sophistication to business operations by formulating medium- and long-term strategies for the Andes region, and by examining and pursuing investment plans to purchase commercial rights and develop proprietary products in line with these strategies. The companies overseen by SASA will share and utilize their knowledge and know-how on market characteristics, technical issues, and other matters. S u m i t o m o C o r p o r a t i o n o f A m e r i c a s 9

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Visions - Spring 2015