Syngenta acquires distributor Produtecnica(Brazil)

Syngenta Crop has reached an agreement to acquire Produtecnica, a Brazil-based distributor of agricultural inputs. This is Syngenta's latest move to continue expanding its footprint in agricultural distribution channels in Brazil.

Produtecnica is a chain of six stores in the states of Tocantins, Maranhao and Piaui. In addition, Syngenta will expand its local marketing network with the addition of approximately 90 company-owned retail stores and more than 200 partner distributors and cooperatives.

This is Syngenta's fourth acquisition in the Brazilian agricultural distribution sector in the past three years and is an important part of its strategic deployment five years ago. As early as 2019, Syngenta began to participate directly in the agricultural distribution business in the southern region of Brazil through the creation of the Atua Agro chain.

Despite its own rapid organic growth, Syngenta realized that it would be difficult to quickly establish itself in the distribution market through this channel alone. As a result, the company embarked on an M&A strategy in 2021, acquiring distributors such as Dipagro, Agro Jangada and Agrocerrado.

Syngenta said it would continue to focus on "opportunities that make sense from a commercial point of view" and continue to integrate its distribution channels in Brazil. In addition, the company is also increasing investment in financial services for farmers and actively expanding financing support for agricultural procurement through its financial technology company Syde to help bring innovative technologies to farmland.