The late founder of Argentina's Aceitera General Deheza, Adrián Pascual Urquía, would be proud of his legacy. His vision of the huge potential of the edible oil industry when he founded the company some 40 years ago, has become a reality and made AGD a global force in its industry.
Mr. Urquía started up AGD in a modest industrial facility with second-hand equipment and the combined efforts and commitment of 19 partners and 30 workers. They believed that with hard work, Argentine provinces could contribute to sustainable development and a solid national economy.
IFC’s loans and equity investments have helped AGD grow and increase its global competitiveness. These investments included a $100 million long-term financing package in 2001-2002, when Argentine companies could not access normal trade financing lines.
A Global Leader in the Agribusiness Industry
Today, AGD is an integrated agricultural-industrial complex mainly involved in the crushing of oilseeds to produce vegetable protein meals and pellets and edible oils. It is one of Argentina’s main bottled edible oil exporters, with a 30 percent share of total Argentine exports. AGD also produces a variety of other products, including blanched peanuts, regular, light and olive oil mayonnaises, peanut butter, soy food beverages, and fruit juices. The company supplies these products to the Argentine market and 45 other countries on five continents.
 AGD cultivates its crops on about 200,000 hectares of its own farmland. In addition, the company rents farmlands and has joint ventures with other farmers who grow soybeans, sunflower seed, peanuts, wheat, and corn, for further supply to the various industrial plants. AGD provides technical assistance and sells agricultural chemicals, fertilizers, and seeds to the farmers.
A preferred employer that constantly invests in new technologies and the training of its staff, AGD employs more than 2,000 people. Its annual turnover in the 2005-06 fiscal year was $1.8 billion. |
Aceitera General Deheza's Partnership with IFC |
 |
|
| 1986-1998 | IFC invests in projects sponsored by AGD and its partners to improve Argentina’s export infrastructure and help develop the oilseed processing industry, including expansion of the railway system, a grain terminal, and a crushing facility
|
| 1994 | IFC makes $15 million loan and $10 million direct equity investment in AGD
|
| 2002 | IFC invests $60 million pre-export finance facility, including $30 million syndicated loans, to support the company during Argentina’s financial crisis
|
| 2004 | IFC makes $100 million in loans, including $30 million syndicated to international banks, to support AGD’s 2004-2006 investment program, including increasing economies of scale to improve cost competitiveness. The company reduces transport and storage costs by building new inland storage facilities
|
| 2006 | AGD receives IFC's Client Leadership Award
|
Client Leadership Award
At the Annual Meetings of the World Bank Group and International Monetary Fund in October 2006, Lars Thunell, IFC's Executive Vice President, acknowledged AGD's efforts by presenting it with IFC's Client Leadership Award. AGD was singled out from among 1,300 IFC client companies in the private sector in emerging market economies. The annual award recognizes innovation, operational excellence, and commitment to sustainable development, all values for which IFC stands.
Presenting the award, Thunell reiterated, “With IFC’s help, AGD made smart investments that gave it competitive advantages to weather Argentina’s financial crisis, as well as purchases that enabled more than 6,000 local farmers to stay in business during difficult times. AGD today is a globally competitive company and a South-South success story. Its growth demonstrates what we can achieve by working together.”
Accepting the award on behalf of the company,  Miguel Acevedo, a member of AGD’s board of directors, said, “Through the years, IFC has been a valuable and reliable partner. They helped us build a sustainable business, delivering food and feed products to markets around the world. IFC’s support and advice continued and grew even stronger during the 2001 crisis in Argentina. We are proud of our long-term partnership with IFC, which has shown a true commitment to our company’s business and development.”
The award also acknowledged AGD’s major contributions to its community and the handling of its financial commitments through its professional financial management, long-term strategy, and reinvestment of profits. This has enabled the company to syndicate several of its borrowing facilities internationally.
|
AGD in the Community
AGD keeps solid links with its home town, General Deheza, a city of about 10,000 inhabitants and the site of its main plant. The company's contributions to the community include:
- The growth and prosperity of a large network of farmers and intermediaries
- The development of new housing and support for community organizations, schools, social and sports clubs, and health care
- The development of key local infrastructure, which in addition to reducing AGD's transportation and handling costs, also benefits the entire supply chain
To improve its environmental sustainability, AGD set up a steam generation plant in 2001 that uses a shell boiler. This system has allowed the company to replace its use of a limited resource, natural gas, with a renewable resource, the biomass of peanut shells and sunflowers.
IFC and Agribusiness
As part of its commitment to help reduce poverty and improve people’s lives, IFC supports projects in agricultural production, aquaculture, and fishing, marketing beverages, food processing, and distribution of agricultural products.
Learn more from IFC's Agribusiness site...
For further information contact:
Adriana Gomez
Communications Officer
E-mail: AGomez@ifc.org
Tel: (202) 458-5204
Published on February 12, 2007
