Adeco: Supporting Innovation and Sustainability in Argentine Agriculture
The IDB provided Adecoagro (“Adeco”) – a leader in the production of food and renewable energy in South America – an alternative source of long-term debt needed to carry out investments in technology and international best practices to improve productivity.
The relationship was first established in 2008 with an IDB A/B loan, and further expansion was coordinated with the participation of commercial lenders in 2011. With $80 million of funding from the combined IDB transactions, today Adeco is well positioned with an improved technological and financial standing.
Through technical cooperation with the IDB’s Sustainable Energy and Climate Change Initiative, feasibility studies have been performed for an integrated waste management system in its free-stall facilities.
- Increased rice production from 20,000 tons to nearly 170,000 (2002-2011)
- Improved monthly milk production from 400,000 liters to 2.8 million liters (2008-2010)
- Available land for rice cultivation increased from 3,500 ha to 26,000 ha.,
- Direct and indirect formal employment in rural communities, including internship and training programs in collaboration with local schools.
- Achieved globally competitive production costs in the Northeast of Argentina, with 60% of rice production going to the export market