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Mantiqueira cut deals to expand organic egg production

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Mantiqueira Brasil, Brazil’s largest producer of chicken eggs founded by Leandro Pinto 35 years ago, has just signed an agreement to acquire Fazenda da Toca Orgânicos, a leading organic egg producer created by entrepreneur and former Formula One pilot Pedro Paulo Diniz in 2008. The transaction, whose value was not disclosed, also includes the organic grain production structure of Rizoma Agro, founded by Mr. Diniz in 2018. The deal was filed Tuesday with the antitrust watchdog CADE, and now awaits the green light from the body.Minas Gerais-based Mantiqueira, with revenues expected at R$1.4 billion in 2022, about R$300 million more than last year, is joining a market with great growth potential and advances in its plans to deepen the focus on sustainability of activities, a strategy that has also favored the increase of cage-free poultry farming. At the same time, it offers Fazenda da Toca better conditions to gain scale and markets at home and abroad."We already had a business partnership since 2015, and the asset had been in our plans at least since 2017. At the time, the production was small, but now that it has grown the acquisition started to make perfect sense," Mr. Pinto told Valor. "We are passing the baton to someone who will preserve our legacy and be able to produce organic eggs on a large scale," added Mr. Diniz. He recalled that organic eggs account for less than 0.5% of Brazil’s egg market, compared to 5% in the United States and 20% in Germany, but the share is small mostly because supply is limited and prices are up to 70% higher than those of conventional eggs."With the expansion of production and the broad bases of our distribution network, we believe this difference can be reduced to 40% or 50%," said Mr. Pinto. He explained that, in the case of Fazenda da Toca, the acquisition involves the entire production structure, with equipment, aviaries and hens (about 500,000). The area occupied by the company - located inside Ibérica, a farm in...

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