AIG invests in Brazilian agriculture

AIG Investments yesterday announced its $65 million investment in Calyx Agro Ltd., making its foray into Brazilian agriculture.
Calyx Agro Ltd., sponsored by Louis Dreyfus Commodities, will acquire, develop and sell agricultural land in Latin America, primarily in Brazil. Calyx Agro has offices in Uberaba, Brazil and Pilar, Argentina.
AIG Investments, a subsidiary of American International Group Inc. of New York, will fund its investment through AIG Brazil Special Situations Fund II LP (BSSF II) and Louis Dreyfus Commodities CA Holdings Ltd, which operates under Louis Dreyfus Commodities BV of Rotterdam, The Netherlands and has offices around the world.
In this venture, Calyx Agro will acquire land that’s operating with low technology or that’s used for livestock breeding, and then raise production yields and increase the value of the land.
“We believe that productive farmland will continue to be in high demand driven by the world’s growing appetite for agricultural commodities and Latin America’s competitive position in global trade,” said Ana Vignon, managing director and head of Latin America private equity at AIG Investments, in a statement.
Calyx Agro marks AIG Investments’ fourth venture into Latin America’s agricultural sector.
It already has investments in Falcon Farms of Miami, which grows and distributes fresh cut flowers from Colombia, Ecuador and Mexico.
The company also invested in Frigorifico Mercosul, a beef processor in Porto Alegre, Brazil, and Fertilizantes Heringer, a major fertilizer distributor in Sao Paolo, Brazil.