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Sustainable Coastal Development

Agrion Agrosolutions

Pioneering company in the field of sustainable agriculture, utilizing waste generated from sugar cane processing to produce organomineral fertilizers
Drivers of Degradation Addressed
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Land-Based Pollution
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Deforestation and Agricultural Conversion
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Wastewater
Overview

Agrion Agrosolutions S.A. is a pioneering company in the field of sustainable agriculture, utilizing waste generated from sugar cane processing to produce organomineral fertilizers. These fertilizers, a blend of bio-stable organic matter, traditional synthetic fertilizers (NPK), and micronutrients are designed to restore soil and ocean health. The organomineral fertilizers require significantly less NPK and are being released slowly and in a controlled manner to enhance plant absorption and reduce losses and contamination, thereby keeping nutrients out of waterways. Agrion’s innovative approach transforms agricultural waste into valuable products, promoting a circular economy and addressing environmental challenges associated with traditional fertilizer use.

The Challenge

The agricultural industry, particularly in Brazil, faces significant environmental challenges due to the excessive use of synthetic fertilizers and improper disposal of agricultural waste. Traditional mineral fertilizers are often inefficient for tropical climates, resulting in up to 60% of the applied fertilizer being lost through leaching, volatilization, and fixation, leading to soil degradation, water contamination, and increased greenhouse gas emissions. Additionally, the improper disposal of sugar cane processing waste, such as filter cake, exacerbates environmental issues by contaminating waterways and contributing to ocean dead zones.

Our Investment

The investment supports Agrion’s efforts to expand its production capacity and develop new product lines. Agrion’s business model involves establishing small-scale production facilities adjacent to partner sugar cane mills, enhancing logistics and enabling customized fertilizer formulations for each client. The expansion plans include regions along the Brazilian Northeastern Coast, where valuable coral reef ecosystems are threatened by the improper disposal of agricultural waste and excessive fertilizer use that can lead to ocean pollution.

Our Target Impact

Agrion Agrosolutions S.A. aims to create significant environmental and economic benefits through its innovative approach to fertilizer production and waste management:

  • Sustainable Agriculture and Soil Health: Agrion’s organomineral fertilizers aim to enhance nutrient absorption by plants, reduce mineral losses due to leaching, volatilization, and fixation, and create a favorable environment for root development. This results in improved soil quality and reduced negative impacts from intensive fertilizer use, such as soil salinization.
  • Circular Economy: Agrion promotes a circular economy by transforming sugar cane processing waste into valuable organomineral fertilizers. This approach reduces waste disposal issues, cuts down on the need for synthetic fertilizers, and decreases environmental contamination.
  • Environmental Protection: By mitigating the improper disposal of agricultural waste and reducing the reliance on synthetic fertilizers, Agrion’s products help protect coastal and marine ecosystems, including high-value coral reefs along the Brazilian Northeastern Coast. This contributes to healthier marine habitats and supports biodiversity.
  • Economic Benefits and Job Creation: The investment will help Agrion expand its operations, creating new job opportunities in local communities. The company’s business model also allows partner sugar cane mills to actively participate in the production process, providing them with an additional revenue stream and fostering economic resilience.
  • Climate Change Mitigation: Agrion’s fertilizers contribute to climate change mitigation by reducing greenhouse gas emissions associated with synthetic fertilizer production and use. The slow-release technology of organomineral fertilizers also enhances the efficiency of nutrient use, leading to lower overall fertilizer requirements and reduced environmental impact.
  • Productivity Gains: Field tests have demonstrated that Agrion’s fertilizers can significantly increase crop yields. This not only boosts agricultural productivity but also improves food security and farmer profitability in the regions where Agrion operates.
  • Innovation and R&D: Agrion is committed to continuous innovation, working on new products such as liquid fertilizers and incorporating microorganisms to create higher value-added products. This ongoing R&D effort ensures that Agrion remains at the forefront of sustainable agricultural practices.

There can be no guaranty that the investment will be completed on the terms described or implied above, that GFCR will be able to successfully invest in such investment or that impact targets will be achieved.

Region Latin America and the Caribbean
Country Brazil
GFCR Equity Fund Portfolio Business Yes
Sector Sustainable Coastal Development
Stage Investment Secured
Scale to Investment Yes
Key Contact Antoine Rougier

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