Performance

BrasilAgro’s purpose is to purchase properties at attractive prices and to work on their equity value through activities such as: turning unproductive properties into pastures, performing agricultural activities, turning pastures into rural properties suitable for more productive agricultural activities and working on the valuation of rural properties for more profitable agricultural activities, by changing its production in terms of crops and technology. To maximize the value of the properties, the Company invests in its operations, including in the development of logistics infrastructure, in distribution centers, in warehouse facilities and consumer hubs, among others.

In order to increase operational productivity and valuation of rural properties, the Company also invests in modern technologies and adoption of the best agricultural practices, such as the use of genetically modified seeds and high-yielding seeds, direct sowing techniques, optimized production through crop rotation, use of fertilizers and agricultural pesticides, according to the Guide of Good Agricultural Practices of Unite Nations’ Food and Agriculture Organizations (FAO).

In order to mitigate commodity prices, climate and regulatory risks, BrasilAgro diversifies its portfolio of rural properties both in terms of location and in crops under production. In addition, the Company seeks to balance its portfolio with different levels of development, so as to avoid operational and production fluctuations, as well as to reduce cash flow volatility related to the revenue generated by the sales of commodities produced and rural properties.

Acquisition of new areas

BrasilAgro carries out a due diligence process (Technical, Legal and Environmental), which is essential for new acquisitions as it allows assessing if business opportunities comply with the minimum requirements to develop sustainable agricultural or cattle raising activities.

After the acquisition of a new property, a detailed analysis is performed, in order to ensure the preservation of all areas of permanent protection and legal reserves, also taking into account forest connectivity, in order to maintain wildlife corridors for the regional fauna’s secure transit. Once all areas of environmental interest are listed, the proper environmental licenses for production activities are requested.

Besides the areas to be preserved, the planning includes additional protected sections, which make up a safety margin to ensure the production is within a duly authorized area.