South & West Latin America

Strong Grains & Oilseeds

The Platform delivered outstanding results in 2022 in a very challenging regional and global environment, navigating volatility and regional political and economic instability with agility and leveraging our network to maximize market opportunities and deliver for customers. In particular, we grew sustainable soybean volumes processed and exported from Argentina, and increased lecithin and glycerin sales.

Robust Coffee Results

Our West Latin America coffee teams delivered strong results in 2022 across regional origination markets (Colombia, Honduras, Mexico, Peru and Central American countries), despite an uncertain macro environment in an atypical inverted market, with sales volumes and commercial margins up 15% and 300% respectively year on year. These results were supported by the continued pursuit of sourcing diversification, customer centricity, sustainability, and financial and operational control initiatives.

Navigating Global Markets

Navigating uncertainty driven by tightening financial conditions, the Russia-Ukraine crisis and the persistent Covid-19 pandemic, the Global Markets Platform delivered good results and reduced working capital usage by optimizing funding sources through more extensive use of derivatives products and local funding, and healthy risk diversification at regional level.

Juan José Blanchard
Head of Latin America

“In a year marked by a multitude of global, regional and local challenges, our strong results were possible thanks to the resilience, expertise and concerted efforts of our teams to navigate uncertainty, maximize opportunities and serve our clients reliably and responsibly, while advancing strategic initiatives and plans for LDC’s continued growth and leadership in the future.”

More South & West Latin America Highlights

Leased a new cotton warehouse in Argentina, positioning LDC as the country’s top global cotton marketer with storage operations near ports.

Operational enhancements at our plant in Quimilí brought cotton ginning performance to a record high, despite seed cotton origination challenges as drought adversely affected local cotton crops.

Invested in our Argentine Grains & Oilseeds facilities with a third truck dump in Bahía Blanca for flexible product reception and enhanced elevation capacity (up 15%), a new access route for carriers and logistics circuit for grains at General Lagos, and the acquisition of a new warehouse in Salta Province, which expands our origination capabilities.

Engaged in an innovative joint project with an engineering partner at our Timbúes soybean crushing plant, recovering oil from gums to use as third generation biodiesel feedstock, and entered into a purchase agreement with Pampa Energía for the supply of renewable power to the complex.

Our Macro Seed business made corn its top-selling product in the region, expanded its wheat business to Uruguay and doubled the production of soybean seeds in Paraguay.

Advancing our digitalization strategy for reinforced customer relations, we leveraged data to streamline processes and adapt commercial strategies for different customer profiles, and improved the client-facing sections of our market sites with tools and functionality to enhance the user service and experience.

Our transport subsidiary, Lógico Paraguay, moved 38% more products, supported by a strong growth in corn sales.

years since General Lagos complex began operations

85%

volume of sustainable soy processed at General Lagos, up 8% year on year

16%

of total coffee volumes sold from West Latin America are certified by third party certification or verification standards