Cargill's Brazilian Unit to Receive Social Fuel Seal for Tres Lagoas Biodiesel Plant this Week

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Researched by Industrial Info Resources (Sugar Land, Texas)--Privately held agricultural giant Cargill Incorporated (Wayzata, Minnesota) with its Brazilian unit, Cargill do Brasil (Sao Paulo, Brazil), has started operating its first biodiesel production facility in Tres Lagoas, Mato Grosso do Sul state. The company expects to receive a social fuel seal later this week.

The Federal Ministry of Agrarian Development of Brazil grants the seal to companies that qualify by having feedstock supply contracts with family farmers. The government also gives tax exemptions to companies that hold the seal. In return, farmers receive technical assistance and agricultural training, organized by an extension service financed by the biofuel producer that goes beyond mere feedstock production and that enhances food production and security.

Under the Social Fuel Seal, both biodiesel producers and family farmers can tap into special credit lines, whereas small farmers enjoy a strong body of social rights that empower them during contract and price negotiations.

The plant started construction back in August 2011 and cost about $64 million to build. The facility will crush and process soybeans into 252 million liters of biodiesel per year. Cargill already operates a soybean crushing unit. Building the biodiesel unit at an existing site will reduce transportation costs for raw materials.

Cargill do Brasil also has begun preparations to construct a new $172 million corn-milling plant in Castro, Parana state, that is expected to be completed by the fourth quarter of 2013.

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