Cofco to Buy Two Bunge Sugar Mills and Lift Brazil Crushing Capacity to 25.5 Million Tonnes
Cofco International agreed to acquire Bunge’s Rio Vermelho and Nova Unialco sugarcane mills in São Paulo state. The assets would increase Cofco’s Brazilian crushing capacity from 18.5 million to 25.5 million tonnes, subject to regulatory approvals and customary closing conditions.
Cofco adds 7 million tonnes of crushing capacity
Cofco International has agreed to acquire two Brazilian sugarcane mills from agricultural commodities trader Bunge, expanding the Chinese company’s position in the world’s largest sugar-producing and exporting country. The companies announced the agreement separately on Tuesday, according to Money Times. The transaction value was not disclosed, and completion remains subject to customary closing conditions, including regulatory approvals.
The deal covers the Rio Vermelho and Nova Unialco mills in the Araçatuba region of São Paulo state. Together, the plants can process 7 million tonnes of sugarcane. Their addition would raise Cofco’s crushing capacity in Brazil from 18.5 million to 25.5 million tonnes, placing the company among the country’s largest sugar and bioenergy operators alongside Raízen and BP Bioenergia.
Sugar output could rise to 2.2 million tonnes
Willian Orzari Hernandes, a partner at sugar and bioenergy consultancy FG/A, told Money Times that the acquisition was highly strategic for Cofco because the two mills have substantial sugar-production capacity. He estimated that the plants could add about 700,000 tonnes to Cofco’s annual Brazilian sugar production, lifting its total to approximately 2.2 million tonnes.
Hernandes said this volume would move closer to the quantity imported by China, arguing that the acquisition could help secure Chinese sugar supplies for the coming years. The deal therefore adds industrial capacity at the origin as well as greater control over a commodity flow connecting Brazil’s cane belt with the Chinese market. Cofco already operated four mills in São Paulo state—Catanduva, Potirendaba, Meridiano and Sebastianópolis do Sul—and a transshipment terminal in Votuporanga.
Deal follows Bunge-Viterra merger
Rio Vermelho and Nova Unialco entered Bunge’s portfolio through its merger with Viterra, completed in July 2025. Consultants cited by Money Times said Bunge has no strategic interest in the sugar business and noted that it had previously sold mills to BP. The disposal also comes as Brazil’s sugar and ethanol industry undergoes portfolio changes, including a restructuring and asset-sale process at Raízen, which is in an out-of-court recovery process.
Agribusiness consultancy Veeries estimates that the Cofco transaction could be worth about $350 million, based on a market valuation of approximately $50 per tonne of sugarcane-processing capacity. Fabio Meneghin, a Veeries partner, said Cofco may have paid a premium because the assets are considered high quality. The acquisition comes as sugar prices begin recovering after an extended period below production costs. Money Times reported that concerns about El Niño’s impact on global output have prompted funds to buy sugar futures aggressively in recent weeks, improving the market backdrop for assets with strong sugar-production potential.
