Usina Cerradão: Powering Sustainable Growth in Brazil’s Sugar and Ethanol Sector

Founded in 2006 by the Queiroz and Andrade families - both members of the Copersucar cooperative - Cerradão began operations in 2009/10 with a modest ethanol-only output of 0.8 million tonnes. Over the next years, the company:

This growth has been underpinned by a strong foundation in sugarcane industrialization and a commitment to innovation.

Cerradão is now entering a new phase of growth. One that combines capacity expansion with a strategic focus on raw material security and land rehabilitation. Plan is to expand from the current 6.3 mln tons of sugarcane crushed to reach total crushing capacity of 8.0 mln tons by 2028. To support its expansion, Cerradão is investing in own sugarcane production in rented area keeping up with the desired percentage of 50% own sugarcane and 50% sugarcane from third party, maintaining a diversified raw material sourcing strategy.

Of the total capex, Cerradão’s cane plantation for this crop 25/26 alone should amount to BRL 100 mln. With this Agri3/Rabobank deal, we have financed a relevant portion of such annual cane field plantation requirement, making possible not only scaling production, but rather ensuring long-term sustainability and resilience in raw material sourcing.

A key part of this shift involves converting 3,700 hectares of degraded pastureland (currently under lease) into high-yield sugarcane fields. This transformation will be guided by a sustainable agriculture plan, including reduced chemical input, lower water usage and improved soil health and biodiversity. This approach not only secures raw material supply but also restores degraded ecosystems and enhances land-use efficiency.

Rodrigo Rezende, Finance/Administration Manager at Usina Cerradão:

"For us at Usina Cerradão, this project represents much more than the expansion of production capacity. It symbolizes the consolidation of a long-term vision, where growth and sustainability go hand in hand. We believe that restoring degraded areas, investing in technology, and ensuring the balance between our own sugarcane and third-party sugarcane are fundamental pillars to ensure the company's competitiveness while contributing to environmental preservation and regional development. The support from Rabobank and the Agri3 Fund is significantly important to this project, enabling an innovative financing model that values responsible practices and positive impact. We are proud to move forward with partners who share our values and who believe, just like us, that it is possible to generate prosperity while respecting the environment and the communities around us."

To realize this vision, Cerradão required BRL 80 million in long-term financing. However, traditional collateral structures were not feasible due to the leased nature of the land.

Rabo Partnerships’ Blended Finance team has, together with their partner Agri3 Fund (an impact-driven fund focused on sustainable agriculture), supported Rabobank Brazil in structuring a 6-year term facility tailored to Cerradão’s needs.

As part of the financing agreement, Cerradão committed to:

Cerradão’s expansion is more than a business decision; it’s a blueprint for regenerative agribusiness. By combining industrial growth with environmental stewardship and innovative finance, the company is:

Usina Cerradão’s story is a demonstration to what’s possible when vision, partnership, and sustainability come together. As the company enters its next chapter, it stands as a beacon for others in the sector - proving that growth and responsibility can go hand in hand.

Maria Ferrante – Relationship Manager Rabobank Brazil:

“It was during one of my first visits to Cerradão that I have realized that family had a special view on Sustainability. Discussing the family’s decision of setting up a sugar & ethanol plant back in 2006 to present time and how Rabobank could support them to reach Cerradão’s full potential crushing capacity; that I had the opportunity to learn about their project Nascentes do Cerrado (revitalize spring water in their region) and the project to hire refugees from Venezuela. At that moment, I knew that Cerradão would be an ideal client for us to partner with Agri3 and structure a deal that would have a true impact on their region and incentivize Cerradão to adopt an even more sustainable way of working. After months of dedication from all parties involved to make this deal happen, I am glad to see that this deal aligns interests of all parties involved with Rabobank’s mission of “Growing a better world together”. This deal certainly had the power to strenghten our relationship with Cerradão, set an important milestone for Cerradão to reinforce its commitment regarding Sustainability and, as for me, it make my job more purposeful.”