Adecoagro S.A. | CIK:0001499505 | 3

  • Filed: 4/27/2018
  • Entity registrant name: Adecoagro S.A. (CIK: 0001499505)
  • Generator: Workiva (WebFilings)
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1499505/000162828018005268/0001628280-18-005268-index.htm
  • XBRL Instance: http://www.sec.gov/Archives/edgar/data/1499505/000162828018005268/agro-20171231.xml
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    • ifrs-full:DisclosureOfJointVenturesExplanatory

    Investments in joint ventures
     
    The table below lists the Group’s investment in joint ventures for the years ended December 31, 2017, 2016 and 2015:
     
     
    % of ownership interest held
    Name of the entity
    Country of
    incorporation and operation
    December 31, 2017
    December 31, 2016
    December 31, 2015
    CHS AGRO S.A. (i)
    Argentina
    50
    %
    50
    %
    50
    %

     
    On February 26, 2013, the Group formed CHS AGRO, a joint venture with CHS Inc. CHS Inc. is a leading farmer-owned energy, grains and foods company based in the United States. The Group holds a 50% interest in CHS AGRO. On October 2014, CHS AGRO finished its sunflower processing plant in the city of Pehuajo, Province of Buenos Aires, Argentina.
     
    The following amounts represent the assets (including goodwill) and liabilities, and income and expenses of the joint ventures:
     
    2017
     
    2016
    Assets:
     

     
     

    Non-current assets
    7,931

     
    17,185

    Current assets
    8,882

     
    9,316

     
    16,813

     
    26,501

    Liabilities:
     

     
     

    Non-current liabilities
    22,002

     
    22,000

    Current liabilities
    19,197

     
    15,273

     
    41,199

     
    37,273

    Net assets of joint venture
    (24,386
    )
     
    (10,772
    )
     
     
    2017
     
    2016
     
    2015
    Income
    14,879

     
    9,390

     
    14,201

    Expenses
    (22,657
    )
     
    (16,048
    )
     
    (22,934
    )
    Loss before income tax
    (7,778
    )
     
    (6,658
    )
     
    (8,733
    )

     
    The shares in the joint ventures were not publicly traded for any of the years presented.
     
    There are no contingent liabilities relating to the Group’s interest in the joint ventures, and no contingent liabilities of the ventures themselves.
     
    According to the laws of certain of the countries in which the Group operates, 5% of the profit of the year is separated to constitute legal reserves until they reach legal capped amounts (20% of total capital). These legal reserves are not available for dividend distribution and can only be released to absorb losses. The Group’s joint ventures have not reached the legal capped amounts.

    The Group guarantees some financial debt of CHS AGRO for an amount of $9.8 million.