Adecoagro S.A. | CIK:0001499505 | 3

  • Filed: 4/27/2018
  • Entity registrant name: Adecoagro S.A. (CIK: 0001499505)
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    • ifrs-full:DisclosureOfFairValueMeasurementOfAssetsExplanatory

    The following significant unobservable inputs were used to measure the Group´s biological assets using the discounted cash flow valuation technique:

    Description
     
    Unobservable
    inputs
     
    Range of unobservable inputs
     
    Relationship of unobservable
    inputs to fair value
     
     
     
     
    2017
     
    2016
     
     
    Sown land – sugarcane
     
    Sugarcane yield – tonnes per hectare; Sugarcane TRS (kg of sugar per ton of cane) Production Costs – US$ per hectare. (Include maintenance, harvest and leasing costs)
     
     
    -Sugarcane yield: 60-100 tn/ha
    -Sugarcane TRS: 120-140 kg of sugar/ton of cane
    -Maintenance costs: 500-700 US$/ha
    -Harvest costs: 9.0 -14.0 US$/ton of cane
    -Leasing costs: 11.4-14.4 tn/ha
     
    -Sugarcane yield: 60-100 tn/ha
    -Sugarcane TRS: 120-140 kg of sugar/ton of cane
    -Maintenance costs: 500-600 US$/ha
    -Harvest costs: 9.0 -14.0 US$/ton of cane
    -Leasing costs: 12.0-14.4 tn/ha
     
    The higher the sugarcane yield, the higher the fair value. The higher the maintenance, harvest and leasing costs per hectare, the lower the fair value. The higher the TRS of sugarcane, the higher the fair value.
     
    Sown land – crops
     
    Crops yield – tonnes per hectare; Commercial Costs – usd per hectare;
    Production Costs – US$ per hectare.
     
     
    - Crops yield: 1.5 – 5.1 tn/ha for Wheat, 4.0 – 8.0  tn/ha for Corn, 1.4 - 3.4 tn/ha for Soybean and 2.1-3.5 for Sunflower
    - Commercial Costs: 50-110 US$/ha for Wheat, 107-300 US$/ha for Corn, 172-176 US$/ha for Soybean and 10-37 US$/ha for Sunflower
    - Production Costs: 200-540 US$/ha for Wheat, 230-500 US$/ha for Corn, 250-350 US$/ha for Soybean and 230-350 US$/ha for Sunflower
     
    - Crops yield: 2.0 – 2.8 tn/ha for Wheat, 5.4 – 7.7  tn/ha for Corn, 2.7 - 3.8 tn/ha for Soybean and 1.5-2.1 for Sunflower
    - Commercial Costs: 66-97 US$/ha for Wheat, 150-225 US$/ha for Corn, 70-110 US$/ha for Soybean and 65-90 US$/ha for Sunflower
    - Production Costs: 170-250 US$/ha for Wheat, 350-550 US$/ha for Corn, 270-400 US$/ha for Soybean and 200-300 US$/ha for Sunflower
     
     
    The higher the crops yield, the higher the fair value. The higher the commercial and direct costs per hectare, the lower the fair value.
     
    Sown land – rice
     
    Rice yield – tonnes per hectare;
    Commercial Costs – usd per hectare;
    Production Costs – US$ per hectare.
     
    -Rice yield: 5.0 -5.9 tn/ha
    -Commercial Costs: 3-9 US$/ha
    -Production Costs: 750-1,000 US$/ha
     
    -Rice yield: 5.1 -6.1 tn/ha
    -Commercial Costs: 8-15 US$/ha
    -Production Costs: 750-1,000 US$/ha
     
    The higher the rice yield, the higher the fair value. The higher the commercial and direct costs per hectare, the lower the fair value.
     
    The following table presents the Group´s biological assets that are measured at fair value at December 31, 2017 and 2016 (see Note 17 to see the description of each fair value level):
     
    2017
     
    2016
     
    Level 1
     
    Level 2
     
    Level 3
     
    Total
     
    Level 1
     
    Level 2
     
    Level 3
     
    Total
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Cattle for dairy production
    —

     
    8,989

     
    —

     
    8,989

     
    —

     
    6,584

     
    —

     
    6,584

    Breeding cattle
    3,713

     
    —

     
    —

     
    3,713

     
    2,034

     
    —

     
    —

     
    2,034

    Other cattle
    —

     
    652

     
    —

     
    652

     
    —

     
    642

     
    —

     
    642

    Sown land – sugarcane
    —

     
    —

     
    93,178

     
    93,178

     
    —

     
    —

     
    82,380

     
    82,380

    Sown land – crops
    —

     
    —

     
    31,745

     
    31,745

     
    —

     
    —

     
    28,189

     
    28,189

    Sown land – rice
    —

     
    —

     
    29,717

     
    29,717

     
    —

     
    —

     
    25,575

     
    25,575

    When no quoted prices in an active market are available, fair values (particularly with derivatives) are based on recognized valuation methods. The Group uses a range of valuation models for this purpose, details of which may be obtained from the following table:
    Class
     
    Pricing Method
     
    Parameters
     
    Pricing Model
     
    Level
     
    Total
     
     
     
     
     
     
     
     
     
     
     
    Futures
     
    Quoted price
     
    —
     
    —
     
    1
     
    3,911

     
     
     
     
     
     
     
     
     
     
     
    Options
     
    Quoted price
     
    —
     
    —
     
    1
     
    54

     
     
     
     
     
     
     
     
     
     
     
    Foreign-currency interest-rate swaps
     
    Theoretical price
     
    Swap curve;
    Money market interest-rate curve;
    Foreign-exchange curve.
     
    Present value method
     
    2
     
    (34
    )
     
     
     
     
     
     
     
     
     
     
    3,931

    The following tables present the Group’s financial assets and financial liabilities that are measured at fair value as of December 31, 2017 and 2016 and their allocation to the fair value hierarchy:
     
     
     
    Level 1
     
    Level 2
     
    Total
    Assets
     
     
     

     
     

     
     

    Derivative financial instruments
    2017
     
    4,463

     
    20

     
    4,483

    Derivative financial instruments
    2016
     
    2,789

     
    609

     
    3,398

     
     
     
     
     
     
     
     
    Liabilities
     
     
     

     
     

     
     

    Derivative financial instruments
    2017
     
    (498
    )
     
    (54
    )
     
    (552
    )
    Derivative financial instruments
    2016
     
    (1,196
    )
     
    (5,872
    )
     
    (7,068
    )