JOPA3 Josapar

Josapar – Joaquim Oliveira S.A. Participações is a privately held Brazilian company, with common and preferred shares traded on B3 under the tickers JOPA3 and JOPA4. The group’s origins date back to 1911, when Joaquim Oliveira emigrated from Portugal to Pelotas (RS) and began commercial activities in warehouses. In 1922, he became the sole owner of the “Ao Tira Fogo” warehouse, a milestone considered the beginning of the business history that would later give rise to Josapar, which was formally incorporated as a corporation in 1952. Over the following decades, the company expanded its scope of operations, moving into self-service retail, agriculture, livestock, and processed food production, with active participation from the second and third generations of the Oliveira family in management.

The diversification journey began early, with expansion into other states, acquisition of farmland and a roasting facility for the production of Café Flor, as well as entry into segments such as industrial adhesives and organic fertilizers during World War II. In the 1950s, the group formed Granja 4 Irmãos S.A., focused on rice cultivation and cattle raising, reinforcing its connection to the rice value chain. In 1953, the controlling shareholders opened the Supermercado Real in Porto Alegre, considered the first supermarket in Rio Grande do Sul, an experience that strengthened their know-how in distribution and self-service retail. The decisive shift toward the food industry occurred with the founding of Suprarroz in 1973 and, in the same year, the creation of the Arroz Tio João brand, which would become Josapar’s main brand asset in the milled rice segment.

In its current business model, Josapar is described as one of the largest rice millers in Brazil, focused on the processing, industrialization, and marketing of rice, beans, and other packaged foods. The company is not a primary producer of grains, operating mainly from the reception of paddy rice and other raw materials, and performing drying, grading, storage, milling, and packaging. The company holds a relevant competitive position in several regions of the country, with emphasis on the Tio João brand, which leads the premium white and parboiled rice segment in some Brazilian states. In addition to food operations, the group controls Real Empreendimentos S.A., focused on real estate sales, rentals, and shopping mall operations, an activity that accounts for a minor share of consolidated revenue.

Josapar’s operating segments reflect a diversified portfolio, but with a clear predominance of rice. In 2024, the white rice segment accounted for 56% of total revenue, while parboiled rice represented 10%. Semi-prepared products, which include both prepared rice lines and the soy division (SupraSoy and Soy+), contributed 7% of revenue. Organomineral Fertilizer NPK Nº1 accounted for 23% in 2022, with a decreasing share in subsequent years, while beans, real estate, and other products represented smaller fractions of sales. Historically, white rice has been the main revenue generator, followed by parboiled rice and higher value-added products associated with the Tio João and Meu Biju brands.

Josapar’s brand portfolio is structured to serve different price ranges and consumption profiles. The Tio João brand covers white, parboiled, whole, and organic whole rice, as well as higher value-added lines such as Tio João 7 Grãos, Variedades Mundiais, Cozinha Fácil, Cozinha & Sabor, rice flour, and cake and brownie mixes. In 2022, the company entered the black bean segment with the Tio João brand, initially in Brasília, expanding in 2024 to a supermarket chain in Rio de Janeiro. The Meu Biju brand operates in the rice and bean segment in multiple varieties, positioned as a good cost-benefit option and competitive protection on the shelf against popular brands. The portfolio also includes smaller brands such as Tio Mingote, No Ponto, Nikkoh, Beleza, Impacto, Bataclan, and Pedrinho, as well as the exclusive distribution in Brazil of Nova Oliva extra virgin olive oils.

In plant-based protein products, Josapar has developed and marketed the SupraSoy line since the mid-1990s, based on a technology partnership originally established with Grupo PTI, now DuPont. SupraSoy consists of powdered foods made with isolated soy protein, enriched with vitamins and minerals, gluten-free and lactose-free, targeting a wide audience including children from one year of age, adults, and the elderly. Complementing this, the Soy+ brand represents an instant powdered soy-based beverage, available in different flavors. These products fit into the diversification strategy toward higher value-added foods with functional attributes, although they still represent a smaller share of revenue compared to the core milled rice business.

Josapar’s industrial and logistics infrastructure is mostly located in Brazil, with a focus on the South region and presence in other key consumer and agricultural production hubs. The company has six industrial units, two of which are in Pelotas (RS), in addition to plants in Itaqui (RS), Jaboatão dos Guararapes (PE), and Cristalina (GO). Units in Vila Princesa (Pelotas) and Itaqui also operate as reception, storage, and drying centers for raw materials, as do the facilities in Santa Vitória do Palmar (RS) and Dom Pedrito (RS), which are dedicated exclusively to these stages. The logistics network is complemented by eight distribution centers in Cajamar (SP), Brasília (DF), Contagem (MG), Belém (PA), Embu das Artes (SP), Simões Filho (BA), Itaguaí (RJ), and Caucaia (CE), helping to broaden the reach of the company’s products across all regions of the country. Josapar’s rice exports, which began in 1999 with one-off shipments to Japan, now reach more than 40 countries in the Americas, the Middle East, and Africa, although foreign revenue remains below 10% of gross revenue.

Josapar’s production process is typical of the rice milling industry, involving dehusking, polishing, separation, electronic sorting, glazing, and packaging, with an additional hydrothermal treatment flow in the case of parboiled rice. The company does not own rice fields, preferring to foster partner producers through its agricultural inputs unit, which supplies fertilizers – including Organomineral Fertilizer NPK Nº1 – and provides technical support for crops. This model reinforces Josapar’s role as the industrial link in the chain, connecting agricultural production, concentrated mainly in Rio Grande do Sul, to the domestic consumer market. In regulatory terms, the company’s main activities are not subject to specific economic regulation by sector agencies, and the company states that it does not currently disclose structured environmental, social, and governance (ESG) information, even though it is already a listed share issuer on B3.

On the customer side, Josapar has a highly diversified base, with no single buyer accounting individually for more than 10% of net revenue in its recent fiscal years, which indicates strong exposure to multiple food retail chains, cash-and-carry wholesalers, and other fast-moving consumer goods distribution channels. The combination of well-established brands in rice, beans, and higher value-added foods with a nationwide distribution network, industrial presence in different states, and a small slice of international revenue characterizes the company’s operating profile. Thus, Josapar is positioned in the Brazilian market as a processed foods company with a predominant focus on milled rice, complemented by beans, soy-based products, imported olive oils, and agricultural inputs tied to its main supply chain, all under the corporate structure listed on B3 through JOPA3 and JOPA4 shares.