SOJA3 Boa Safra Sementes

Boa Safra Sementes S.A. is a Brazilian company specialized in the production, processing, and commercialization of seeds, with a primary focus on soybeans. Founded in 2009 by Marino Colpo and Camila Colpo, the company emerged from the founders’ family experience in grain cultivation in the Center-West region. Over the years, Boa Safra has invested in professionalization, governance, and capacity expansion, evolving from a simpler corporate structure to a nationwide-scale operation. In 2020, the company was converted into a corporation (sociedade anônima) and obtained a category “A” publicly held company registration, completing its initial public offering of common shares in 2021 and having its shares listed on B3, in the Novo Mercado segment, under the ticker SOJA3.

Boa Safra Sementes’ business model is centered on the certified seed value chain, especially soybeans, but it also operates with corn, beans, wheat, sorghum, and forage seeds. The company acquires parent seeds from genetics companies that develop cultivars with genetic improvements and hold the intellectual property of these varieties. These parent seeds are passed on to approximately 500 integrated producers, who carry out cultivation and multiplication. After harvest, Boa Safra purchases the production that meets its quality criteria, processes and treats the seeds at its Seed Processing Units (UBS), and may apply different levels of Industrial Seed Treatment (TSI) before storing them in cold chambers and later selling them to resellers and rural producers.

The company’s core activity is concentrated in the soybean segment, which includes mainly soybean seeds and, to a lesser extent, soybeans in grain form. In 2024, this segment accounted for around 95% of net operating revenue, a proportion similar to that observed in 2023 and 2022, highlighting the economic predominance of soybeans in the company’s portfolio. Boa Safra also provides tolling services, processing seeds for third parties, as well as operating in a segment classified as “other,” which includes crop protection products and seeds of other crops. The company has consolidated a relevant position in the soybean seed market in Brazil, with an estimated market share of around 8% in 2024, based on CONAB data on planted area and excluding farm-saved seeds.

Production and logistics infrastructure is a core component of Boa Safra Sementes’ operations. The company has UBS units in Formosa and Cabeceiras (Goiás), Buritis (Minas Gerais), Primavera do Leste (Mato Grosso), and Jaborandi (Bahia), as well as two Bestway Seeds processing units in Uberlândia (Minas Gerais), in which it holds a significant stake. These units have refrigerated warehouses totaling more than 120,000 square meters of cold storage, operating with strict temperature and humidity control to preserve seed viability and germination rates. Additionally, Boa Safra maintains distribution centers in Sorriso, Campo Novo do Parecis, and Ribeirão Cascalheira (Mato Grosso), Paraíso (Tocantins), and Balsas (Maranhão), located near major grain-producing hubs to optimize logistics and delivery times.

Boa Safra’s products are differentiated not only by the genetic base acquired from specialized companies but also by the industrial treatments applied to the seeds. The company offers three TSI categories: Boa Safra Básico, which adds fungicide, insecticide, polymer, and drying powder, with optional use of inoculant; Boa Safra Top, which adds components such as rooting promoter, nutrition, and inoculant, increasing the number of components and the level of protection; and Boa Safra Premium, which includes, in addition to all Top inputs, a biological bionematicide crop protection product aimed at controlling nematodes in soybean roots. The growth in the volume of industrially treated seeds has been an important growth driver, with a significant increase in the number of treated big bags between 2018 and 2024.

The company operates in all major grain-producing regions of Brazil, with a consolidated presence in the Center-West, Southeast, South, North, and Northeast. Its own assets are concentrated in six states – Goiás, Bahia, Mato Grosso, Tocantins, Maranhão, and Minas Gerais – and are complemented by operations via leasing and full tolling in strategic areas, such as Água Fria de Goiás and developing regions in Paraná. The expansion strategy includes increasing soybean and corn seed production capacity, strengthening the distribution network, and entering new crops and sales channels, as evidenced by the acquisition of a stake in Bestway Seeds, the conversion of debentures into an equity interest in DaSoja, in Palmas (Tocantins), and the creation of Avra Sementes, operating in Mato Grosso, Tocantins, Goiás, and Minas Gerais.

The client base is diversified, with no significant revenue concentration in a single buyer, which reduces dependence on large specific groups. Boa Safra serves agricultural retailers and rural producers, offering seeds and industrial treatment services tailored to different soil and climate conditions. The relationship with around 500 integrated producers is a structural part of the business model, enabling geographic diversification of production and mitigation of climate risks, since the farms are located within a radius of up to approximately 300 kilometers from the UBS units. The company provides technical follow-up on crop development in these integrated areas, applying strict quality criteria before purchasing seed lots for commercialization.

Seed production and commercialization is a highly regulated activity in Brazil, which directly impacts Boa Safra Sementes’ operations. The company is subject to the National Seed and Seedling System (Sistema Nacional de Sementes e Mudas), established by Law No. 10,711/2003 and regulated by Decree No. 10,586/2020, which requires registration with the National Seed and Seedling Registry (RENASEM) for activities such as seed production, processing, storage, and trading. The Ministry of Agriculture and Livestock is the body responsible for coordinating and supervising these activities at the federal level, while states and the Federal District may establish complementary rules. The company is also subject to requirements from professional councils such as CREA, which demand corporate registration and the presence of agronomists or forest engineers as technical managers, in addition to compliance with environmental regulations involving licensing by competent agencies, registration of potentially polluting activities, and preparation of waste management plans.

In the financial and governance sphere, Boa Safra Sementes uses capital markets instruments and investment structures to finance its growth and asset management. The SOJA3 ticker represents common shares traded on B3, and the company also engages with the market through agribusiness receivables certificates (CRA) and an investment fund in agribusiness chains (FIAGRO), the Suno Agro FII – SNAG11, listed on B3. The company holds an interest in this fund and carries out transactions such as assignment of receivables and leasing of real estate assets for processing units and refrigerated warehouses, using this structure as a long-term financing source for its physical and operational expansion. In addition, joint ventures such as SBS Green Seeds, focused on the production of forage seed mixes and regenerative agriculture, indicate a move toward diversification and alignment with sustainability trends in Brazilian agribusiness.