The world’s largest brewer Anheuser-Busch InBev SA/NV (BUD), alias AB InBev, has partnered with agricultural chemicals company Syngenta AG (SYT) to procure high-quality malting barley, a major raw material for manufacturing beer.
Per the agreement, Syngenta will provide growers with the best quality seeds of barley and assist them with tailored growing practices to improve crop production. Syngenta will not only provide training but also assist with the latest technology and expert advice from skilled agronomists on agronomy and sustainable farming techniques.
This will enable growers to augment their yields and in turn increase incomes while delivering the best quality crop to AB InBev for the production of first-rate beer that caters to exacting standards. Moreover, it will enable AB InBev to meet the growing demand for its products.
Additionally, AB InBev’s partnership with Syngenta demonstrates its efforts to keep alive its vision of being “the Best Beer Company Bringing People Together For a Better World.” The company is holding the interest of crop growers by helping them expand their business along with the encouragement to produce quality barley.
AB InBev works with over 15,000 growers via ancient barley programs across the United States, Canada, Mexico, Brazil, Uruguay, Argentina, China and Russia. With this deal, the company not only expects to boost the demand for beer but also come to the benefit of others involved by applying the principle of shared success.
The company plans to begin with the first phase of the partnership in Argentina, where it will work with 160 growers in about 14,000 hectares of land. Going forward, the company expects to extend the joint offer to other regions where there is an opportunity to enhance value for growers.
Both Anheuser-Busch and Syngenta currently carry a Zacks Rank #3 (Hold). Better-ranked stocks in the agricultural sector include Gruma S.A.B. de CV (GMK) and Limoneira Company (LMNR), both holding a Zacks Rank #2 (Buy).
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