The world's largest brewer
Anheuser-Busch InBev SA/NV
), alias AB InBev, has partnered with agricultural chemicals
) to procure high-quality malting barley, a major raw material for
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
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
), both holding a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
SYNGENTA AG-ADR (SYT): Free Stock Analysis
ANHEUSER-BU ADR (BUD): Free Stock Analysis
LIMONEIRA CO (LMNR): Free Stock Analysis Report
GRUMA SA-ADR B (GMK): Free Stock Analysis
To read this article on Zacks.com click here.