"This investment makes good strategic sense for both parties," Wrightson group general manager of seed and grain John McKenzie said.
"We have common goals for the future and this alignment of interests sets the business up well for future growth and complements PGG Wrightson's existing South American operations well."
The move comes several years after Wrightson sold its management contract with NZ Farming Systems Uruguay, the dairy farmer it set up in 2006 in an attempt to buy cheap land in Uruguay suitable for dairy conversion and export NZ’s intensive farming techniques into South America.
In 2012, Singaporean commodities company Olam International bought 78% of Farming Systems, changing the agreement with Wrightson and opting out of a preferred supplier agreement with the company.
Agrocentro developed technology systems in meat production and forage-based seed production. It has four business units including the retail and distribution of agricultural inputs, farming, logistics and consulting. It employs 120 people and has eight retail branches.
Wrightson has upgraded its forecast for annual earnings twice this year, and expects annual operating earnings before interest, tax, depreciation and amortisation to be between $66 million and $69m in the year ended June 30, up from $58.7m a year earlier. It also warned weak farmer confidence may weigh on future sales.
The company's shares were unchanged at 47 cents and have gained 2.2c since the start of the year.
