Sumitomo Corporation of Americas and Papalotla Form Strategic Partnership to Support Climate-Smart Livestock Solutions
NEW YORK, July 29, 2025 /PRNewswire/ -- Sumitomo Corporation of Americas ("SCOA") and Grupo Papalotla today announced a strategic partnership to accelerate the adoption of climate-smart livestock systems globally. The collaboration begins with a growth-focused investment by SCOA in Grupo Papalotla, with a strong focus on their Brazilian subsidiary, Tropical Seeds do Brasil, a leader in hybrid pasture seed innovation.
Founded in 1992, Papalotla holds an exclusive license with CIAT, a Colombian research institute, for hybrid pasture seed varieties with functional traits such as drought and flood tolerance. The Company's operations span seed selection, multiplication through contract growers, and coating for improved germination and nutrient performance. The company also brings strong know-how in climate and soil adaptation, grower support, and technical sales. Papalotla's strategy is to distribute its hybrid pasture seeds through agricultural input retailers including Agro Amazônia ("AAPA"), a wholly owned subsidiary of Sumitomo Corporation located in Brazil.
Brazil has the world's second-largest cattle population (223 million beef and 16 million dairy cattle)1, ranks #2 in beef production and #1 in beef exports globally.2 Livestock farming is predominantly pasture-based, with 160 million hectares of grazing land supporting 90% of beef production (EMBRAPA). As part of its national strategy to restore degraded pasturelands, the Brazilian government aims to recover approximately 30 to 40 million hectares of degraded pasture by 2030, rather than expanding total pasture area. This effort creates a favorable environment for hybrid pasture seeds, which can substantially increase productivity per hectare by enhancing pasture quality and resilience3.
"This initiative stems from Sumitomo Clean Farming Team's ongoing efforts to source high-performance livestock inputs, such as natural feed additives and hybrid pasture seeds, that support both greenhouse gas (GHG) reduction and enhanced animal productivity," said Ryosuke Yanagi, Director, Department Head of Agrifood Innovation Department, Sumitomo Corporation do Brasil. "As part of this strategy, Sumitomo engaged with Papalotla in 2023. This investment will reinforce our partnership with AAPA and enable closer collaboration with key industry players, with whom we aim to promote contract farmer support services, including the adoption of advanced inputs, rehabilitation of degraded pastureland, and the transition to more sustainable livestock production systems."
This partnership also marks a major milestone in Grupo Papalotla's journey to expand market access, enhance sustainable livestock production, and scale the environmental and social impact of its technologies across all tropical and subtropical regions worldwide.
"This investment by Sumitomo Corporation not only validates the strength of our tropical pasture technologies, but also reinforces our shared vision for transforming livestock systems through innovation, sustainability, and inclusive growth," said Andrei Nicolayevsky, CEO of Grupo Papalotla. "Together, we will expand our reach, improve land productivity, and empower producers to meet growing food demands while regenerating soils and reducing emissions."
The partnership will accelerate the deployment of high-performance Brachiaria hybrids and integrated pasture systems, contributing to:
- Expanded market access for small and medium livestock producers
- Global tropical and subtropical reach, including Latin America, Africa, and Asia
- Leadership in ESG, supporting carbon-smart milk and beef production, improved water use, and rural economic inclusion
With more than 25 years of experience, Grupo Papalotla's science-based approach has enabled dramatic improvements in productivity and sustainability. Its tropical forage hybrids can deliver up to four times the biomass of traditional pastures, improving animal performance while restoring degraded lands and reducing greenhouse gas emissions.
About Grupo Papalotla
Grupo Papalotla is a pioneer in the breeding, production, and distribution of improved tropical forage seeds. Operating across Latin America, Africa, and Southeast Asia, the company works with researchers, distributors, and producers to accelerate sustainable intensification of pasture-based livestock systems. For more information, visit www.grupopapalotla.com
About Sumitomo Corporation of Americas
Established in 1952 and headquartered in New York City, Sumitomo Corporation of Americas has 9 offices in major U.S. cities, 4 in Canada, and 2 in Mexico. As the largest subsidiary of Sumitomo Corporation, Sumitomo Corporation of Americas is a key player in multinational projects, international investments, and global product distribution. Its core businesses include Energy, Automotive, Social Infrastructure, Agri-food and Life Science, Construction and Transportation Systems, Real Estate, Mineral Resources, and Energy Innovation. For more information, visit www.sumitomocorp.com.
1 2023 IBGE Report
2 USDA Data Set
3 Brazilian Ministry of Agriculture: PNCPD Program and Embrapa reports on pasture recovery and productivity improvements
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SOURCE Sumitomo Corporation of Americas