Interview with Mariano Aguilera Tarradelles, President of Guabirá

17 Jun Interview with Mariano Aguilera Tarradelles, President of Guabirá

Guabirá has evolved far beyond traditional sugar production, with the company now involved in beverages and enjoying a strong presence in energy and sustainability. How would you define the firm’s business model today and what are its main areas of expansion?

As a company, Guabirá will celebrate its 70th anniversary this November here in Santa Cruz. The company is a corporation consisting of nearly 1,850 shareholders: producers, workers and people who are neither. It has around 1,500 sugarcane producers and more than 1,000 employees. Approximately 10,500 people are directly linked to the company and around 50,000 people depend on us one way or another. Guabirá is based in Montero and began life back in 1956 as a state-owned sugar mill with a daily milling capacity of 1,000 tons. In 1975, it increased this capacity to 5,000 tons per day. In 1993, Guabirá left state control when it was purchased by producers and workers under a mixed corporation model with the government.

Today, we have a daily mill processing capacity of 25,000 tons, with the aim to reach 30,000 tons within the next two years. Guabirá not only produces sugar; it produces different types of sugar and different types of alcohols, especially anhydrous alcohol, neutral alcohol, extra-neutral alcohol and industrial alcohol. We produce whatever the client requires, both for the domestic market and for exports. We also make liquors: rum, vodka and gin. This year we are relaunching all our products with a new image, new bottles and a much more modern presentation. These are products recognized nationally and internationally for their quality and prestige.

Guabirá is not just the sugar mill. There is also Inversiones Guabirá. Within this division, we have Guabirá Energía, which produces electrical energy for the National Interconnected System. We sell 21 megawatts of clean energy to the national grid and 21 megawatts is consumed by the mill itself. We also have Guabirá Ración Total, dedicated to cattle feed for breeding, rearing, fattening and dairy production. At the same facility, we operate a soybean processing plant where we produce soybean meal and soybean oil, as well as a mineral salts and nutritional supplements plant for the livestock sector.

We provide 90-day financing with no financial cost to cattle fatteners because we are also part of Bovisa, the most modern slaughterhouse in Bolivia, which was recently inaugurated. We participate in that venture with Grupo Bedoya, Grupo Hekler and Grupo Sofía. In the agricultural sector, we work with sugarcane, soybeans, sorghum and corn, and are always open to continuing to grow because production is essential. Meanwhile, Inversiones Guabirá also has a paper industry that produces 60 tons of kraft paper per day. In addition, we have Mantrax, a heavy equipment and transportation company that provides services to the mill and the productive sector: land leveling, drainage, heavy machinery and dump trucks, among others. Guabirá is a company with an almost completely circular production system. We waste absolutely nothing. All residues, such as filter cake and alcohol vinasse, are turned into organic compost that returns to the fields. More than 30,000 tons of compost are returned to producers every year. We also use vinasse irrigation. We are the only sugar mill in Bolivia — and one of approximately 15 flex mills in South America — capable of producing alcohol from both sugarcane and cereals. In addition, the byproduct of cereal alcohol production is used for cattle feed, ultimately becoming protein through meat production.

As you can see, Guabirá is a highly diversified company. We have a sugarcane research center developed jointly with the productive sector, with an annual investment of $2.7 million and top-level technology. We work extensively on environmental issues, biological controls and reductions in sugarcane burning, as well as variety development. We have more than 2,000 varieties, and 70% of the varieties used in the country are produced by us, without charging royalties. Through the Guabirá Sugarcane Growers Union, we provide practically everything the agricultural sector needs: fuel, insecticides, herbicides and financing for planting, renewal, sugarcane expansion and harvest preparation. We have a very interesting closed-cycle system, supported by financing from private and public banking institutions at national and international levels, thanks to the credibility, honesty and transparency with which we operate.

Our goal is to be the best. We work with total support for the productive sector and with integrated technology from planting, harvesting and transportation onward. Today, sugarcane producers can access all their field information directly from their cell phones: yields, sucrose levels and production data, thanks to the support of the mill and the Guabirá Sugarcane Growers Union.

Speaking of all these products you are launching, are you already exporting to the US?

At present, we only have the American sugar export quota, which is very small. However, we are willing to export everything the US wants, whether it be liquors, sugar or alcohol.

In terms of cooperation, would you be ready for some kind of PPP or for people who may want to come and invest for future expansion?

As I mentioned, we plan to boost the mill’s daily capacity by 20% to 30,000t by 2028. In addition, we are investing in a new industry – one similar to what we already have – and could indeed be open to foreign and domestic investments. We are open because we want to continue to grow.

You mentioned Guabirá has become one of the few flex mills in South America capable of producing alcohol from both sugarcane and cereals. What impact has this transformation had on the company’s competitiveness?

It makes us more competitive, for sure, because we use our own energy, which is fundamental for cereal production. This helps complement production and allows us, after the sugarcane harvest, to continue with a cereal alcohol production season.

Speaking of alcohol, what consumption trends did the company identify that led it to invest in this new beverage line?

Ethanol in the country has been fundamental. The entire industry is supplying more than 200 million liters of ethanol to the state each year, saving foreign currency reserves and lowering gasoline costs. This also contributes to boosting the quality of our gasoline.

How important is technological innovation in maintaining the competitiveness of Bolivia’s sugar-energy sector?

Technology is what is driving all our progress. Automation is fundamental. We have undergone many transformations and will continue advancing until we have an industry that is fully automated, incorporating all the scientific technology available worldwide.

Do you have any organization or a way of helping young people integrate into your sector?

Within its social responsibility area, Guabirá has very broad participation. We have a school with more than 750 students, funded by the mill, for the children of workers, producers and people from surrounding areas. We also provide 10 fully funded university scholarships at private universities. In addition, we support institutions that provide social services in the department. We also support sports in different disciplines, such as motor sports, cycling and motorcycling.

In addition, we have a first-division football team that bears the name Guabirá and has our support. Internally, we have over 20 football teams promoted by the mill, encouraging interdepartmental competitions and sports activities. In terms of social responsibility, we carry out many activities. For example, we organize a campaign called “Lose Weight to Gain Health,” aimed at people who are overweight. Medical checkups are conducted, participants are monitored over a six-month period, and the program concludes with a race. This year, 382 people participated. We also constantly collaborate with the community. When there are floods or emergencies, the Guabirá team is there providing support. The firm participates in cleaning campaigns, collection drives and various community initiatives, always working together with the municipality and the local population. In addition, we contribute to the beautification of the city and municipality with the industry’s own resources. We also provide medical insurance for seasonal harvest workers – especially sugarcane cutters – and support different sectors that do not have medical coverage by helping provide insurance.

In general, we maintain a very important social role alongside traffic authorities, police, municipalities and the regional government, collaborating on highways, roads, and different social support and construction projects for the community.

How would you like to attract the attention of USA Today readers to the company, the region, and the country in general?

As a Bolivian businessman from Santa Cruz, I believe it is fundamental to keep the doors open for investment in our country, especially in the sectors we know best: agriculture, livestock and agroindustry. We know the world will never stop eating, and land does not multiply, so there are tremendous opportunities for investment and growth in Bolivia, particularly in the agroindustrial sector, whether with us or with other companies in the country. It is true that bad news is what circulates most around the world. But there is also good news. Despite all the social and economic problems Bolivia is facing — the dollar issue, fuel shortages and other difficulties — we are an industry that never stops growing. We continue with the spirit of investing and believing in our country.

Would you like to add any final message?

Yes, a big hug to everyone. As they say, one of the defining traits of the people of Santa Cruz is hospitality. We hope you visit us, come share time with us and enjoy Santa Cruz, the beauty of the women of Santa Cruz, and our products as well. We would love to share a good liquor with you — a Cayana, a vodka — together with Guabirá. We are truly one big family made up of thousands of people. We are the number one company in the sector in Bolivia and feel proud and happy because recently we received a prestigious award that celebrated the fact that we are the number one agroindustry company in the country.