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Known for sustainable practices, the company’s Mato Grosso farm shifted from the largest cattle operation after property division

11/12/2024


Fazenda Roncador, located in Mato Grosso’s Araguaia Valley, once held the title of Brazil’s largest cattle ranch. That status, however, has changed: over the past three years, the three Dalla Vecchia siblings, heirs to the estate, have completed the intricate process of dividing the property.

Previously spanning 152,000 hectares—about the size of the city of São Paulo—Roncador has been in the family since 1978, when their grandfather, Pelerson Penido, founder of the CCR highway concessionaire, acquired it. Although it no longer claims the title of Brazil’s largest, Roncador remains a model of sustainable cattle ranching in the Amazon. This reputation is so well-regarded that JBS CEO Gilberto Tomazoni often references Roncador in international forums as a shining example of responsible ranching.

Following the division, Pelerson Penido Dalla Vecchia retained management of the newly defined Fazenda Roncador, transforming it from a loss-making entity into a profitable operation renowned for environmental stewardship. The property still preserves nearly 50% of its native forest cover and has used an integrated crop-livestock production system for over 15 years, with a significant reliance on biological inputs.

Mr. Dalla Vecchia has restructured the management of the 53,000-hectare “new” Roncador, forming a board of directors that includes Consultant Luiz Bouabci, Professor Wilma Bolsoni, and Zootechnician Antônio Chaker.

In addition to Fazenda Roncador in Querência, Dalla Vecchia retained a 50% stake in Fazenda Mantiqueira in São Paulo’s Pindamonhangaba, leasing the other half from his sister under a 20-year agreement. He also heads Calcário Vale do Araguaia, a mining business with operations in Cocalinho and Nova Xavantina, Mato Grosso.

“Mining is critical for us,” says Mr. Dalla Vecchia, noting that it generates profit and supplies materials for Roncador’s productivity experiments. Through mining, Roncador tests crop growth without conventional fertilizers, using only calcium silicate rock powder and cattle manure.

Though the farm’s structure and size have shifted, its commitment to innovation remains constant. Mr. Dalla Vecchia sees no contradiction in using Roncador as a research platform while pursuing profitability. “We run many tests, measure everything, but never compromise results,” he states. “And we never chase profit at any cost.”

The farm is also investing in irrigation pivots covering 4,000 hectares, with a capital outlay between R$80 million and R$90 million, providing “insurance” against climate variability. Additionally, Roncador is setting up small, modular soybean crushers to increase the amount of protein meal fed to cattle, which will, in turn, improve manure quality for crop nutrition.

Roncador’s many initiatives, most of them experimental, stand in contrast to the “simplify-and-scale” model often championed in corporate strategy. For many investment funds, startups, and economic players, simplification and the ability to easily replicate models are essential to business growth and success. However, Mr. Dalla Vecchia takes a different approach: while he scales up ideas that prove effective, his projects start with rigorous data analysis and statistics—a method uncommon in many agriculture sectors, especially livestock. “We undertake these projects because they generate [financial] results. If a concept looks good on paper but doesn’t hold up financially, it has no place here,” he states.

While Mr. Dalla Vecchia advocates for biological inputs, Roncador’s production is neither organic nor intended to be. “We use chemicals when needed,” he says. “As the harvest progresses, pests concentrate in the remaining unharvested areas, intensifying pressure in those zones. If there’s a fungal threat at that point, we apply fungicide.” To explain the approach, he draws a parallel with human healthcare: “It’s like taking antibiotics when you’re ill—you avoid it if you can, but you don’t refuse it when necessary.”

*By Patrick Cruz, Globo Rural — São Paulo

Source: Valor International

https://valorinternational.globo.com/