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The new Sos buries the “Proyecto Tierra”

What was Salazar brothers’ pride, and the way of promoting the super-intensive in the world, was officially rejected by the new board of directors “because its development is not a priority in this moment”

Only a big multinational could afford a project worth 8 to 10 million euro per year, with uncertain future profits.
The dream of the Salazar brothers was not a mystery: unify production and commercialization in one, big corporation.

The project aimed at using a controlled company to buy properties, start the production, then sell it to investors who were supposed to pay a “management tax” for the care of olive groves and the guaranteed purchase of the entire production, by a controlled owned by Sos. To date, 5.400 hectares were bought, but only 2.400 were planted.

The proposed model was the super-intensive one, entirely mechanized, with a clearly defined and detailed business plan proposed not only to the investors in “Proyecto Tierra”, but promoted in the whole world, especially in the new world, seen as the future of olive cultivation.

The stated goal was to achieve the 10.000 planted hectares per year, in order to cover 30% of the olive oils needs of the Sos group, by the first ten years. An ambitious plan, whose framework had been known for a while, but whose recent revelations confirm the monopolistic ambitions of the Salazar brothers. Through unchangeable contracts and through the satisfaction of such a relevant demand of the oil needs of the company, the lobbying power of the Sos group on the market would have further increased. But the “Proyecto Tierra” is already a thing of the past, due to the rebuttal by the new management.

The new board of trustees has stopped the project “because its development is not a priority in this moment” and for its too long maturation period. It is a reverse that should be considered in the light of the debt renegotiation which began after the sensational abandon of the Sos group by the salazar brothers and the ensuing scandal.

Mariano Pérez Claver was assigned the task of define the structure of the 200 million euro capital raise necessary to compensate for the 2008 losses and to cover the funds transfer that Jesus and Jaime Salazar decided, and which led to their firing last April.

by Ernesto Vania
02 november 2009, Technical Area > Olive & Oil

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