Privatization CEASAMINAS - Minas Gerais State’s agricultural products distribution center

CEASAMINAS is a mixed-capital company under the supervision of the Ministry of Agriculture, Livestock and Food Supply, in which the Union holds 99.57% of the voting shares due to a process of renegotiation of the Federal Government's debts with the State of Minas Gerais in the 90's. It is a company that has its headquarters, domicile and forum in the city of Contagem / Minas Gerais. He manages six warehouses in Minas Gerais in the counties of Contagem, Greater Belo Horizonte, Juiz de Fora, Caratinga, Governador Valadares, Uberlândia and Barbacena.

Main characteristics of CEASAMINAS assets are:
• The wholesale food market in Minas Gerais is one of the largest in the country, largely concentrated in the Grande Belo Horizonte unit.
• In 2016, 2.5 million tons of products were marketed in the six warehouses of CEASAMINAS.
• In November 2016, the company had 231 employees.
• In 2016, staff costs accounted for 66% of total expenditures
• In 2016, 91% of the company's revenues originated from a Use Concession Agreement (R $ 30.2 million).
• CESASAMINAS counts as main revenue the concession of use of areas for a limited time.
• In 2016, the company reported a profit of R $ 1.4 million.

Four alternatives of privatization models were preliminarily identified, and it was necessary to resume the privatization process, with the elaboration of the studies, in order to define the most appropriate one.