Rural servicing company PGG Wrightson says taking a 50 percent stake in a Uruguayan company makes good business sense, as it continues to grow its seed business in South America.
Agrocentro Uruguay is a farming and rural servicing company as well as a retailer.
PGG Wrightson's chief executive Mark Dewdney said it had had a close working relationship with company since it was formed in 2007.
"They're our largest wholesale customer for seed in Uruguay. We also work very closely with them in seed production and processing. They grow a lot of seed crops under contract for us, which we then sell into the market.
"We have business throughout South America, but Uruguay is where we've got our major operating company. We've been there for about 15 years, we have a company that turns over more than 100-million US dollars and we see a lot more growth opportunity there.
"We sell seed into a number of other countries in South America - Chile, Brazil. We have some seed produced for us in Argentina which we sell back into other countries in the South American region."