"A business that's just getting off the ground": Four partners add value to a crop and export to the Gulf countries

What began as a logistics link has transformed, in just a few years, into one of the most ambitious ventures in the Argentine forage industry. Compañía Argentina de alfalfas y Forrajes (Cadaf), a company based in San Francisco, Córdoba, is now positioned as a key player in alfalfa exports , primarily destined for the Persian Gulf countries. From its plant built on railroad land, its partners plan to turn it into the country's leading exporter and consolidate Argentina's position as a powerhouse in the global forage market.

“We were born out of necessity in 2021 with the construction of our plant in San Francisco. We had already been working in third-party logistics since 2018, but we realized we could take a leap forward and actively participate with our own plant,” explains Alfredo Abboud , CEO and one of the firm's four partners.

Cadaf's founding wasn't a sudden decision. Behind it was a strategic understanding of the agricultural business , a vision that combined infrastructure, knowledge of foreign trade, and contacts in the production system. In its early years, the company operated as a logistics operator, managing cargo, transportation, and documentation. But soon, the opportunity grew even greater.

“There was a clear need to professionalize forage exports . We saw producers with excellent quality, but lacking in volume or logistics. We set out to be that link connecting the countryside to the world,” Abboud recalls.

The Cadaf plant is a multimodal logistics hub. The property, which belongs to the railroad, was converted into a state-of-the-art agro-industrial platform. It features a 5,700-square-meter warehouse, a 25,000-square-meter container yard, and equipment that allows for integrated operation with the railroad: unloading, loading, and dispatching containers directly to the port.

"This gives us a competitive advantage. We don't rely exclusively on trucks ; we can operate with rail and improve our efficiency. This allows us to project on a large scale," says the CEO.

Cadaf currently operates with between 6 and 10 people in the plant, plus an external team of technicians and field workers who inspect the merchandise, control quality, and support producers. Forage standardization is key : Arab markets demand young, soil-free cuts with a low fiber content and no weeds.

"You can't export just any alfalfa. For a market like the Emirates, a bale with dirt in it is considered rejected. That's why we work from the batch to the final consolidation," Abboud points out.

Cadaf is supplied primarily from fields located in Córdoba and Santa Fe, within a radius of up to 200 kilometers from San Francisco. The alfalfa arrives in field bales of 550 to 600 kg. It is then stabilized in the shed, compacted into mega-bales up to 900 kg, and loaded into 40-foot sea containers , which are shipped with up to 27 net tons.

Quality is classified into five levels—Supreme, Premium, Good, Fair, and Utility—but the company primarily works with the three highest categories. Prices are set in September, during the current season, which provides predictability for producers. In a normal season, the processed volume can reach 60,000 tons, although due to the drought in recent years, the pace has been more moderate.

"Our idea is to work with annual contracts. We offer price and stability, but many producers still prefer spontaneous sales. The challenge is building trust in a business that's just getting off the ground," Abboud admits.

Cadaf maintains agreements with exclusive producers (around 2,000 hectares) and receives supplies from an additional 7,000 to 8,000 hectares each year. Not all production is exportable : between climate, handling, and harvesting, many variables affect final quality.

"Today we're transforming alfalfa into animal protein... and foreign currency. We're adding value from the Argentine countryside to a chain that has extremely high demand in the Middle East," the entrepreneur summarizes.

Cadaf's main market is the Gulf countries : the United Arab Emirates, Saudi Arabia, Qatar, Kuwait, Oman, and Bahrain. They have also shipped to Jordan and have sanitary approval to operate in China, although this market has not yet been exploited. The largest buyer is Saudi Arabia, which imports nearly 2 million tons of alfalfa per year.

“They can't produce grass. That's why they have very aggressive food security policies. They buy everything: fodder, animal feed, powdered milk. They prefer to have their own dairy farms in the desert, but secure raw materials from stable countries like ours ,” Abboud comments.

According to him, the logistics operation is complex. Containers depart from Rosario or Buenos Aires to ports such as Jebel Ali (Dubai) or Damman (Saudi Arabia). From there, the buyer distributes the cargo to their fields. The merchandise travels between 45 and 60 days, so coordination is critical.

"It's not just about selling. You have to guarantee availability, traceability, monitoring, and consistent quality . Otherwise, you lose trust, and that takes years to rebuild," he says.

Prices, already set at destination, can exceed USD 350 per ton for Supreme quality. However, he clarified that freight, containers, port services, and exchange rate instability reduce margins.

“ The logistics costs are brutal . Plus, if there's a shortage of containers or geopolitical issues like those in the Red Sea, everything gets complicated. That's why we work with top-tier international logistics operators,” he explains.

In recent months, the international scene has once again shown signs of risk . Tensions between Iran and Israel have raised concerns about possible closures of the Strait of Hormuz or disruptions to navigation through the Suez Canal. Both routes are essential for Argentine foreign trade with the Middle East.

“If the Hormuz border is cut off, we're in trouble. It's not just us: 30% of the world's oil passes through there. But if that happens, alfalfa exports will be completely halted. These are risks we have to monitor closely,” Abboud admits.

At the local level, the climate also plays a role. Recent seasons were severely affected by drought , which reduced forage volume and quality. This year, with improved rainfall in the fall, a strong recovery is expected. Cadaf has already committed purchases of several thousand tons for the next season, which begins in October.

“The producer knows this is an opportunity . Alfalfa isn't just a rotation; it's income . But it has to be done well, aiming for early harvesting, protecting the hay, and avoiding soil. Exporting forage isn't the same as producing it for domestic consumption,” he emphasizes.