Brazil's unit of U.S. agribusiness company Cargill Inc., Cargill Brasil, is entering the segment of food industry ingredients through the acquisition of Smucker Brasil, so far controlled by the U.S. jellies and jams producer J.M. Smucker Co.

Smucker Brasil used to supply fruit jellies and jams to biscuit and cake industrial producers, with its sales totaling $11 million (8.87 million euros) for the 2004 fiscal year, J.M. Smucker said.

The acquisition was part of Cargill's strategy to expand its operations in the food industry, the company's corporative issues director, Maria Helena Miessva, said.

The deal included the acquisition of the Smucker Brasil's plant in Sao Jose do Rio Pardo, in Sao Paulo's countryside. The plant has a production capacity of 18,000 tons per year. The new owner said that the 90 people so far working in the plant would not lose their jobs.

According to J.M. Smucker, the sale of its Brazilian unit was part of the company's strategy to concentrate its operations in North America.