Agriculture and livestock

Agribusiness


 

In the past decade, agribusiness has boosted Uruguay’s growth driven by a favorable international context and new investments.

The latest agribusiness report from the department of Competitive Intelligence of Uruguay XXI foresees a positive outcome in most of the products,
consolidating the country as a quality food supplier, to the most demanding markets in the world.

Uruguay is part of the main food exporting region, it feeds over twenty eight million people, number that is estimated to reach fifty million in the next few years. It has 16.4 million hectares used by the agriculture and livestock sector, which is more than 90% of the country’s surface. According to the latest Agribusiness report of the department of Competitive Intelligence of Uruguay XXI, the value of the land has risen substantially, multiplying its price by ten in the last 15 years.

Given such a favorable context, in 2017 agriculture and livestock exports represented 70% of the country’s total exports, and showed a steady growth in the past decade, especially in the agriculture, livestock, hunt and forestry GDP, that had an annual average 2.3% increase between 2002 and 2016.

In 2017 sales in the agriculture sector came near US$ 7,176 millions, being beef, cellulose and soybean the main export products. In terms of food export specifically, that year sales reached US$ 4,955 millions, being, once again, beef, soybean, dairy products and rice the main products.

Beef has traditionally been the main export product in Uruguay, reaching nearly 50 markets and turning the country into one of the ten main meat exporters in the world.

The country’s cattle industry is recognized for its sustainable production, with animals that live outdoors and feed off natural pastures. The excellent reputation of Uruguayan meat worldwide is also based on its traceability system. This is strictly applied by law to 100% of cattle, and it guarantees the origin and safety of food products from the beginning of the production cycle until it reaches the consumer. This system is also applied to poultry, honey, citrus and vineyards.

Uruguay is also among the six main exporters of soybean of the world. In 2017, rice was the second most exported product in the agricultural sector, with a value of US$ 448 million. In 2016, Uruguay was the 9th rice exporter of the world, apart from being the 1st one in Latin America.

The entry of Direct Foreign Investment to the country’s agriculture and livestock sector grew as a consequence of the international price increase of commodities in the past decade, the suitable business environment and the advantageous use of the land and its production.

The accumulated Direct Foreign Investment in the food processing industry equaled US$ 602 million between 2002 and 2016. As for the agriculture, livestock, forestry and fishing sectors, the sum reached US$ 3,915 million in the same period.

Source: Uruguay XXI
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Uruguay XXI is a Uruguayan agency dedicated to the promotion of exports, investments and country image.

 

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