Vieragro report

Report on land investments


 

Below, you will find some of our projections for the agriculture and livestock sector for the following years:

As the global demand gets bigger, agricultural products increase their value. By 2050, the population is estimated to increase by 40%, and prices will increase with such increase. Economic growth also plays a part in this matter, especially in developing countries. The demand for suitable lands that can produce agricultural products gets bigger. City growth and urbanization reduce the productivity surfaces and encourages a quick commercialization in the market. In our country, the agriculture and livestock sector seems to do better directly after some years of bad weather. For the 2017-2018 harvest, over 1.2 million hectares were planted with summer crops and 92% with soybean. Production numbers are still below the technological targets, but lead us to believe that they will increase in a nearby future. An example of this is the fact that this 2019 harvest, which has only just started, will throw record productivity numbers.

It must be pointed out that there is commercial security with access to the main markets and several commercialization options; an improvement in the infrastructure and logistics will enhance the margins. Land is highly regarded as an investment option, as it is a rare and finite good, and what is more, it protects the investor from monetary variations, inflation and financial collapse.

What mainly determines the value of the land is the price of the agricultural products that can be produced in them, or the price it can get from rent, which also determines the investment profitability. In the last 12 years these products have been valued in Uruguay and the rest of the world, allowing the current stabilization.

There are over 16.2 million hectares in Uruguay. Most of these are used for silvopasture, being livestock the activity that occupies 75% of the production area, then dryland farming and forestry. As from 2003, the land price increased significantly.

For all of this, the land is proved to be an exceptional real-estate asset, a safe, time-proof investment and a way to generate fine profitability currencies. The international macro monetary conjunction shows a favorable scene for land investment.

Joaquín Viera

VIERAGRO INVESTMENTS

Uruguay agricultural

We provide information on agribusiness in Uruguay

1248 Dr. Luis Alberto de Herrera Ave,
World Trade Center Tower III , Floor 12
11300 Montevideo, Uruguay

(+598) 2 623 6517

(+598) 94 490 000

info@vieragro.com.uy

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