Irrigation increases productivity in 30% representing a margin increase of around 90%

Implying at the same time, a 30% land appreciation due to the increase in productivity. Moreover, irrigation stabilizes yields creating a more predictable cash flow in long dry periods. We call “water arbitrage” to the difference of productivity between farm with and without irrigation capacity, which increases the value. 



In a world with a food demand in constant evolution and increase, markets present opportunities in the grains market.

· Growing world population


· Socio-economic transformation, growing middle class in emerging markets like China or India


· Food diet modification based on greater acquisition capacity towards higher protein products


· With higher income a person consumes more meat Increase of calories consumed average per capita in the world:


·  1964/66 : 2,000 calories per day

·  1997/99 : 2,600 calories per day

·  2030: 3,000 calories per day Increasing demand of bio-fuels contributes to an increasing demand of grain



Agriculture production has resisted to the latest financial crisis, demonstrating to be a safe business. New business players, growing population and limited natural resources operate as insufficient elements.


· Increase in food prices as a consequence of world growing population and cultural change.


· Land prices increase, as it derivatives, based on the conscience of limited resources to face a growing demand.

Source: NCREIF Farm land and Office Index, S&P 500 Index; Lehman US Bond Index., 2009.



Uruguay business environment:

· Equal treatment to local and foreign investors.


· Absence of extraordinary requirement to companies’ formation.


· No amount limit for foreign participation in an investment.


· Capital repatriation granted, available at any time with no restrictions.  


· Machinery importation has favorable tax treatment, eventually

with 0% tax policies. Technology investment generates tax credit.


· No currency conversion restriction. Transactions can be held in USD

with no Price control or limitations.