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. 

 

INCREASING DEMAND

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

 

RESISTANCE TO CRISIS

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.

INVEST IN URUGUAY

 

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.

INCREASED

AGRICULTURE

PRODUCTIVITY

info@bearingagro.com 

+598 2604 3002 

Dr. Alejandro Schroeder 6558

CP 11500 | Montevideo, Uruguay