- Uruguay and Paraguay offer good opportunities for international investors to Access agroindustry
- Uruguay’s consolidation has created opportunities for local groups.
- Some uruguayan groups have started to expand to Paraguay, where the government seeks for opportunities for the land which is still available.
According to a research by Financial Times, Uruguay and Paraguay enjoy comparative advantages as food producers in the South Cone. Brasil and Argentina, the historical producers, are getting more and more difficult for foreigner investors, due to tax and trade limitations.
Even though Uruguay’s forestal industry is mainly dominated by foreigner actors, local groups are starting to be created in the soy sector and grains sector. Some local actors have started to get involved in big scale agricultural projects.
In general, de government policies have helped, although there are some conflicts due to the por infrastructure and the slowliness of the improvements. A big advantage is that the legal and tax frames in Uruguay is more transparent and predictible than those in Argentina and Brazil. Moreover, the agricultura policies conduct to a sustainable development. For example, in 2010 a field protection plan was introduced (1.5m has are protected) and the crop rotation is compulsory since 2013.
You can read these and other figures of the research in the Financial Times’ article.
