South American Real Estate News
/ Month / November

Doing business with the Chinese requires an understanding of their culture

Major cultural differences can be a recipe for disaster when South American businesses try to operate in China. Understanding the distinct characteristics of the Chinese way of thinking is a first step in reducing that risk of failure. The research by agribusiness management lecturers at Lincoln University’s faculty of commerce in New Zealand, set out to study the cross-cultural business relationships between foreigners and Chinese within the food and agribusiness sector. Nonetheless, the lessons learned…

Would you like to savour the adventure of Dakar 2015 from your backyard?

Would you like to savour the adventure of Dakar 2015 from your backyard? The Dakar adventure began in 1977  in Africa. Thierry Sabine got lost on his motorbike in the Libyan desert during the course of the Abidjan-Nice rally. Saved in the extremis from the sands, he returned to France fascinated by the sights and decided to share it with others his discovery. Thus, the race route out of Europe was first formed. The route to Algiers crossing Agadez before eventually finishing at Dakar, Africa. The founder coined…

LAN CHILE to introduce a 787 Dreamliner service to the Sydney-Santiago route

LAN CHILE to introduce a 787 Dreamliner service to the Sydney-Santiago route LAN will upgrade its daily Sydney-Auckland-Santiago service from the Airbus A340-300 to the Boeing 787 from April 18 2015. The Chile-based airline said in a statement the Dreamliner used to Sydney would be configured with 30 business and 217 economy seats for a total of 247, suggesting LAN planned to use the original 787-8 to operate the route. LAN’s 787-9s, to be delivered from 2015, will have 313 seats, according to the airline’s…

Argentina is the top tourist destination in South America

Argentina will  welcome some nearly six million visitors in 2014.  Unlike previous periods most of these tourists ( 75% ) are Latin American with Europeans and North Americans mostly staying away.  Chile, Brazil, Uruguay and Paraguay being the top sources of visitors. In 2003, just as the country was crawling out of its last economic crisis, almost three million international travellers visited Argentina. Ten years later, the country is on track to welcome a record number of visitors, with the Tourism Ministry…

Foreigners can retire Income Tax Free in Chile

Retire Income Tax Free in Chile! Chile does not impose income tax on foreign pensions or social security of foreigners with residency in Chile. This is in addition to other tax benefits for all new residents of Chile, such as the three year foreign income tax exemption or any dual tax treaties that may exist between Chile and other countries. No income tax on Foreign Pensions and Social Security in Chile! One of the greatest benefits of retiring in Chile even if you are not really near retirement age is the…

Why does Argentina have a dual currency ? The Blue Rate

Is the Blue Market Really a Black Market? In a standard economy, money is money. Whether you carry a briefcase of crisp hundreds into a bank in New York, or a sack filled with small bills into a branch in Nebraska, the deposit to your account will look exactly the same. The commodity (money) has a single value – the amount printed on the bill. Not so in Argentina’s blue dollar market. New hundreds will always command a better exchange rate than old, wilted twenties and tens, which are more of a problem…

Paraguay opens the welcome mat for business

Paraguay has a simple and serious message Backed by rising growth rates and successful capital market deals, Paraguay is telling the world it is very much open for business. After spending some time in Paraguay, business travellers (whose numbers have been increasing in recent months) may be struck by two thoughts. First, the country’s opportunity is considerable: it is blessed with rich farmland and a climate that aids agricultural productivity with an average of 310 days of sunshine per year; it has abundant…

Southern Chile economy is booming

The Southern region of Chile has the most dynamic and fastest-growing economy in the country. Magallanes region in the extreme south of Chile, was the most dynamic of the country’s economy during the third quarter of the year according to the latest release from the local stats office, INE. This contrasts with the rest of the fourteen regions of the country of which six, reported negative growth. The Regional Economic Activity Indicator, Inacer, showed that in the third quarter, the regions of Magallanes,…

Agriculture in Paraguay is building on its core strengths

The production of food commodities is where Paraguay excels. Government plans focus on reducing the impact of volatility on the agricultural industry through the use of technology, improved transport links and increased processing capacity. The Government’s development of country-wide infrastructure projects will not just aid economic diversification – it will also benefit Paraguay’s core economic strength: agricultural production. And while there is consensus within the country about the need to diversify…

The new farming frontier in South America

The new farming frontier in South America Commodity prices may be weaker but South American food producers still enjoy formidable comparative advantages. Foreign investors seeking to benefit from the enormous pick up in Chinese demand for agricultural commodities grown in Latin America have however had a fairly complicated time. A 2010 law limits direct foreign ownership of land in Brazil. Tax and foreign constraints also  limit the profitability of farming in Argentina and listed agribusiness stocks are few…

Argentine’s future will be settled in 2015. If you don’t like politics don’t read this

Who will face the Kirchnerite candidate in a potential run off ? Pretty soon everybody, even those who loathe politics, will start to talk about the next big story: the 2015 presidential elections. So why not start now? It looks like there will be a three-horse race for the presidency that includes Buenos Aires Governor Daniel Scioli (a Kirchnerite), Buenos Aires Mayor Mauricio Macri (leader of the centre-right party PRO) and the lawmaker Sergio Massa (a ex Peronist who defeated the Kirchnerite candidates in…

Cattle farming in Argentina can be competitive with growing Soy in many regions

Farmer and partner of  Openagro, Guillemo Villagra, has made a comparison of profitability between soybeans and livestock, in pesos ( note not dollars ). He considered  the production on his own farm when he looked the profitability of soybeans against breeding or rearing cattle. While livestock demands higher initial costs  (cows, facilities, etc.), the conclusion is that when  analyzing the business today income from livestock is many cases more profitable than soy when dealing with AR pesos. In the West…

A Guide to Dairy Investment in Latin America

A Guide to Dairy Investment in Latin America With an average growth rate of 5% a year, South American dairy production appears to be a strong market for investment, despite a certain degree of price and political instability. According to a Food and Agriculture Organization (FAO) report, rising incomes and firm regional and international demand have favored dairy production growth in Latin America and the Caribbean. South American milk production expanded by over 5% in 2011 and a similar rate of increase was…

Argentina Farmland Prices continue to Fall

Argentina Farmland Prices continue to Fall With the fall in soya and beef prices farm incomes have dropped. Naturally just as farm prices rose due to record crop and beef prices they are now dropping for the same reason. It is now a buyers market and prices are 25% to 30% lower than at their peak. The mixture of an oppressive taxes (30% additional export tax for farmers) and lower international prices have damaged profitability from a previous 6% to 8% to less than 3% for some. In Argentina prized Nucleus Region…

Soybeans planting keep increasing in South America

Soybeans planting keep increasing in South America There has been a significant surface expansion (mostly in Brazil and Argentina) in the last three decades, new players are involved (such as Paraguay and Bolivia), and there is a large amount of available land in Brazil. A study by Bain & Company, a Boston consultancy, forecasts that Argentina, Bolivia, Brazil, Paraguay, and Uruguay together would produce 600 million tons of soybeans and 1.5 billion tons of corn by 2050. To achieve this, those countries…