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…

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…

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…

Direct Farming in South American Los Grobo Style is changing

Direct Farming in South American Los Grobo Style is changing Farming without fields An Argentine farming group is heavy on science and light on assets BRIAN BRETT, a poet, called farming “a profession of hope”. Farmers must pray for just enough rain, amenable soil conditions and good market prices. In Argentina their prayers do not end there. Since the country’s financial crisis in 2002, its government has taxed farmers at between 20% and 35% on their grain exports, while galloping inflation has pushed…

Family Offices are becoming mainstream

Family Offices are becoming mainstream At last estimate, there are more than 3,000 family offices in the U.S. with another 1,000 in Europe and even more in Asia, Latin America and other areas of the world. Almost every week, we are approached by individuals and firms looking to establish a multi-family office or launch a single family office. This is especially true in areas of the world where wealthy families and individuals previously had little-to-no access to family office wealth management firms. In places…

Farm land is where the money is says the investment experts

Farm land is where the money is says the investment experts There’s money to be made in buying global agricultural land The global population is rising steadily — but food production is not, says Chloe Barrow. The result? More demand for arable land, as nations invest to safeguard their food supply and their wealth China, we learn, has 20 per cent of the world’s population and only 9 per cent of its farmland. By contrast Ukraine — at least before Russia took a chunk of its most fertile ground…

What can Argentines learn from Paraguay

What can Argentines learn from Paraguay Paraguay has never had a good reputation in Argentina. Often forgotten, was only associated with poverty and crime. But today the reality may be changing. Paraguay is the fastest growing country in the region and one of the highest growth rates in the world. What can Argentines learn from them? The world is dynamic. All countries change over time. Some other forward and then backwards like Argentina. And the categories and prejudices of the past, slowly, falling behind…

International Listed Funds with Large Farm Land Holdings in South America

International Listed Funds with Large Farm Land Holdings in South America Some of the global listed companies with large land holdings and featured in many of the agricultural funds include. In addition to these there is a number of private companies with up to 1,000,000 hectares involved in Agriculture. ie El Tejar   in Argentina and Brazil. Cresud (CRESY) is an Argentinean agricultural company that invests in land, cattle and technology. Cresud generates profits through the acquisition, transformation…

Where are Chinese retail Investors putting their money ?

WHERE CHINESE ARE HEADING This year, South Korea, Thailand and Japan are the top 3 countries for China’s rising middle-class travelling overseas. South Korea received a boost from its popular soap operas – which China’s first lady, Peng Liyuan is even a fan of. Japan’s weakened yen makes for affordable travel, and Thailand became more attractive to Chinese travellers due to its loosened visa requirements. For China’s affluent, the US, Australia, New Zealand, Europe and Dubai are considered…

Paraguay becomes world’s 8th -largest exporter of beef, ahead of Argentina

Paraguay becomes world’s 8th -largest exporter of beef, ahead of  Argentina Paraguay now ranks as the eighth-largest exporter of beef in the world and is planning to double the number of cattle slaughtered by 2020, according to the country’s Rural Association, ARP. Last year 2.2million head of cattle were slaughtered in Paraguay, and 73% of the beef was exported while the rest was domestic consumption. Argentina on the other hand, only managed to export 200.000 tons last year. This year Paraguayan…

Is Argentine property a buy ?

Is Argentine property a buy ? Argentina is now one of the cheapest markets in the world. With good reason, Argentina has been out of favor for ten years, due to its current and past incompetent fiscal management and erratic investment policies. For some time there has been a concern that it was following in the footsteps of the failed state of Venezuela previously led by the deceased dictator Hugo Chavez. However, there a large differences between Argentina and the Central American Countries have followed the…

Why there will be water wars sooner than you think

Water has become a real issue as the people around the world are finding out more and more.  New techniques for desalinating ocean waters might be an answer and  this might solve the problem of rising ocean levels!  Here is a great article from Simon Black who reports on some astounding data from around the world. Shanghai, China A few days ago I had a conversation with the Chief Operating Officer for our agricultural fund in Chile. We were discussing water, and he told me that roughly 60% of California…
Real Estate and Investment News from South America
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