South American Real Estate News

GTSA – Urugugay Press Release: Savills and GTSA offer one of the most advanced Irrigated Dairy Farms in Uruguay for Sale

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 Dairy Farms in Uruguay for Sale

Savills and Gateway to South America – Uruguay are pleased to offer for sale a Large Scale Irrigated Dairy Farm (San Pedro), a 1042 hectare operational dairy unit in Western Uruguay, an area widely regarded as having some of the highest quality lands in the country. Currently, San Pedro is milking 1000 cows and carries an additional 850 dairy young-stock. With further investment, the farm could easily sustain 2500 milking cows, a number which will make the most efficient use of the infrastructure already in place.

Situated under 3 hours from the capital Montevideo, and within 4 hours travel by boat and car from Buenos Aires, San Pedro was chosen by the current owners, a group of experienced International New Zealand farmers and investors. The well-designed farm was selected after extensive research, and in-depth analysis of the opportunities locally.

Greg Aylward, part-owner and manager of San Pedro, explains “The group analyzed the various opportunities in this area of Uruguay and opted for the San Pedro location as the stand-out choice having set strict selection criteria. Importantly our criteria prioritized the farm’s ability to irrigate large portions of the farm and enhance the effective area. The location enables milk to be sold to a number of leading milk manufacturers. In addition, we researched soil types that optimized both the growth of quality feeds and the ability to carry large numbers of livestock. While the farm has an excellent base for pastoral farming, it also allows flexibility to run a higher feed input system when milk prices permit. The farm has alternative land use options if required, and has good access to major road and transport links. The fact that the farm is well situated in the West of Uruguay allows excellent access to contractors, infrastructure, staff, and farming resources generally.”

Having purchased San Pedro in 2007, the group have improved what was once bare land suitable for extensive arable and stock farming into a modern and highly efficient dairy holding. Situated in the centre of the farm is a 50-bale Wesfalia rotary parlour and excellent feed pad facilities. The land totals 1042 hectares and is situated in a single ring-fenced block. Currently, 400 hectares are under six Zimmermatic centre pivot irrigators with the potential to develop a further 250 hectares with future investment.

Stephen Hall of Savills, explains “The irrigation system has been developed since the property was purchased by damming the stream that ran through the farm, meaning the property has up to 21 million m3 of irrigation facility which covers in total 80 hectares. The facility is fed from 53 square kilometres of surface run-off and has enough storage facility for over 2000ha of irrigation. The group have also established a modern electricity grid connection with 4 transformers on the farm.”

Geoffrey McRae, CEO of GTSA adds: “the main agricultural risk in Uruguay is drought and the Uruguayan Government are actively encouraging the storage of water as a way to mitigate the serious detrimental effect drought has on the agricultural sector. For those that invest in reservoir facilities, government legislation is in place to protect against any future upstream reservoirs being built which compromises operational downstream facilities.”

San Pedro is available for sale as a turnkey investment opportunity with the land, machinery and equipment and livestock included as part of the sale. The group have developed a robust 10-year business plan to include medium-term additional investment. The business plan shows significant economies of scale once the business is fully capitalized which produce conservative net yields of over 10% from an early stage. With some moderate further investment, the farm’s current infrastructure could accommodate up to 2,500 dairy cows plus replacements and produce very attractive yields.

For further details, please contact Gateway to South America – Uruguay

Property now sold

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About Gateway to South America

Gateway to South America was established in 2006 as a single office in Buenos Aires. The company has since expanded into a vibrant regional network, servicing the Southern Cone clients in Argentina, Brazil, Chile, Paraguay, Peru and Uruguay with professional real estate marketing services. If you enjoy reading our news site please share it on your social media below.

Post available in: English


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