Agribusiness opportunities in South America’s emerging markets
If you are looking for portfolio diversification using farmland, we can show you very practical options for mid-sized and larger investors. GTSA offers options for direct and indirect opportunities for farmland ownership in emerging economies such as Paraguay, Uruguay and Peru. Farmland is an attractive long-term investment that offers current income, capital appreciation, an inflation hedge and favourable diversification that is negatively correlated with traditional asset classes such as equities. We believe…
💰Top 10 Factors Affecting Estancia’s (large farms) Value
The valuation of an Estancia and finding the price per hectare is substantially different than other types of real estate. While residential and commercial real estate prices typically rely on data based upon numerous transactions within a defined market area that can be defined as “comparable sales,” most Estancia sales are not published on any database, and there are relatively few transactions that close within a two-year time frame, and there is no defined market area. Due to the uniqueness of ranches,…
South America makes good business sense for New Zealand and Australian companies
“Agriculture is a huge part of the business of South America,” said NZ Trade and Enterprise international market manager, Brendan Mahar. “For some NZ companies, it’s made a lot of sense to extend their pasture-based capabilities to different parts of the world. “Although, doing business in South America is not without its language, legal and local economic challenges.” Having Fonterra so well recognised has given other NZ companies the confidence to build their own South American links– Brendan…
Paraguay’s soy boom: a blessing or a curse?
Paraguay’s is not often highlighted for its economic achievements. Yet after 20 years of stagnation at the end of the 20th century, the landlocked country has enjoyed almost a decade of economic growth, still one of the fastest in Latin America. Driving this impressive expansion is a thriving agricultural sector, and its principal product: soybean. Taking advantage of recent rises international prices, spurred by demand from China and the purchase from EU countries to produce biodiesel, Paraguay is now…
Argentine Economic reforms have more than doubled farm profitability
Argentine Economic Reforms introduced by Argentina’s new government have “more than doubled” profitability prospects for farmers, said Adecoagro, the South American agricultural group in which George Soros is the biggest investor. The farm operator – which has more than 350,000 hectares planted with field crops and sugar cane – said that changes introduced by the administration of Mauricio Macri, who was elected Argentine president in December, “have and will continue to have a…
Farmland Investments Overview
With stock markets gyrating wildly and bonds offering little reward, investors are pouring billions into farms; you can’t eat gold Perry Vieth baled hay on a neighbor’s farm in Wisconsin for two summers during high school in 1972 and 1973. The grueling labor left him with no doubt about getting a college degree so that he’d never have to work as hard again for a paycheck. Thirty-eight years later, and after a career as a securities lawyer and fixed-income trader, Vieth is back on the farm.…
Argentina to receive more Chinese investments this year
By China Daily | July 2011 More Chinese investments are expected to flow to Argentina this year as the two governments signed several economic cooperation agreements this week, Luis Kreckler, Argentine secretary of trade and international economic relations, said on Wednesday. The agreements cover sectors including agriculture, energy, transportation and mining, Kreckler told China Daily, without disclosing details. The trade secretary headed a delegation of 50 high-level Argentine government officials in a…
China to invest billions in South American farmland improvements
The Chinese government plans to invest more than 100 billion yuan (15 billion U.S. dollars) over the next five years to improve farmland for the nation’s food security, according to the Ministry of Land and Resources (MOLAR). The investment aims to improve about 4 million hectares of land and replenish an additional 670,000 hectares of arable land in its major grain producers — Hebei, Jilin, Heilongjiang, Jiangsu, Anhui, Jiangxi, Shandong, Hubei provinces and Inner Mongolia and Guangxi autonomous…
Brazil’s agriculture hits record values
Brazil’s agriculture hits record values By Paul Kiernan @Dow Jones Newswires The gross value of Brazil’s top 20 crops is expected to rise 10% this year from 2010 to a record 199 billion reais ($125.9 billion), the Agricultural Ministry said Tuesday. Higher global prices for foods and increased agricultural output in Brazil are responsible for the expected growth, which will push the aggregate value of the country’s main crops above 2008 levels, the ministry said in a press…
Adecoagro to build new sugarcane mill in Mato Grosso do Sul, Brazil
Adecoagro S.A. (NYSE: AGRO), a leading agricultural company in South America, announced today that on June 27, 2011, it obtained the necessary environmental license to start the construction and assembly of the Ivinhema mill in the State of Mato Grosso do Sul, Brazil. Adecoagro is a leading agricultural company in South America. Adecoagro owns over 283 thousand hectares of farmland and several industrial facilities spread across the most productive regions of Argentina, Brazil and Uruguay, where it produces…
Unasur forecasts South America’s decade
A new global order is emerging as a result of the world crisis and recession in developed countries and Latin America has a crucial role to play given its very satisfactory economic performance in recent years, said Unasur Secretary General Maria Emma Mejia. Meeting in Madrid for the tenth anniversary of the Spanish foreign affairs think-tank Royal Institute Elcano, Ms Mejia together with other world experts and politicians were invited to discuss the international crisis, the emergence of new powers…
Brazil prepares new bill to allow farmland foreign ownership
According to a source at the Presidential Chief of Staff’s Office, Brazil’s government is preparing a bill that would once again allow foreigners to buy over 5,000 hectares (12,350 acres) of land subject to prior government approval. Congress must approve purchases of 500,000 hectares (1.2 million acres) or more. The ban – which took the form of a reinterpretation of a 1971 law – was a response to reports that Middle Eastern sovereign funds and Chinese state-owned companies were attempting to buy large…
China’s largest farming company and Argentina’s Cresud SA linked a joint venture to buy South American farmland
China’s largest farming company, Heilongjiang Beidahuang Nongken Group, inked a joint venture with Argentina’s Cresud SA to buy land and farm soybeans. Cresud is one of Argentina’s top agriculture firms with control over more than 1 million hectares (2.47 million acres) of farmland that produce grain, cattle and milk. Heilongjiang Beidahuang’s chairman, Sui Fengfu, told Dow Jones Newswires in March that the company plans to buy 200,000 hectares of overseas farmland this year, and that…
Brazil registers the first legal actions against foreign farmland acquisition ban
The change in the rules for farmland acquisition by foreigners is causing a commotion in Brazil agriculture industry. Vendors and buyers in rural areas are starting to litigate to see who will pay for the restriction prejudices derived from a new inter pretation of law by the Union´s Attorney-General (AGU). The ban – which took the form of a reinterpretation of a 1971 law – was a response to reports that Middle Eastern sovereign funds and Chinese state-owned companies were attempting to buy large…
Uruguay discussing new taxation on land holdings
President Jose Mujica last Monday during the cabinet meeting presented a fiscal proposal, elaborated with the head of the Planning Office which considers three main brackets: over 2.000 hectares, 8 US dollars per hectare; over 5.000 hectares, 12 USD per hectare and over 10.000 hectares, 16 USD. However Vice-president Danilo Astori, Economy Minister Fernando Lorenzo, Agriculture minister Tabare Aguerre and Public Works and Transport minister Enrique Pintado are proposing a tax linked to the production and profitability…
