South American Real Estate News

The Business Case for Forestry Investment in Uruguay

Post available in: English

In Uruguay, you can choose between eucalyptus for the pulp industry and eucalyptus for the building industry or pine trees (radiata pine). As an investor, you can choose between already planted or pastoral land suitable for plantation. Other options are already planted but not yet harvested or already harvested once as eucalyptus regrows and has a second cycle. Another important decision is whether you want to lease the land or contract a forestry manager.

This last decision makes a big difference in return on investment.

Advantages of forestry investments are that the cost of maintenance and fire insurance is very low and also that livestock revenue is easily earned. After 10 years, you can have the first harvest, and in year 21, the second harvest. Generally, a second harvest has 75% yield of the first harvest, but without the cost of the plantation. After 20 years, you can plant new trees using the forestry layout of the farm.

The advantage is the presence of internationally operating mills like UPM and Montes del Plata. However, there is also a good demand for the export of chips to Portugal or quality wood for manufacture.

Types of soil and prohibition to plant on soils suitable for cropping. The forestry law of 1987 identifies soil types suitable for forestry and indicates where planting trees commercially is not allowed.

Contact the Gateway to South America team to learn about the best investment opportunities in the region. The company is a benchmark for foreign investors wishing to invest in Argentina, Brazil, Chile, Paraguay, Peru and Uruguay, providing expert advice on property acquisition and investment tours.

The Gateway Team – When You are Serious About Property

www.gatewaytosouthamerica.com

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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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