Uruguay farm sellers buy in Paraguay hoping to repeat their earlier success

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Uruguay farm sellers buy in Paraguay hoping to repeat their earlier success

Paraguay has become the main destination for Uruguayan investments abroad as they continue to invest very strongly, not only in the Chaco region, where they bought two million hectares, but are investing Itapua or even Missions provinces as well.

They are planting rice, soy and in some cases rearing livestock with those two million hectares. With this investment a process of modernization of the Paraguayan countryside is happening as did 10 years ago Uruguay previously.

All this is creating an impressive soy boom. Paraguay is now the fourth largest producer and exporter of soyabeans in the world and the expectation is for this to keep expanding.

In the next few years Paraguay will be one of the world largest producers and exporters of meat.

Uruguay is well known and not only for the potential of their commodities, including its ability to develop efficient technology at prices that very competitive in relative to Argentine and Brazilian.

The price per hectare of farmland has risen, because of the increased interest, but there is still a scenario of great opportunities, because besides the price of land there are other factors that are attractive.

Paraguay has very a favorable low-cost economy. It is among the largest generators of hydroelectric power in the world, which allow low electricity prices.

It is the country with the lowest tax burden in the region, with a very orthodox, stable economy.

In addition, 70% of the population is under 30 years, so there is ample labor available and suitable for training.

80% of current trade through the riverways is under Paraguayan flag and therefore the potential of Uruguayan ports is on the binational agenda. Paraguay shows that their opportunities to lower their export transport costs by arrangement with Uruguay.

Nueva Palmira moves annually between $ 800 million and US $ 1,000 million in Paraguayan goods in transit to the world, 10% to 15% of Paraguay’s total imports will be entering the port of Montevideo once it is built a water deep port in Rocha, with a natural depth of 20 meters.

As Uruguay improves their logistics costs Paraguay will look increasingly to their ports and more trade will be encouraged.

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.

www.gatewaytosouthamerica.com

Post available in: English