LIVESTOCK FARMING IN URUGUAY
At the beginning of the XVII century Hernandarias introduced the first cattle herds to the Oriental territory (as it was called at the time). Since then, and due to the generous agro-climatic conditions of the country, livestock business has consolidated itself as the fundamental fuel to the economy.
Uruguay produces about 550 thousand tons of beef meat a year, 180 thousand tons are internally consumed and 370 thousand tons are exported. The destinations of said exports are more than 100 countries in the five continents, to which Uruguay can access thanks to its privileged sanitary conditions and its very reliable traceability system. Meat export represents almost a 25% of the country’s exports.
World consumers recognise the quality of Uruguayan meats for their natural pastoral production, performed in great animal welfare conditions, added to the genetic quality that the British breeds raised in our fields provides.
REASONS TO INVEST IN LIVESTOCK
Unlike other regional markets, cattle in Uruguay is always bought and sold in American dollars. This grants the business a better shield against rate of exchange gaps.
LIQUIDITY / CASH FLOW
Unlike other businesses in the agricultural market, with cattle there is no need to wait for a tree to bloom to see utilities neither we depend on a harvest to get profits. Cattle is essentially liquid, since the day it is bought to the end, cattle business can be carried out immediately, selling it and receiving payment in cash.
Investments on livestock are not computable for Equity Tax. Besides, these placements are not computable for IRPF (Personal Income Taxes) freeing the returns of their heavy tax burden. This is why Tradición Ganadera handles animals under the name of each investor. Later, and depending on the business settlement and to whom the cattle is sold, IMEBA could be taxed or also the Municipal Tax of1% could be not taxed.
HOW WAS TRADICIÓN GANADERA BORN?
Historically, there have been barriers that make the fulfilment of agricultural business to those out of the market difficult.
- To be the best option to bridge the gap of two different worlds that we visualize as complementary: agricultural and financial investments.
- Through an innovative perspective, to generate business opportunities that are safe, balanced and attractive to our customers.
- Transparency, fairness, ethics, discretion.
Tradición Ganadera has the conviction that it is possible to encourage synergies between the productive world and the investment one. The countryside is highly demanding in terms of working capital, which sometimes limits the maximization of its potential. On the other hand, global markets’ volatility forces investors to look for alternative options to those more traditional in the financial world. Getting the interests of both parties to match is our duty.
WHY CHOOSING TRADICIÓN GANADERA?
The main objective of Tradición Ganadera is to maximize profitability of its customers, looking for long-term businesses that fit the win-win prerequisite. This, we work looking for attractive opportunities to investors, which are at the same time beneficial to producers and sustainable in time
While other market operators work with standardized products, Tradición Ganadera designs customized business, and special care is placed on each investor – producer combination is made, looking for the best compatibility between both profiles.
Aligned to our philosophy and total transparency vales, business with Tradición Ganadera transfer total real profitability to the parties.
As a sign of commitment with clients and trust in the business, Tradición Ganadera’s operation is reimbursed according to final profitability obtained in each productive cycle. In the end, the company assumes risks as a partner in the deal.
KEYS TO A SUCCESSFUL BUSINESS CHOICE
To complete each business, we look for three fundamental conditions to be met, considering the absence of any means the business is not possible:
To fulfil the points already mentioned, Tradición Ganadera relies on an experienced and trustworthy technical team both in the agronomic and financial niches.
To generate business whose profitability is attractive it is essential to be very efficient when buying cattle (weigh, quality and Price) and to keep a solid low-cost structure. In order to do this, Tradición Ganadera takes the lead to solve the business logistics based on its expertise in the field and its contacts network. Thus, we avoid non-experienced investors on the field to pay for learning costs and that allows them to operate with the same ease as those traditional parties in the sector.
- Technical agronomic rationale
Good pastures for animals and animals which have a good growth potential.
- Technical financial rationale
Profitability is estimated on the basis of acceptability and attractiveness of the technical rationale provided.
- Agreements with reliable producers
Reliability and appropriate management of animals is essential to the success of the business.