CATTLE FARMING

Uruguay, since its discovery, has established itself as an important cattle farming platform.
Its plain lands and natural pastures were key to make cattle farming develop and be consolidated as one of the most advanced and profitable in the world.

Two features distinguish cattle farming in Uruguay:

• Livestock businesses and deals are all done in US dollars
• The herd is electronically tracked and registered to the name of the owner

Uruguay is one of the few countries in the globe where all the cattle is tracked, therefore being able to place its meat products in the most demanding markets. This has meant higher exports and added value to the consuming markets in the USA, Germany and Europe, Israel, etc.

Besides the commercial aspect of the tracking system, there is also total legal security for the investor in cattle farming in Uruguay, since, once the livestock is bought, it is registered at SIG (Sistema Nacional de Informacion Ganadeira – National Information System of Cattle)

This government body gathers all the registration of the Uruguayan livestock and it is only through this system that anyone can buy and sell their cattle, from a complete herd down to only one animal.

For an investor, therefore, once cattle is bought and the registration at SIG done, the owner of the livestock has full control of his or her herd. Even if the animals are kept in a partnership system (on someone else’s farm), it cannot be bought or sold by anyone other than the investor.

For you to take part in the cattle farming market in Uruguay it is not necessary to own a farm or have expertise regarding breeding or keeping cattle.

We can offer you:

• Mediation and search for rural proprietors who have farms available to receive livestock in a partnership production system
• Follow-up and drawing of a contract (in Uruguay called capitalizacion) in which the investor buys the cattle to his/her name (with the registration on the federal body), and hands over this livestock to the farm owner (partner) so that it can feed on the pasture. The partner has full responsibility of looking after the health and well-being of the animals, as well as any other activity related to the administration of the livestock

Upon the end of the contract you have the profit of the activity and this profit is then shared on the proportion of the contract, varying according to the kind of investment – it may be cows to breed calves, breeding of calves or feeding and fattening.

In general, these are the characteristics of investments in cattle farming in Uruguay.

On average, net profits reach 10% on the amount invested in US dollars.

An important aspect to highlight is that investments in cattle farming are totally net and short-term.

At the end of the partnership or cycle (15 months on average) you may simply sell the whole of your livestock, cashing the net earnings of the amount invested.