Invest in Uruguay
Why Uruguay?Uruguay is known as the Switzerland of South America, due to its free economy, strong welfare state, educated workforce and pro-market government policies. It represents a safe haven for your investment far from the chaos in Europe and the US.
Did you know?
- Uruguay is perfect for forestry investments due to the climate, stable legal framework for investments, infrastructure and a 20-year history in forestry
- Uruguay was named country of the year by The Economist
- With low unemployment, and an expanding GDP, Uruguay was the only country in the Americas which did not technically experience a recession from 2007-2009
- Uruguay sets the benchmark in Latin and South America in terms of democracy, peace and lack of corruption. It is the second in the region in terms of economic freedom and per-capita income, and ranks very highly in terms of GDP growth, innovation and infrastructure
Investing in farmland in UruguayDue to its mild year-round climate, Uruguay has not only been the prime destinations for European emigrants seeking a new life far away from the ravages of wars and famine, but a prime source for beef and timber. With its fertile soil, with favourable soil properties and medium high nutrient content, the country is one of the largest exporters of beef (21% of total exports).
Bloomberg reported in 2015, that farmland prices in Uruguay have continued climbing and are forecast to continue to do so. According to government data, a hectare sold for an average of $3,934 in 2014, up 12 percent from the prior year and 10 times the level seen about a decade ago. By investing in forestry in Uruguay, you are buying a piece of agricultural land which will increase significantly in value with the development of the forestry industry and the growing demand for timber.
Investing in Forestry in UruguayThe forestry industry in Uruguay consists of various activities that range from seed and seedling production to the final shipment of finished products. This is very much a growth sector - timber output rose 2.5-fold between 2000 and 2013 and the forestry sector’s contribution to the country’s gross domestic product (GDP) doubled from 1.9% to 3.7% between 2006 and 2014. It’s estimated that before long, this sector will soon generate more revenue for the economy than the strong meat and soy sectors.
Here are a few great reasons to invest in forestry in Uruguay -
- According to the Uruguay Investment and Export Agency, forestry exports currently account for 13% of the country’s total exports, with 885,000 hectares of forestry plantations accounting for 5% of the national territory. There is huge scope for growth in this sector, as only 21.5% of the area declared as forestry priority has been planted
- Uruguayan plantations are well known for the high quality wood they produce, which is used for cellulose pulp production as well as for solid wood products
- The currency exchange market in Uruguay is open and there are no limits on foreign currency trading, so investments can be made in any currency
- Worldwide demand for forest products is rising. China is by far the largest producer and consumer of wood-based panels and paper and is the world’s largest importer of industrial roundwood and sawnwood, with imports surging to record levels in 2014 - by 17% and 30% respectively. Demand from China, India and the rest of the world will continue to increase, as supply decreases, so this is a very attractive market
Why Invest with JP Forestry InvestmentsThe financial experts from JP Capital Investments (JPCI) and their highly qualified local forestry partners can now help you invest safely in the fast growing forestry sector in Uruguay.
JPCI owns, leases and has access to more than 2,000 hectares of the highest quality land in Uruguay in the choicest locations, with proximity to roads and ports to minimise transportation costs. Most of our land is in the Uruguayan province of Maldonado, only 30 miles north of the famous sea-side resort of Punta del Este and 100 miles north-east of the capital Montevideo.
The potential for land appreciation here is amongst the highest in the country. Land prices have fluctuated in the past and have reached record levels between 2010-2012 of up to US$ 12,000 per hectare, but have descended to offer very interesting entry levels. We predict a rapid appreciation of land prices, fuelled not only by very strong demand of the Chinese market, but a global shortage of agricultural products and timber, one of the most important basic raw materials.
China has a growing timber deficit, predicted to reach 30% by 2020, which is driving demand for sustainable wood production, which will make both the land, and the end product grow substantially in value.
Current key projects
View over one of JP Capital’s farm land parcels
Secure a slice of the lucrative forestry sectorTurn-key investments are inclusive of fully registered land ownership in the name of an anonymous Uruguayan offshore company, all planting and maintenance costs for 10 years and everything managed through a reputable, ‘on the ground’ team, so there’s nothing for you to do but watch your money grow.
Projected returns of above 70% for the first 10 years and 85%+ for the second 10 year cut, make this a highly attractive proposition.
To find out more, contact our Forestry Investment experts, download our free guide to Forestry Investments, or subscribe to our free informative newsletter to get regular investment tips straight to your inbox.