Investment opportunities in livestock industry in Uruguay

2021-07-22
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Industry: Agribusiness - Commodities and Trade Region: Latin America and the Caribbean Transaction Price: US $10 million Method of transaction: Equity investment

Description: The company ‍ is a company that buys the savings of city dwellers on the company's leased land in exchange for a fixed interest rate and a guarantee of ownership of the animals. The company

Details: Uruguay is one of the largest livestock producers in the world. Beef is Uruguay's biggest export, and it has more cattle per capita than any other country. It is also the largest beef consumer in the world.

On enterprise

The company, ‍, is a company that uses the savings of city residents to buy cattle on leased land in exchange for a fixed interest rate and a guarantee of ownership of the animals.

After 20 years of operation, the company now manages 70,000 head of cattle, owns 50,000 hectares of land and is growing. At present, the cattle managed by the company are provided by 700 individual investors, and the leased land is operated by the company steadily, with steady income. Through this model, the potential production of beef is about 5,000 tons, part of which is based on a genetic modification program for Angus cattle, which is currently sold grass-fed beef in the United States under its own brand (Del Terruno), derived from the top 5% of Angus cattle.

Investment projects

We are offering investors the transfer of 50,000 hectares of land for the purchase of livestock ownership from the current owners (our investors) for payment equivalent to the working capital we will manage for the next year and expertise acquired over the course of 15 years of operation.

Investment advantage

Prospects for future initial investment include four major advantages

1. Immediate yield is stable at about 10%. In addition to stable yield, there is additional floating yield between 0% and 10%. At present, stable returns correspond to the interest of the investor who owns the animal, and additional floating returns are the management benefits generated by the payment of fixed income.

2. Growth prospects under the same system are at least 10 times the current size.

3. Possibility of realizing vertical development of supply chain. Such as selling meat plants, adding new links (such as fattening farms).

4. Ensure that investors can automatically have a supply of 5,000 tons of beef, which is the best quality beef in the world.