Crops activities: Over 710 hectares are currently sowed with soybean. We are targeting a yield of 2,5 tons/ha.
We are also going to sow 70 hectares with sorghum which should produce 330 tons of grain. We have given for rent 400 hectares to a third party for rice production.
Cattle activities: The entire herd is in very good shape and has access to dense pasture. For the current cycle, we are expecting to produce 530 tons of meat with an average herd of 4,000 heads.
We will have around 1,590 cows in spring service. Autumn service of heifers took place (insemination of 380 heads) and we obtained a pregnancy ratio close to 92%.
Winter crops: 100 hectares planted with barley have been harvested so far and 264 hectares are remaining.
The 40 hectares planted with OAT are almost harvested. Our OAT production is directly delivered to a Uruguayan malt house with which we are cooperating since years.
Summer crops (Soybean & Corn): 500 hectares are planted with soybean #1, of which 425 hectares have already been sowed. We are targeting a yield of 2,8 tons/ha. We will then double–crop soybean over 400 hectares.
As for corn, we are going to start soon with the sowing of 290 hectares. We are targeting a yield of 5,5 tons/ha for this crop.
Cattle activities: The entire herd is in very good shape and has access to dense pasture as you can see. For this cycle, we are targeting to produce 475 tons of meat with an average herd of 3,100 heads.
Currently, we have around 920 cows in spring service.
Weather: October and November were very wet months. We registered respectively 441 mm of rain vs 255 mm as historical average for October and 427 mm vs 193 mm as historical average for November. For the calendar year 2017, we already registered 1,000 mm rain above the 12 months historical average, and December is forecasted to be humid.
Nevertheless, the World Meteorological Organization (WMO) is announcing for 2018 the likely arrival of the opposite phenomenon for the region with El Nina event.
Sowing: Over 1,000 hectares have been sowed so far and around 250 hectares are in progress, delayed by weather conditions. Our target for this campaign is to produce 9,000 tons of paddy rice.
The planted area is developing very well as you can see, thanks to the heavy rains which irrigate naturally the fields (ie less artificial irrigation via pumping is required). What helps the development of the crop on one hand is hurting the end of the sowing.
Optimization of the irrigation system: As previously mentioned, we are performing some adjustment in the irrigation system in order to have a more efficient and secure use of water. Part of them have been completed like the direct connection of the main pump station with the Master channel, short cuts in some connections and aerial filling system of key channels, generating future efficiencies in maintenance.
Remaining adjustments are going to be performed after the harvest will be completed in February as we want to connect the Master channel to the artificial lake (Reservoir).
The Finnish pulp and paper maker UPM (listed on Nasdaq) and the Government have signed a preliminary agreement for the construction of a new pulp mill ($2.32 billion) to be located close to the city of Paso de Los Toros, in the department of Durazno. The Government will develop the rail and road network by funding the construction and long-term maintenance of the network.
If UPM decided to move forward, the mill will have an annual capacity of about 2 million tons of eucalyptus market pulp. The impact of this project for Uruguay is estimated at 2 GDP basis points and more than $1 billion in export revenues each year.
The project will be really structuring for the country on account of its importance for the economy of Uruguay and for whole infrastructures it will create.
A relatively wet winter: Cumulative rainfall for July-October period was 501 mm, +26% compared with the historical average for the same period (August and September were particularly wet). However, the climate of the last part of October and first half of November was more favorable, which should limit problems especially for crop activities.
Winter crop: 374 hectares were sowed with barley (expected yield of 3.5 tons/ha) and harvest will start soon. The partly heavy rain registered after sowing period are causing concerns about barley quality in Uruguay.
Most important factors limiting crop production are diseases, favoured by high moisture during spring time, and abiotic stresses such as excess rainfall, high temperatures during grain filling, and drought during part of the growing cycle mostly in late sown crops. Sowing time is June and July, but later sowing dates are frequent due to excess rainfall.
Cattle activities: Autumn service of heifers took place (insemination of 306 heads) and we are very proud to obtain a pregnancy ratio of 93%. They are in very good shape and have access to dense pasture.
Below you will find some young steers. You can notice the uniformity of the herd which illustrate work performed since year in genetic selection and ongoing hard work of the farm personal.