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Uruguay – Update on La Esperanza farm activities (December 2017).

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%.

Uruguay – Update on Santa Maria farm activities (December 2017).

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 doublecrop 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.

Uruguay – Forestry business is attracting investors’ interest (November 2017).

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.

“Press Releases UPM dated 11/08/17”

Uruguay – Update on Santa Maria farm activities (November 2017).

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.

Uruguay – Support provided to Melo’s hospital (La Esperanza farm area – July 2017).

We decided to provide some support to the maternity and pediatric department of Melo’s hospital by buying some equipment that were sorely lacking. We place emphasis on safety and quality for kids as well as providing mothers-to-be with the most comfortable environment. Therefore, we offered to the unit 10 reclining armchairs, breast pumps, metallic wardrobe and bilirubin measure equipments.

Below you will find some pictures taken at the event organized by MADER association at the hospital when the equipments have been supplied.

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This action has been taken via a local non-profit organization called MADER with the support of Maria, Mr Alfredo Nunez wife (Campos Purchase manager & La Esperanza Manager). We deeply thank Maria for her involvement.

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Uruguay – Floods of the Uruguay River displace thousands and affects farming (June 2017).

Climate vagaries are now affecting Uruguay. Increasing levels of the Uruguay River and its tributaries due to heavy rains have forced around thousands to evacuate their homes in Argentina, in Brazil and now in Uruguay. Here, the north-west of the country has been badly affected.

For your reference, the river flows from north to south and forms parts of the boundaries of Brazil, Argentina, and Uruguay.

Flooding Uruguay River

La Esperanza, our nearest farm which is located in Cerro largo department and bordering with the Rio Negro (a tributary of the Uruguay River), is currently affected by floods in the extensive cattle area where we intend to build a protection wall to prevent those events and release additional surface for crops and intensive cattle activities.

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Excessive rain and the accompanying flooding are causing a variety of problems for crops activities (negative impact on yields, soil saturation, leach of nutrients, delays in harvesting and delivery, etc) as well as for cattle operation (animal stress, pasture contraction, increase in loss or death for the youngest categories mainly).

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Uruguay – New preferential trade agreement with China on soybean export (April 2017)

Uruguay has just concluded a new preferential trade agreement with China for soybean exports (free of any weed – Tolerance 0% of impurities). This implies costs increase of harvest process, cleaning, classification and logistics or export companies may translated it into lower prices paid (discounts or coverage of the risk in shipping) – it’s likely that it will end up by being a combination of both above consequences.

Trade Agreement with China (Soybean)

Uruguay – Update on La Esperanza farm activities (March 2017)

Cattle operation: Dense pasture fields offer a very good coverage for our cattle. We have currently around 3,700 heads of cattle in very good shape and of high quality as you can see on the picture or on the video below.

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Below you can see some heifers which weighs between 360 and 440kg. The heaviest are going to be sold to the slaughterhouses and the other are going to Santa Maria feedlot.

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Crop operations: So far, rainfall registered is in line with annual historical average -not shortfall was recorded in January or February which are key months for crops activities (blooming stage).

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Soybean #1: 720 hectares are going to be harvested in 25 days. We increased by 30% the sowing surface of this crop as it is provide a better soil reconstitution then corn which was originally budgeted. Furthermore, given the high quality of pastures available at the farm, we don’t need corn as food supplement for the animals.

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Soybean #2: This crop was not originally budgeted but as we decided not to sow corn and want to retain seeds for next cycle, we panted 54 hectares of this crop. A treatment for insect pest is going to be applied.

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Rice: The farm is delivering very good quality and yield for this grain. However, it’s hard to compare it with our Paraguayan production as soil, climate and variety produced are completely different.

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Uruguay – Update on Santa Maria farm activities (December 2016)

A relatively dry winter: Cumulative rainfall for July-November period was 419 mm, -21% compared with the historical average for the same period. So far, no rainfall has been registered in December.

Cattle operation (total herd 2,530 heads): Since September, breeding cows are recovering a good shape as they are fed with ryegrass and third year prairies. Males and females rearing have reached a daily weight gain of 500 grams – which is good. Those animals of lees than 1 year old are in very good weight and body conditions.

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Agriculture activities:

Winter crop: Harvest of barley is completed (228 ha), we registered a yield of 3.5 tons/ha as budgeted.

Soybean #1: 484 hectares have been sowed and the crop is developing well so far (growing stage). Expected yield of 2.8 ton/ha.

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Soybean #2 : the crop was sowed on the surface previously used for barley. We expect a good development for this crop.

Corn: 436 hectares of corn are in sowing progress. Expected yield of 5.5 ton/ha.

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