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URUGUAY – Update on La Esperanza farm activities (January 2019).

Situation/weather: The farm is currently in very good shape as you can see. We did not register the same wet month of December we faced at Santa Maria; rainfalls recorded were on average levels but winter rains were particularly dense during July and August where we registered in aggregate 529 mm of water versus 196 mm on a historical average basis. These rains have been beneficial for soils and pastures which could recover from the intense drought we faced during January through April 2018.

Crop activities: Around 690 ha have been planted with soybean (only one plot of 50 ha could not be sowed due to soil conditions) and the crop is developing just fine, even better than in Santa Maria farm. We hope that the situation will go on until blooming stage and harvest.

In addition, we have sowed 84 ha of sorghum and the crop is developing very well (4.5 t/ha yield are expected). This crop is going to be used to feed the animals to complement the dried fodder. Sorghum is a crop with many advantages: it’s a rustic crop, input-efficient and simple to cultivate.

Sorghum needs mostly nitrogen, but little phosphorus and sulphur. Regarding phytos use, only one or two applications of herbicides are needed. The crop does not require insecticide or fungicide.

Cattle operation (3,780 heads): 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 576 tons of meat with an average herd of 3,900 heads.