In the XVI century, Hernadarias, Governor of Buenos Aires, traveled around the actual Uruguayan territory and inform the King of Spain that the land was excellent for cattle rising. As he had predicted, the cattle troops released in the territory, bred so fast that in few years they had spread and populatedd the whole territory. This episode gave birth to the beginning of the Uruguayan colonization and the construction of Montevideo. Five centuries have passed and Uruguay is still the best place in South America to raise livestock because of Uruguay’s natural conditions; mild weather, smooth topography, fertile land and plenty of water from the country’s several rivers and streams. The legal system concerning livestock works perfectly due to the long tradition Uruguay has in this sector.
Uruguay has been declared free of such cattle plagues as foot-and- mouth diseases or the “mad cow” disease by the OIE. This opened access to several and major international beef markets, including the U.S and other NAFTA countries. Uruguay beef exports to the U.S. have increased at a staggering rate and is estimated that sales will continue to increase. Most importantly, nearly all its 12 million beef cattle are of English genetics — Hereford and Angus —the best quality beef, a fundamental difference with Brazilian Zebu cattle and Argentina mix breeds.
Moreover, it is considered one of the safest businesses in the sector, due to the historical price stability of beef over the last years. Recreational land prices are lower than the agricultural land prices but with excellent yearly cash flows and land appreciation rates.
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