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Uruguay's Agriculture Sector
Agriculture contributes roughly 6% to the country’s GDP (63% of it corresponds to cattle raising) and is the main foreign exchange earner, putting Uruguay in line with other agricultural exporters like Brazil, Canada and New Zealand. Uruguay’s agriculture has relatively low inputs of labour, technology and capital in comparison with other such countries, which results in comparatively lower yields per hectare but also opens the door for exports of new technologies and practices from the UK to increase yields.
With just 3.5 million people, Uruguay exports food for more than 30 million people in 140 markets and has the potential to produce food for over 50 million people. The sector requires greater efficiencies to thrive. UK companies with innovative agritech solutions will find in Uruguay a secure and reliable market in South America.
Key facts:
- 3 cows and 2 sheep per person
- total agricultural area of 16.4m hectares: 42% are destined to cattle breeding, 30% to dry farming, 15% to forestry, 11% to rice plantations and 2% to intensive agriculture
- Forestry represents 3.6% of total GDP and has an average annual growth rate of 7.6%
- biggest investment in the history of the country was in 2019 (US$3bn) with the installation of the third high-tech pulp mill in the country
Doing Business in Uruguay
- strategic location in MERCOSUR and Southern Cone
- strong democratic tradition, with social, political and economic stability
- high level of education, life quality and security
- pro-business legal framework
- international financial marketplace: banking secrecy protected by law
- free capital and dividends remittance (exchange of foreign currency, transfer and/or repatriation)
- preferential tax regimes
