MercoPress. South Atlantic News Agency

Uruguayan investors purchased 1.1 million hectares in the Paraguayan Chaco

Cattle breeding in Chaco has attracted Uruguayan farmers

Uruguayan investors have purchased an estimated 1.1 million hectares in the Paraguayan Chaco, (heartland of landlocked Paraguay) in spite of the fact land prices have quadrupled in the last two years. The record year was 2010 with 200.000 hectares.

The average exploitation in the Paraguayan Chaco has 8.000 hectares, “at first speculators arrived: they purchased land to resell for a quick profit as prices have been increasing sustainedly; now however they are mostly farmers who come to work the land and breed cattle”, said Rodrigo Artagaveytia Santayana from Estudio 3.000 in the Paraguayan capital, Asuncion.

In the Chaco region land was selling at 200 US dollars the hectare and another 450 dollars are needed to produce 150 kilos of beef, according to Estudio 3.000.

“Uruguayans are attracted by a stable legal system, good animal sanitation, Paraguay’s access to new markets and long experience from pioneers. Besides the Chaco soil is rich and virtually needs no fertilizers”, said the head of Estudio 3.000 who anticipates that more Uruguayans will be going to Paraguay to buy land in Chaco.

Besides hydroelectric energy, Paraguay’s main exports are beef and soy beans, of which the country is among the top exporters.