Investment opportunities AGRIBUSINESS

Transcription

1 Investment opportunities AGRIBUSINESS

2 1. Why invest in Agribusiness in Uruguay? Economic Importance of the Agro-industrial Sector in Uruguay Sector Description GDP Share Foreign Investment Land Valorization Employment Exports Agricultural Sector Soy Rice Wheat Animal Production Cattle Farming Sheep Farming Dairy Sector Fruit Sector Citrus Fruits Deciduous Fruit Projects approved by COMAP Sector Indicators for the Agriculture Sector Institutions and relevant stakeholders Some foreign investments in the Sector Outlook Annex Investment Promotion Scheme VAT Exemptions for certain agricultural products Soil and Water Legislation Uruguay at a glance (2015) Key economic indicators

3 Uruguay grew at an average annual rate of 4.4% between 2006 and 2016, thus becoming one of the fastest growing countries in the region. Foreign Direct Investment (FDI) has reached record levels, allowing Uruguay to rank among the largest recipients of FDI in South America (5.3% of GDP) in the last decade. Global demand for agricultural commodities shall remain steady in the coming decades, mainly sustained by the increased consumption of proteins, fats and sugars in developing countries. Uruguay is part of the main food exporting region in the world (together with Argentina, Brazil and Paraguay) 1. Uruguay has a comparative advantage in international food production. The agroindustrial sector accounted for 78% of all goods exported by Uruguay in Uruguay has 16.4 million hectares suitable for agricultural use, about 93% of the country's total land area. In addition, land value has substantially increased in Uruguay, multiplying by 8.5 between 2002 and Uruguay is internationally renowned for its production processes and the quality of several of its agricultural products. In particular, cattle farming in Uruguay includes a traceability system that allows to keep all product information since the birth of the animal until it reaches the final consumer. Uruguay has great potential to increase the production of agro-industrial goods. With a population of 3.48 million people, the country produces food for 28 million and is expected to produce enough food for 50 million people in the coming years. In Uruguay there are no limitations or restrictions on exports of agro-industrial goods. Uruguay maintains a strict policy of sustainable agricultural development, which includes, among others, plans for responsible use and management of soils, and plans for sustainable milk production The agro-industrial sector is one of the most innovative, with 25% of the total investments in innovation and almost 30% of professionals employed in innovation corresponding to food and leather production 2. 1 See: Seguridad Alimentaria Global y Recursos Naturales Agrícolas GPS, Source: Survey of Innovation Activities in the Uruguayan Industry ANII (2012). 2

4 2.1. Sector Description GDP Share As of 2002, Uruguay has experienced an uninterrupted growth process that led to quadruple its per capita income (measured in current US dollars), which rose from USD 4,229 (2002) to USD 15,414 (2015) 3. Uruguay s GDP grew by an annual average rate of 4.4% during the last decade, displaying a remarkably higher dynamism than that of previous decades 4. Chart 1: Uruguay s GDP by activity sector (Part. % 2015) Construction 9% Transport, storage and communications 7% Electricity, gas and water 2% Manufacturing industry 11% Commerce, restaurants and hotels 13% Other 10% Agriculture, livestock and forestry 7% Agriculture 3.0% Livestock 3.7% Other services 40% Forestry 0.3% Note (*): Refers to electricity, gas and water supply. Source: Uruguay XXI based on Central Bank of Uruguay (BCU). The agriculture-livestock sector and agro-industrial chains fostered this dynamism as they play a key role in the uruguayan economy. The agro-industrial sector accounted for approximately 12.4% of Uruguay s GDP in This participation was equally shared between the primary sector (agriculture, livestock and forestry) and agro-related industries, with 6.2% each 5. Moreover, other sectors, such as Construction and Transport, Storage and Communications, are also strongly associated to the development of the national agriculture and agro-industrial sectors (See Chart 1). In that regard, according to estimates from Red MERCOSUR-FAO, the agricultural sector had the greatest diffusion effects on the economy as a whole at the beginning of this decade 3 Source: Uruguay XXI based on BCU. 4 Source: Uruguay XXI based on BCU and Cepal. The annual average growth of the economy was 1.1% in the 80 s and 3.3% in the 90 s. 5 Industries related to agriculture also include: Manufacture of food products, beverages and tobacco (an estimate of the GDP of manufacturing beverages and other food products was deducted from the GDP of this sector) and "Manufacture of paper and paper products and cardboard. Source: Uruguay XXI based on BCU. 3

5 compared to the rest of the productive activities. The multiplier effects of agricultural activity on production and employment were above the average for all branches of activity 6. As Chart 2 below shows, the agro-industrial sector experienced a significant expansion during the last decade. In particular, the GDP of Agriculture, Livestock, Hunting and Forestry grew 2.8% annual average between 2002 and Chart 2: Uruguay s GDP per sectors (Base 100=1997) Agriculture, cattle farming, hunting and forestry Food products, beverages and tobacco Source: Uruguay XXI based on BCU. Within the agricultural-livestock sector, the agricultural sector was remarkably dynamic due to the cultivation of soy. Chart 3: GDP Cumulative real growth % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 80% 74% 42% 21% Total GDP Agri and cattle Crops Livestock Source: Uruguay XXI based on BCU. 6 Sources: DECON 2009 Cuál es la importancia real del sector agropecuario sobre la economía uruguaya? CEPAL 2014 Cambios en la dinámica agropecuaria y agroindustrial del Uruguay y las políticas públicas 4

6 Foreign Investment The increase in the international price of commodities during the last decade, Uruguay s appropriate business climate and clear comparative advantage in the production of land intensive goods had a significant impact on the inflow of Foreign Direct Investment (FDI) to the national agricultural and agro-industrial sectors. Between 2004 and 2015 FDI in land totaled USD 1,757 million, which includes the purchase of land and costs associated with the first production. In 2015, said investment accounted for 1.4% of the total FDI in the country. With regard to FDI per sector, particularly in the case of "Agriculture, Livestock, Hunting and Forestry", in the period investment amounted to USD 3.65 billion and accounted for 8% of total FDI in The agricultural sector received the most investments, mainly related to the incorporation of technology in grain production. In this regard, Argentinean companies had a decisive influence. Some of the largest grain traders in the world have also settled in the country (ADM, Bunge, Cargill and Louis Dreyfus, Noble Group, Nidera, among others). On the other hand, FDI stocks in the food processing industry amounted to USD 1,239 million between 2005 and Land Valorization The important development of the agriculture and cattle farming sector in Uruguay in the last decade is clearly reflected by the evolution of the price of land. Data provided by the Direction of Agricultural Statistics (DIEA - MGAP) regarding the purchase of land for agricultural use shows that the average price of transactions in 2002 was USD 385/ha, while in 2016 it rose to USD 3,584/ha. Thus, in 14 years the price of land has practically increased tenfold, which, since Uruguay has million hectares of agricultural use, makes the estimated total value of land in Uruguay reach USD billion in 2016, a remarkable increase from USD billion in Chart 4: Average Hectare Price for Agriculture/Livestock Use (USD/ha) Note: (*): Data from first semester. 7 Source: Uruguay XXI based on BCU. The amount may be overvalued since the sector Elaboration of Food products and Beverages was considered in its entirety, without excluding the subsector Beverage Production which does not manufacture products of agricultural origin. 5

7 Source: Uruguay XXI based on DIEA MGAP. Between 2000 and the first semester of 2016, 35,467 operations for the purchase of land were closed, which involved 7.9 million hectares. The total amount accumulated in this period reached USD billion and in particular during the first semester 2016, it amounted to USD 296 million. Chart 5: Total amounts transacted per year in land sale and purchase (USD Million) Note: (*): Data from first semester. Source: Uruguay XXI based on DIEA MGAP. Similarly, the average price of land lease has shown a remarkable dynamism since the beginning of the last decade. From its lowest, USD 24/ha per year in 2002, the cost of leasing land increased fivefold thus reaching USD 124/ha in Chart 6: Average Price of Land Leases (USD/ha per year) Employment Source: Uruguay XXI based on DIEA MGAP. The number of people employed in the agro-industrial sector amounted to approximately 228,000 in 2016, accounting for 15% of the total labor force in the country during that year. When analyzing the figures of the sector, the subsector "Agricultural production" employed 72% of workers. Within this subsector, the largest number of people are employed in the "Cattle Raising" (64,000) and "Growing of cereals (except rice), leguminous and oil seed crops" (28,000) categories. 6

8 Table 1: Employed Personnel Agro-industrial Sector People Agriculture and Cattle Production 163,322 Food Products Preparation 46,733 Forestry Sector 15,772 Fisheries and Acquaculture 2,130 Total 227,957 Source: Uruguay XXI based on data from BPS by August It is worth noting that these figures refer only to direct employment. In this regard, the agroindustrial sector has also had an impact on the generation of indirect jobs and the development of local economies Exports With a reduced domestic market of only 3.48 million people, the growing production of the country s agro-industrial sector is destined to exports. In this regard, the total food exports of the country cover the food needs of 28 million people in the world. 9 The agro-industrial sector plays a key role in the international insertion of Uruguay, which is reflected in a share of almost 78% of the total value of goods exported by Uruguay (2016). That year, agribusiness derived sales amounted to approximately USD 6.44 billion. In 2016, the main export product was beef, followed by forestry products (mainly cellulose) and soy Source: Uruguay XXI based on data provided by BPS by August The following CIUU divisions were included in the agro-industrial sector: Rev. 4: 01, 02, 03, 10, 11, 12, 16 and Source: OPYPA Yearbook Source: Uruguay XXI based on data from the National Customs Authority (DNA in Spanish), Nueva Palmira and Montes del Plata. 7

9 Chart 8: Agro-industrial Exports - Main products 2016 Source: Uruguay XXI based on data from D.N.A., Nueva Palmira and Montes del Plata In terms of destinations, 28% of agro-industrial sales were destinated to China, main destination of beef, cellulose, soy and wool as well as meat byproducts and preparations. Brazil is the second export destination, and the main destination for dairy, fish, rubber, sheep meat and some grains (malt, wheat and barley). Chart 9: Agro-industrial Exports Main destinations China Out of scale: 31% Brazil 10% United States Netherlands 8% 8% Italy 4% Germany Mexico 3% 3% Venezuela Turkey Israel 2% 2% 3% Source: Uruguay XXI based on data from D.N.A., Nueva Palmira, Montes del Plata and Penta Transaction. 8

10 MERCOSUR EU Negotiations FTA negotiations between Mercosur and the European Union would have relevant implications in the Uruguayan agricultural sector. The agreement seeks, among other purposes, to boost trade through the elimination of tariffs, which is why the inclusion of agricultural goods in the negotiation is decisive for all MERCOSUR partners. All MERCOSUR member states are strong exporters of agricultural raw materials to the EU. In fact, more than 60% of the off-zone imports of beef and poultry into the EU comes from Mercosur. In the case of Uruguay, the main goods exported to the bloc are cellulose, beef, soy and wood, which accounted for 76% of total exports in In the event that negotiations result successful, potential increases in quotas in some products, and lower tariffs, would allow the increase of volumes placed in the European bloc. In addition, the market would open to new products. In 2015, Uruguay paid approximately USD 125 million in tariffs on exports to the EU, 88% of which corresponds to beef exports, whereas the rest is mainly citrus and leather. Brexit brought negotiations to a halt, given that the United Kingdom was a relevant player in the talks between the blocs, and that negotiators did not expect the result of the referendum. Therefore the bloc will have to redefine its terms for the negotiations, which may slow down but should not cease. 2.2 Agricultural Sector In the last decade Uruguay has witnessed great changes in the agricultural sector. This transformation was led particularly by the agriculture sector which recorded a strong expansion of production as a result of increased demand and international prices. Chart 10 illustrates the evolution of agricultural GDP and shows its remarkable growth since This represented an average annual increase of 6%, which doubled the growth of the whole primary sector of Uruguay in that same period. 170 Chart 10: Uruguay s Agricultural GDP (Base 100= 2005) Source: Uruguay XXI based on BCU. 9

11 Uruguay has historically been a cattle raising country; however, between 2000 and there was a remarkable 138% increase of land for agricultural use. This expansion was led by the outstanding increase in the soy cultivation area, which in turn affected the growth of the wheat cultivation area. The arrival of foreign investment (mainly from Argentina) promoted and accelerated the modernization of the agricultural sector 12. Chart 11: Uruguay s main crops Sown Area (Thousand ha.) Other Rice Wheat Soybeans Note (*): Estimated area 2015/16 Source: Uruguay XXI based on DIEA and Deloitte Soy Soy cultivation began to gain increasing importance in Uruguay due to the growth in global demand led by China. The rise in international prices which took place from the first decade of this century, along with new technologies for sowing and seeds, together with foreign investment in the sector, generated significant increases in the cultivated area and crop yields. As a result of this phenomenon, soy has become one of the country s main exports. Since the harvest, soybean has been the crop with the largest cultivated area in the country 13. After a peak yield in the 2012/13 harvest, the oilseed yields tended to decline, totaling 1,937 kg / ha in the 2015/2016 harvest, a yield 17% lower than the previous harvest, explained by unfavorable climatic conditions, water deficit in the middle of the harvest and 11 Source: Agriculture/Livestock Census from DIEA MGAP. 12 The major contributions appear identified with "organizational and process related" innovations rather than under crop "agronomy". Source: Information provided by Opypa. 13 It is expected that in the next years sown area will not experience great growth, due to the implementation of plans for the responsible use of soils. This is related to the goal of sustainable production and defense of the country's natural resources. See Section

12 copious rains in April which affected crops at the level of production, logistics, harvest conditions, and crop quality 14, negatively impacting both the productive and export chains. Chart 12: Soy- Production and yield Thousand Tons Kg/ha Production Yield Source: Uruguay XXI based on DIEA The latest harvest combined both sown area and yields per hectare lower than those of the previous harvest, which could not be countervailed by the slight rise in average export prices. The reduction in the sown area was explained by a less favorable market environment, while the yields were affected by the aforementioned climatic conditions. With regard to exports during the past decade, the overall increase in the international price and the quantities sold led to a significant rise in Uruguay s soy exports. Between 2001 and 2014, exports increased from USD 1.6 million to USD 1.6 billion, which led to its consolidation as the country s largest export product. Moreover, in recent years Uruguay has positioned itself among the six largest soy exporters in the world 15. During the same period, the volume increased from 11,000 tons to 3.2 million tons, which represents a 50% average annual growth. In 2016, total exported soy reached 2.3 million tons, and the value was slightly above USD 864 million. As in 2015, soy ranks third in products exported by Uruguay. 14 Records showed burnt and early germinated grains 15 Ranking: Brazil, U.S.A., Argentina, Canada, Paraguay, and Uruguay for Source: TradeMap 11

13 Chart 13: Soy Exports and Average Export Price (USD Million and USD/ton) Export (US$ mill) (left axis) Price (US%/Ton) (right axis) Source: Uruguay XXI based on DNA. In accordance with the general rise in the price of commodities in international markets, the average price of soy exported from Uruguay grew 158% between 2001 and 2016 (Chart 13). Notwithstanding the above, significant decreases in international oilseeds prices have been observed since the end of 2012, as a result of the increase in supply at the international level. As for the destination of Uruguayan soy exports, China has remained in the first place. In 2016 the Asian country had a 73% share of the total exports. Chart 14: Soy Exports by Destination Part. % 2016 Netherlands 5% Argentina 6% Other 10% Germany 7% China 73% Source: Uruguay XXI based on data from National Customs Authority and Nueva Palmira. Additionally, exports of soy seed for planting amounted to approximately 2,767 tons in Production is mainly directed to the United States, which is why the production process and 12

14 commercialization of the seeds are counter-season 16. The production and subsequent export of seeds is a higher added value alternative for the agricultural sector. Table 2: Soyb Seeds Exports Year USD Million Tons 27 65,142 3,039 4,035 6,628 4,251 2,966 4,015 2,767 Source: Uruguay XXI based on data from National Customs Authority. The recent official visit to China led to the conclusion of an agreement between China and our country - through INIA and the Chinese Agricultural Academy - for the joint production of nontransgenic soy for human consumption 17. China has several varieties of the oilseed, a fact that would allow Uruguay access to varieties which generate higher yields by ensuring soil adaptation. 18. Finally, for the next harvest, estimations indicate that the sown area shall remain stable and that there will be an improvement on average yields, compared to the retraction present in the previous harvest. This would result in higher crops in the inter-annual comparison, which would allow it to remain as the country s main crop Rice Rice cultivation began to gain importance in the country after Moreover, in the 80s exports started to increase in connection with successive trade agreements made with Brazil. For decades, rice remained the country s main agricultural export product, a position which was lost in the last decade against soy exports. The use of state-of-the-art technology throughout the value chain is a feature of the industry which earned Uruguay an excellent international reputation as rice producer and exporter. Care for the environment and sustainability of rice systems have been a priority for this sector, and today studies and indicators confirm its low environmental footprint and product safety. The sown area for rice was 161,194 hectares in the 2015/2016 harvest, which represented a 0.3% increase over the previous harvest. However, both average export prices and yields showed downward trends. 16 Source: Opypa Yearbook, 2015, p Most of China's soy demand is used for animal feed. Soy destined for human consumption is non-transgenic. 18 Source: El Observador: Uruguay y China producirán soja no transgénica para alimento humano 19 Source: El Observador Los productores de soja van en busca de 3 millones de toneladas 13

15 Thousand Tons Chart 15: Rice- Average Production and yield Kg/Ha Production Yield Source: Uruguay XXI based on DIEA. Technological improvements implemented in the last decade resulted in one of the highest harvest yields in the world. In the 2015/16 harvest yield amounted to 8,094 kg/ha, 7% lower than the previous one which had reached a record of 8,686 kg/ha. Thus, rice production in Uruguay amounted to approximately 14.7 million tons in the last decade. The highest figures were recorded in the harvest, which coincided with the increased sown area during that period. However, the greatest yield was recorded in the harvest. In the latest harvest ( ), production totaled 1.3 million tons, 6% less than the previous one. 20 In the last decade rice exports more than doubled in exported amounts, triggered both by a growth in volumes and an improvement in collocation prices. However, just like the previous year, in 2016 the average export price decreased, which resulted in a slowdown in the growing trend which had been observed in previous years. High technology applied throughout the agro-industrial chain and an effective integration of all its components have allowed Uruguayan rice to be positioned as a "premium" product in international markets, thus currently obtaining similar prices per ton to those of the traditionally reference countries with regard to rice quality. In 2016 this crop was the second agricultural export product of the country with a value of USD 431 million. These figures make Uruguay one the biggest exporters in the world: in , it ranked seventh as rice exporter worldwide and first in Latin America. 20 Source: Uruguay XXI based on data from DIEA. 21 Latest available data for international comparison 14

16 Table 3: Rice Exports Year USD (million) Ton (thousand) USD/Ton Source: Uruguay XXI based on DNA. With regard to the main destination markets, in 2016 sales focused on Peru and Brazil, both with a 24% share, and on Mexico, with a 7% share Wheat Wheat has traditionally been the main winter crop in Uruguay. It was generally aimed at catering for the domestic market, with exports in the event of surplus, should it occur. Ever since the country s agricultural recuperation during the last decade, wheat production has significantly grown. With a sown area of around 330 mil hectares in the 2015/16 harvest, production amounted to approximately 1.2 million tons, a 10% improvement compared to the volume reached in the previous harvest. There were improvements in crop yield which was around 3,610 kg/ha and resulted in a 34% improvement with respect to the previous harvest. Both the climatic factor and the absence of sanitary issues positively affected results compared to the previous harvest 22. Thousand Tons Chart 16: Average Wheat Production and Yield Kg/Ha Production Yield Source: Uruguay XXI based on data from DIEA When considering foreign sales, wheat has become the third grain in terms of export value in recent years. Until 2012 exports increased significantly, only to experience a sharp decline in production the following year. The volume of exports recovered in 2014, with a 20% growth over the previous year, but due to a 15% decrease in price, the value of exports only grew 2% 22 Source: Uruguay XXI based on DIEA, Opypa and Deloitte. 15

17 compared to Another strong retraction in exports occurred in 2015, with volumes 43% lower than those placed in Chart 17: Wheat Exports (USD Million) Source: Uruguay XXI based on data from National Customs Authority. Wheat sales were mostly directed to Brazil, which in 2016 represented an 85% of the total exports. Some destinations with minor shares include Vietnam, Morocco and Venezuela 23. Other grains Barley and Malt Malting barley production in Uruguay has historically been destined almost entirely for export and subsequent production of malt by the Brazilian industry. Currently the planting of feed barley for export has gained certain momentum. Phytosanitary agreements have been recently executed in order to enter different markets, including China. In the 2013/14 harvest, despite the 38% drop in the sown area, improved productivity resulted in a marked recovery in production, which reached 316,000 tons, 15% higher than the previous harvest. The yield of 3,510 kg/ha set a new record for barley growth in the country. The 2015/2016 harvest showed a slight decrease in the sown area, but a significant improvement in yield per hectare led to a 46% improvement in production compared to the previous harvest. Table 5: Barley Crops Cultivated Area, production and yield Harvest 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 Sown area (thousand ha) Production (Thousand Tons) Var. % 14/15 Var. % 15/ % -7% % 46% Yield (kg/ha) 3,102 3,443 2,245 3,152 3,294 3,010 3,126 1,878 3,510 2,444 3,840-30% 57% Source: Uruguay XXI based on DIEA and OPYPA. 23 Source: DNA and Nueva Palmira. 16

18 In the last decade malt exports were around 3 million tons and last year in particular, they totaled USD 158 million. In 2016, average export prices reversed the downward trend they had experienced since Given the intra-company nature of this trade with Brazilian brewing companies, 87% of exports of Uruguayan malt had the northern country as destination. Chart 18: Barley Malt Exports Corn US$ mill. (Left axis) Miles de ton (right axis) Source: Uruguay XXI based on data from DNA. Corn cultivation has historically been oriented towards the domestic market; however, as of the last decade there has been a significant increase in production which generated an exportable surplus. This was favored by an increase in sown area and crop yield within a context of increasing international prices driven by rising demand, both for conventional uses (food and animal feed) and for ethanol production. On the other hand, exports peaked in 2013, at around USD 71 million. However, since that harvest, exports experienced a significant reduction to a total of USD in No fixed destinations for this product were recognized, but instead varied depending on harvests. In 2016, France and Italy were the main destinations, receiving 81% and 15% of exports of the product respectively. Table 6: Corn Crops Cultivated Area, production and yield Harvest Sown Area (thousand ha) Production (Thousand Tons) 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/ Var. 15/14 Var. 16/ % 0% % 2% Yield (kg/ha) 4,184 5,757 4,153 3,085 5,510 3,574 4,264 5,648 4,306 5,761 5,867 34% 2% Source: Uruguay XXI based on DIEA and OPYPA. 17

19 Sorghum In recent years there has been an increase in sorghum cultivated areas as a result of an increase in the use of the cereal for animal feed, and the growing demand of ALUR 24, which uses this grain for the production of biofuels. For ethanol production the company prioritizes the use of this cereal as raw material due to its low cost, high performance and hardiness. In this sense, ALUR has been developing a procurement policy. Table 7 Biofuel Performance by Raw Material in Uruguay Biofuel Raw Material Litre/ha Biodiesel Ricin Biodiesel Rapeseed (Sorghum) Biodiesel Sunflower 890 Biodiesel Soy 420 Source: Created by Uruguay XXI based on data from IICA 2010 ALUR plants in Paysandú and Bella Unión have a joint production capacity of 100 million liters per year and use sorghum and sugar cane as raw materials. Bioethanol is supplied to ANCAP for mixing in the different varieties of fuels. Table 8: Sorghum Crops Sown Area, Production and Yield Harvest 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 Sown Area (thousand ha) Production (Thousand Tons) Var. 15/14 Var. 16/15 15,8 42,8 37,7 68,1 35,3 31,4 88,2 49,0 75,4 81,7 67,0 8% -18% % -27% Yield (kg/ha) % -10% Source: Uruguay XXI based on DIEA. 24 ALUR is a company devoted to development of biofuels among other activities: 18

20 2.3. Animal Production Cattle Farming Cattle Farmingis one of the most important activities in Uruguay. Its sustainable production system based on animals which graze all year round and are fed on natural pastures makes Uruguayan meat natural, safe, highly nutritious, extra lean and with a distinctive flavor 25. Additionally, it enjoys great international prestige, and is exported to 50 countries, which positions Uruguay among the top 10 beef exporters in the world. 26 The sector has a production traceability system which makes possible to know all relevant product information, from the birth of the animal until it reaches the final consumer. This allows for certification of food quality and safety, which has been widely accepted in the most demanding international markets, and has positioned Uruguay as a world reference in traceability process for meat products 27. Despite increasing competition from agriculture for the use of land, cattle raising has not lost its importance in recent years. While many production units have been converted to agricultural plantations, the number of cattle has remained relatively stable over the decade. On the other hand, animal slaughter experienced a slight drop during the period. Cattle stock reached approximately 12 million in 2015, the third best year of the decade in terms of stock. Meanwhile, slaughter figures involve over 2.2 million head of cattle 28. Chart 19: Cattle Stock and Slaughter (Thousands/Head of Cattle) Cattle stock (left axis) Slaughter (right axis) Source: Uruguay XXI based on DIEA During 2010 there was a fall of approximately 650,000 head of cattle in stock due to a low calving rate; however, stock rebounded in the following years. 25 Source: Uruguay XXI based on INAC. 26 Source: Uruguay XXI based on Trade Map. 27 Source: Uruguay XXI based on INAC. 28 Source: DIEA 19

21 Beef production for the year ended on June 2016 amounted to 1.1 million tons of live cattle, 2% higher than that of the previous year. Production of the last financial year is classified as follows: 91% slaughter beef, 3% inventory differences and 6% live cattle exports. Table 9: Beef Production (Thousands of tons/live cattle) Agricultural year 10/11 11/12 12/13 13/14 14/15 15/16 Slaughter Stock Variation Live Cattle Exports Source: Uruguay XXI based on OPYPA. When measuring price development in the last decade, it is worth noting that the average export price remained relatively high in the agricultural year 2015/2016, despite showing a slight 6% decrease compared to the previous year Chart 20: Beef Average Export Price (USD/ton - dressed weight) Source: Uruguay XXI based on INAC. Beef has traditionally been Uruguay s main export product. Although in recent years soy exports have led that ranking, in 2016 beef regained its traditional position. As Table 10 below shows, exports have been very dynamic over the last decade. Since the foot-and-mouth disease crisis in 2001, the country has recovered nearly all of its markets and has even opened new ones. In 2016, beef exports totaled USD million, which represented a 2% increase over the previous year. Thus, beef had a 17% share of the total sales. 20

22 Table 10: Uruguay - Beef Exports Year USD Million ,103 1,295 1,391 1,292 1,459 1,421 1,443 Thousand tons - Dressed weight Avg. price USD/ton 1,922 2,034 3,175 2,443 3,012 3,815 3,673 3,638 4,001 3,670 3,337 Note: Items 0201 Fresh or chilled beef and 0202 Frozen Beef are included. Source: Uruguay XXI based on DNA (amounts) and INAC (volume). The following chart shows that the increase in export value in the past decade was based on the increase of the price received, mainly associated to sales to the European Union. Exported volumes grew 12% in 2016 compared to the previous year, which allowed for compensation after the 9% retraction in prices Chart 21: Beef Exports Index (Base 2003=100) Average price Volume Source: Uruguay XXI based on National Customs Authority and INAC. In 2005, the main destination accounted for 64% of meat exports, whereas in 2016, the first market accounted for about half of said share. In 2016 placements of chilled beef were directed mainly to the European Union and Brazil. On the other hand, exports of frozen beef are more diversified and appear led by China, NAFTA, Israel and the European Union. China is the main individual destination of Uruguayan meat. Its share as a destination, measured in amounts, rose from 0% to 35% in eight years, even though average export prices in this market are lower than the total average. In terms of volume, this share was higher than 45% in This increase in demand is based on a structural change in Chinese society, with increasing urbanization and consequently a shift towards a diet with a higher protein content. However, work continues to be done in order to achieve the opening of new markets, and negotiations to enter the Japanese market are currently in their final stages. 21

23 Chart 22: Chilled Beef Exports by destination (Part. % 2016) Chart 23: Frozen Beef Exports by destination (Part. % 2016) Brazil 9% South Korea Brazil 2% 2% Canada 6% Other 5% European Union 70% Chile 8% European Union 10% China 47% United States 6% Switzerland 5% Israel 11% Russia 1% Other 1% United States 16% Source: Uruguay XXI based on data from National Customs Authority Sheep Farming The sheep industry enjoys a long tradition and great prestige in Uruguay. The quality of the product positions Uruguay as one of the top 15 sheep meat exporters in the world and the leading exporter in the region. It is also the main exporter of combed wool in the region, ranking fifth in the world. In the last 20 years, the demand for wool has globally declined and this led to a fall in the stock of sheep in all major producing countries, including Uruguay. 12,0 11,0 11,1 Chart 24: Evolution of Sheep Stock (Millions) 10,0 9,0 8,0 8,2 7,4 7,0 6,6 6,0 Source: Uruguay XXI based on DIEA. In this regard, sheep meat production has also shown a downward trend, whereas wool production experienced a slight increase during the past year. 22

24 Table 11: Shorn Wool Production (thousands of tons) and sheep meat (thousands of tons/ live cattle) Year Wool Sheep Meat Source: Uruguay XXI based on DIEA-MGAP. On the other hand, and in contrast with the production, exports show a growing trend during the past years. Between 2004 and 2009, this increase was led by higher export volumes, which grew an annual average of 26% and reached 25,000 tons in Meanwhile, between 2009 and 2015, the increase was due to the 10% annual growth in the prices received. External sales of sheep meat totaled USD 47.9 million in 2016 due to the 8,800 tons exported. In the coming years, a greater increase in sheep meat exports is expected, as a result of the opening of new markets (Mexico and USA) 29. Chart 25: Sheep Meat Exports Thousand tons (left axis) US$ mill. (right axis) Source: Uruguay XXI based on data from National Customs Authority In 2016, the Brazilian market concentrated about 70% of Uruguayan exports of sheep meat. Sales were complemented by placements in the European Union (17%) and China (7%). 29 Uruguay managed to access the US market with boneless sheep meat by the end of This June, sanitary regulations allowing access to bone-in cuts as of September were approved. Source: Presidency 23

25 With regard to wool, although the volumes exported showed on average a 5.8% retraction in the last decade, average prices showed an upward trend (6.1% annual average compared to equal period) which compensated for the decline. In 2016, 29,200 tons of wool were exported, which represented an income of USD 205 million. Table 12: Wool Exports - Uruguay Year Million USD Thousand tons Avg price (USD/kg) Source: Uruguay XXI based on data from National Customs Authority When observing the destination markets for Uruguayan wool, China and the European Union stand out, with 42% and 32% shares, respectively. Within the Uruguayan market, some specific fineness or qualities are complemented by imports of wool on temporary admission, which in turn complements the production of the top industry. This type of imports totaled USD 48 million in 2016, almost exclusively corresponding to dirty wool Dairy Sector The dairy sector plays an important role in Uruguay s economic structure, being one of the areas which generate the greatest added value. Given its geographical location, the country offers excellent natural conditions in terms of soils and climate which make it extremely suitable for the production of milk and provide important comparative advantages. The ability to obtain quality milk at a low production cost from pastoral and open sky systems is worth mentioning. Dairy production in the country has grown steadily between 1975 and As shown in the following chart, milk received by industrial dairy plants 30 reached a record in 2013 thanks to the 2.01 billion liters transported, practically doubling production levels of the beginning of the decade. In the harvests following that year, reception has experienced a slight reduction, although still reaching historically high levels. 30 Milk received by industrial plants 24

26 2.000 Chart 26: Milk delivered to plants (million liters) Source: Uruguay XXI based on INALE. The sector s great dynamism is explained within a context of strong productivity growth. The primary sector has continually incorporated technical advances, whether in pastures, animal feed, machinery and equipment, animal health and herd genetic improvement. The industrial sector, composed of transnational and national companies - and led by a national cooperative company - has continuously expanded its installed capacity and worked in collaboration with the primary sector. This has allowed these companies to capture all the milk produced, diversify their production in the domestic market and export several products. With a domestic market with one of the highest consumption levels in Latin America (233 liters per capita per year 31 ), any increase in production is destined for export, which currently accounts for 70% of the volume produced annually 32. In the last decade, exports had an 8% annual average increase in value and specifically in 2016 they totaled USD 567 million, a figure 10% lower than the previous year. The 3% increase in volume was not enough to compensate for the 12% fall in average export prices. Chart 27: Dairy Sector Exports Thousand tons (left axis) US$ millones (right axis) Source: Uruguay XXI based on DNA. 31 Source: DIEA Statistical Yearbook Liters of milk equivalent to a year. 32 Source: INALE. 25

27 Brazil doubled purchases of Uruguayan dairy products in 2016, compared to the previous year. Thus, it accounted for about 60% of exports, being the main destination market for Uruguayan dairy products. Purchases from Russia remained stable, and this market ranked second, as exports to Algeria - the third destination for Uruguayan dairy products - fell by 45%. It is important to note that Venezuela, one of the main destination markets for dairy products in recent years, recorded 52% lower imports in , which were virtually nonexistent in 2016, as a result of the crisis experienced by the Caribbean country. Chart 28: Exports of Dairy Products by Destination (Part. % 2016) Cuba 3% China 3% Mexico 6% Other 11% Argelia 7% Russia 9% Brazil 61% Source: Uruguay XXI based on DNA The average export price reached a record in 2014 at USD 3,906/ton. However, by 2015, prices began suffering a retraction as a result of the increase in production in the main exporting countries particularly the European Union, due to the abolition of dairy quotas- and lower demand from China. In 2016 this trend continued, leading to a 12% retraction in the average price of domestic exports, totaling USD 2,458/ton in that year. 33 Additional payment problems occurred as a result of currency restrictions. Part of the exports took place within the framework of an official agreement regarding the exchange for food for the cancellation of the debt between Ancap and PDVSA. Included in that agreement were 44,000 tons of milk powder and 12,000 tons of cheese. 26

28 Chart 29: Average Export Price of Dairy Products (USD/ton) US$/ton Source: Uruguay XXI based on DNA When analyzing dairy exports by product, it can be observed that whole milk powder (LPE in Spanish) leads the list with a 56% share of the total, followed by sales of cheese (23%) and skimmed milk powder (in Spanish LPD - 11%) Chart 30: Dairy Exports by product (Part. % 2016) Fluid Milk (UHT) 2% Whey 2% Other 2% LPD 8% Butter 7% LPE 56% Cheese 23% Source: Uruguay XXI based on DNA 2.4. Fruit Sector Citrus Fruits Citrus production has a long tradition in the country and much of it has been destined for export. The effective area used for planting citrus was 15,000 hectares approximately in 2015, half of which corresponded to oranges. Citrus production in the 2015 harvest was tons, which implies a 12% retraction compared to the previous season. 27

29 Chart 31: Citrus Production (Thousand tons) Grapefruits Lemons Tangerines Orange Source: Uruguay XXI based on DIEA-MGAP On the other hand, yields have been variable for all fruits in the last years. In particular, there was a generalized decline in yields due to severe weather problems in 2013, when frost affected fruit production in general. In the 2015 harvest, there was a noticeable increase in grapefruit yield. Table 13: Yield per citrus variety (kg/plants in production) Year Orange Tangerine Lemon Grapefruit 2011 n/a n/a n/a n/a Source: Uruguay XXI based on DIEA-MGAP In the last 10 years, 45% of fruit production was exported fresh. Additionally, 30% of production was for domestic consumption and the remaining 25% was used by the national industry 34. Despite the low production volumes in recent years, the growing trend in international prices made citrus exports increase by 35% in value between 2006 and 2016, mainly favored by a substantial increase in average export prices. 34 A portion of this industrial production was destined for export. 28

30 Table 14: Citrus Exports and Average Export Price Year FOB USD millions Tons 137, , , , , ,640 93, , ,903 95, ,193 Average Price (USD/ton) Source: Uruguay XXI based on DNA About 36% of exports in 2016 were destined to the European Union, although their participation tends to decline due to the exclusion of Uruguay within the GSP, with the consequent tariffs increase. In contrast, trade negotiations carried out in 2013 enabled exports to the US market, and by 2015 that country became the largest single destination of Uruguayan sales in the sector, with amounts totaling USD 18 million. In 2016, exports to the North American market totaled USD 20 million. The sector considers the opening of this market as highly positive, for which logistics and production processes had to be adjusted in order to comply with the agreed conditions, therefore improving the sector conditions. Even so, the Uruguayan offer is expected to continue improving, particularly advanced with varietal replacement, thus being able to continue diversifying market destinations. 35. Chart 32: Citrus Exports Share by Destination % 46% 40% 36% 24% 24% 20% 15% 10% 0% European Union United States Russia Brazil Saudi Arabia Other Source: Uruguay XXI based on DNA. 35 Source: Opypa - Yearbook

31 Deciduous Fruit The main varietes of deciduous fruit produced in Uruguay are apples, pears, peaches, plums, quince and nectarines, of which the first three are the most important. Chart 33: Land Area and Production of Deciduous Fruit Land area (ha - Right axis) Prod. (thousands of tons (left axis) Source: Uruguay XXI based on DIEA-MGAP. Traditionally most of these fruits are consumed in the domestic market and the surplus is exported, representing almost 6% of the total 2015 production. Table 15: Production by Species (in thousands of tons by agricultural year) Table 16: Yield by Species(kg/plant) Year Apple Pear Peach Others Harvest Apple Pear Peach 2004/ / / / / / / / / / / Source: Uruguay XXI based on DIEA-MGAP. 30

32 During the period, deciduous fruit exports experienced its lowest point in 2013, due to climate issues. This led to a reduction in exports to less than 1,500 tons. From that year on, exported volumes increased at a rate which made it possible to absorb the drop in average export prices. In 2016 this order was reversed and average prices increased, while volumes placed were reduced. In total, more than 2,700 tons were exported, for a value of USD 2.1 million. Chart 34: Deciduous Fruit Exports (USD Million) 8,0 7,0 6,0 5,0 4,0 3,0 2,0 1,0 0,0 4,2 2,1 Source: Uruguay XXI based on data from the National Customs Authority. The institution responsible for receiving applications to be included under the investment promotion regime is the Private Sector Support Unit (UNASEP in Spanish), which, upon collecting all the information required by the Commission for the Implementation of the Investment Law (COMAP) determines the Ministry and agency in charge of the appropriate evaluation, depending on the nature of the project and the corresponding activity 36. In the Agribusiness sector, the total value of investments promoted between 2008 and amounted to approximately USD 4.31 billion. Agribusiness accounted for between 20% and 29% of the total investments promoted by COMAP in recent years Source: Yearbook 2015 OPYPA based on data from UNASEP. 31

33 Chart 35 Investment promoted by COMAP Agribusiness (USD Million) Ene-set Source: Yearbook 2016 OPYPA based on data from UNASEP Sector Indicators for the Agriculture Sector 38 When presenting a project in order to obtain tax benefits under Law No 16,906, companies must select a set of indicators under which the project is to be assessed. Among possible indicators are those which generally apply for all projects and others which are specific to each sector. In particular, for projects in the agricultural sector evaluated by the Ministry of Livestock, Agriculture and Fisheries (MGAP), industry indicators to consider are: Investments in adaptation to climate change 39. Training of rural workers 40. Differentiation of products and processes 41. Out of these three indicators, "Investment in adaptation to climate change" is usually the most used for projects approved in Agribusiness. Another widely used indicator, although not specific of the sector is "Increasing indirect exports." 38 Source: CPA Ferrere and Unasep. 39 It is one of the indicators most used by businesses. It includes investments aiming to adjust production systems based on climatic stimuli, seeking to reduce the impact of climatic variation on economic activity. 40 This indicator seeks to measure the participation of employees in certain technical development and training programs, such as those provided by INEFOP or CETP. 41 Official internationally recognized certifications related to attributes of the product or production process, such as cases of sustainable forest production or organic meat are considered to measure this indicator. 32

34 Uruguay has traditionally boasted a good relationship between the public and private sector for the design and implementation of policies. The agricultural sector is a great example in that regard. General Direction of Agricultural Services -MGAP It is responsible for organizing, developing, and implementing appropriate policies to control the quality of vegetable products and agricultural inputs, as well as facilitating and ordering the commercialization related to grains. See web page. General Direction of Livestock Services - MGAP Operating within the MGAP, this Direction acts as the one responsible for guiding and implementing health policies, ensuring sanitary hygienic condition of food and animal products and supporting investment in the productive sector. See web page. General Direction for Rural Development-MGAP This Department is responsible for designing policies for rural agricultural activities. See web page. General Farming Directorate - (DIGEGRA)-MGAP This agency is responsible for the development of policies seeking to encourage the progress of the farming sector and the improvement of living conditions for the farming population. See web page. National Energy Directorate -MIEM National Milk Institute - INALE This agency is responsible for designing, conducting, coordinating and evaluating energy related policies. See web page. It is responsible for promoting sustainable development of the dairy product chain in Uruguay. It was set up in 2008 by public and private sector stakeholders and advises on the design of dairy policies by articulating ideas and generating information for decision making. See web page. National Meat Institute INAC This Institute is formed by the main public and private experts in the sector. It aims to promote, regulate, coordinate and monitor production, processing, marketing, storage and transport of meat of all kinds, offal, byproducts and meat products. It also aims to coordinate production and export activities - deemed part of the same economic activity - through meat related policies. See web page. 33

35 National Wine Institute INAVI This agency is in charge of executing wine related policy through advising, designing and outlining the economic development of the industrial process since its inception. It monitors the production process by regulating volume and quality, aiming at the industrial development of the sector. Its roles also include the promotion, development and research of the wine industry. See web page. National Seeds Institute INASE The institute seeks to promote seed related activities through the use of high quality products, encouraging seed exports and research and promoting the enactment of provisions for the protection of the industry. It is responsible for protection of cultivars and for carrying the national register of cultivars. It also authorizes private laboratories and manages the import and export of seeds, among other functions. See web page. National Logistics Institute- INALOG This institute provides a space for articulation where sector stakeholders lead the process of promotion, professionalization, innovation and training required to turn Uruguay into a Logistics Hub to boost national development. See web page. CREA FUCREA Uruguayan Federation This federation gathers farmers from different areas (Agricultural and cattle farmers, Livestock farmers and Dairy Farmers) with the aim of promoting the improvement and development of the sector. The CREA method is based on group work among farmers. Through exchange and discussion on specific issues, producers achieve business and family solutions. See web page. Rural Association of Uruguay-ARU The association includes agriculture producers from all over the country and aims to defend and promote the interests of agricultural production and its complementary and related industries. Founded in 1871, it is the oldest institution in the field of agriculture in the country. See web page. Rural Federation The Rural Federation is a federal institution of rural producers associations whose aim is to increase and improve agricultural production in Uruguay, promote soil care and conservation and to encourage the settlement of families in rural areas as well as the balanced distribution of the country s production. See web page. 34

36 National Colonization Institute The institute seeks to promote a rational subdivision of land and its proper exploitation. It also encourages the settlement and welfare of rural workers, thus promoting the increase and improvement of agricultural production. See web page. National Institute for Agriculture Research-INIA The institute seeks to promote sustainable agricultural development through the generation and adaptation of knowledge and technologies. Through the development of a series of technological proposals the institute promotes sustainable intensification, competitiveness and the international insertion of Uruguay. See web page. Pando Technology Hub Institute See web page. The Institute belongs to the School of Chemistry of the University of the Republic. It is dedicated to research and development in the areas of chemistry, biotechnology, environmental and material science, seeking to improve the productive sector through improved techniques and inputs. Chamber of Commerce and Export of Agriproducts This chamber is devoted to the study and promotion of agricultural and livestock production and its marketing, processing and exports. It also seeks to be the liaison between the public sector and the unions that are part of the institution. See web page. Uruguayan Wool Center The Center coordinates livestock production complexes and integrates producers in competitive agro-industrial chains, providing global solutions (commercial, financial, technological, and information related) to improve in collaboration with the cooperatives- the socioeconomic level of producers in the cooperative system. See web page. Uruguayan Wool Secretariat- SUL This institution is financed and directed by wool producers, whose main objectives are the promotion and defense of fiber in all its aspects: Production, commercialization and industrialization. See web page. Rice Cultivators Association - ACA This Association was formed to protect, guide and represent the interests of rice growers and defends and promotes the cultivation of rice and related industries. See web page. 35

37 Uruguayan Civil Association for the Protection of Plant Breeders - Urupov National Commission for Rural Development A private association founded in 1994 with the aim of protecting the rights of plant breeders and ensuring genetic progress. See web page. The National Commission for Rural Development is the main organization of small and medium producers in rural areas, throughout the country. At present, it includes 98 Rural Development Societies, Agrarian Cooperatives and other organizational forms which in turn bring together 15,000 family producers from all over the country. This commission combines union and promotional actions, seeking social and economic development of the rural environment. See web page. Cargill Commercial activities of US based corporation Cargill include the sale, purchase, process and distribution of grains and other agricultural products, cultivation and sale of animal feed, and the sale of ingredients for the pharmaceutical industry. Cargill is present in 66 countries all over the world and in Uruguay it has operated through Crop Uruguay S.A. since Archer Daniels Midland (ADM) Marfrig ADM is a US based corporation engaged in food processing and trade of commodities, operating more than 270 plants worldwide. It has been present in Uruguay since 2004 when it purchased ERRO and operates as wholesaler of grain, seeds and oilseed fruits. The third largest food company in Brazil, present in 22 countries exports to more than 100 and is the world s fourth largest producer of meat. In 2006, Marfrig Group acquired Frigorifico Tacuarembó. Between 2006 and 2007 Marfrig Group also added four other production units in Uruguay, San José Industrial Plant, located southwest of the Country; Salto Industrial Plant, located in the Northwest; Colonia Industrial Plant, on the South Coast and Fray Bentos Industrial Plant, on the western banks of the Uruguay River. 42 It should be noted that both companies in the forest sector and the productive structure of the sector are analyzed in greater detail in the Forestry Sector Report by Uruguay XXI. 36

38 Minerva Meat Packing Plant Minerva is the second largest meat exporter and the greatest exporter of live cattle in Brazil. The company has plants in Brazil, Paraguay and Uruguay, from which it exports to 100 countries. In 2011 Minerva acquired Pul Packing Plant for USD 65 million and Pulsa S.A. In 2014 it also acquired Matadero Carrasco Meat Packing Plant. Lactalis In 2015, the French group Lactalis acquired two milk plants from Indulacsa, which were formerly owned by Mexican group La Esmeralda. The company currently has 200 manufacturing facilities in the world. Since 2011, the company owns 83.3% of Parmalat, the main Italian based worldwide dairy company. UAG It is the largest agricultural company in Uruguay and one of the world's top 10 exporters of meat, rice and wool. The company has been listed on the Stock Exchange of Montevideo (BVM) since 2013, being the largest company ever listed on the BVM. Louis Dreyfus Company This company opened its first office in Uruguay in 2002 and began operations in the agro-industrial sector. It works with 4 platforms: Cereals, Oilseeds, Rice, Fertilizers and Inputs. It is present throughout the world, producing and transporting 77 million tons of commodities, employing people during the high season 43. Estancias del Lago The project is related to the Bulgheroni family, which has other several investments in Argentina and Uruguay. The company focused on the construction of a mega-dairy farm in the department of Durazno, with the largest capacity in the country. The company occupies an area of 37,000 hectares, where different processes including agriculture and intensive farming are integrated in the most modern industrial plant. Thus, traceability of the product is obtained at all times, with certified quality according to international standards. At full capacity the plant will have 13,000 cows in production and render 450,000 liters of milk per day. Moreover, the industrial plant will produce 20,000 tons of milk powder per year Source: 44 Source: estanciasdellago.com 37

39 Camil Alimentos S.A. SAMAN Saman is the main rice company in Uruguay. It manages 50% of the country s rice production and it is the main exporting company in the sector in Latin America. In 2014 the company made exports for USD 165 million 45. In 2007 the company was acquired by Brazilian Camil Alimentos 46. Breeders & Packers Uruguay S.A. This is a state-of-the-art meat packing plant built in the center of the country (Durazno). It has the latest, most secure technology applied to meat processing. The investment was made by English capitals. Company exports exceeded USD 157 million in 2014 and the main destinations of sales were China and the United States. Maltería Oriental SA Maltería Oriental S.A. is a company with 75 years experience in the production and marketing of malt and malted barley. Its manufacturing plant is located 12km north of the port of Montevideo and approximately 200km from its barley plantations. It works with an established network of distributors and producers, which allow the company to cover its annual malting barley requirements. Moreover, it has its own program for varietal development. The malt produced is sent to prestigious breweries in Brazil, Venezuela, Chile and Paraguay. The company belongs to the Transoceanica group, of Chilean capitals. Garmet S.A. It is a company of Argentine investors dedicated to sale of fertilizers, seeds, agrochemicals, herbicides, fungicides, insecticides and related products. The firm is one of the main exporters of grains in the country. Nirea (Frigorífico San Jacinto S.A.): This company is dedicated to the production and export of beef and has operated in the country since Currently, 50% of the shares belong to Argentinean capitals. In Uruguay the company is one of the leading exporters of beef and a producer of Premium lamb 47. AB InBev (Malteria Uruguay S.A) This Belgian-Brazilian company is the world's largest beer brewer, with a global market share close to 25%. It produces brands such as Budweiser, 45 Source: Uruguay XXI based on DNA. 46 Source: 47 Source: 38