DAILY MONDAY, Febru a r y 4 , 2 0 1 3 uruguayspecial 15

Uruguaywww.infocusreports.com Latin America’s rising star and China prepare to celebrate 25 years of excellent bilateral relations

With a strategic location and a “Uruguay has huge potential and growing reputation as the gateway many investment opportunities. to Latin America and the massive Transport, ICT, port services and market of 500 million energy are key sectors for invest- people, Uruguay is attracting record ment partners. We respect interna- foreign direct investment (FDI) as tional law and offer a range of invest- investors race to take advantage of ment incentives. China is our second the country’s excellent infrastructure largest trading partner and is a major and highly-skilled workforce. investor, particularly in automotive Home to 3.5 million people, Uru- manufacturing, so China’s presence guay has recorded average annual is very important and together we GDP growth of 5.3 percent since have achieved substantial growth.” 2003, thanks to a political stability A key player behind this success- that has enabled its export-oriented ful international trade partnership economy to flourish. is the Chamber of Commerce Uru- Rich in natural resources, Uru- , President of Central guay-China which was formed in guay’s economy is focused on the Bank of Uruguay 1986 to strengthen and expand trade production and export of beef, between the two countries across all grains, dairy goods, wool and agri- and the leading foreign purchaser sectors, industries and markets. cultural products. of products like wool, soybean and “There is fluid and permanent President José Mujica Cordano paper pulp. In 2011, Chinese-Uru- contact with China,” said Chamber and Vice-President Danilo Astori guayan trade reached $3.4 billion, President, Eduardo Pietra. “Uru- have positioned Uruguay as a safe 20 times more than in 1988. guay has the reputation of a serious and secure investment destination In June 2012, Chinese Premier country where laws are followed and PHOTO PROVIDED TO CHINA DAILY through modern reforms and pub- Wen Jiabao traveled to Uruguay’s contracts are honored. There is an Uruguay’s Vice-President Danilo Astori greets Chinese leader Xi Jinping during a meeting. lic-private partnerships. capital to meet lead- open market where entry and exit of money and foreign currency is absolutely free and that makes it very that is diversifying with the help of Uruguay At A Glance (Source: Uruguay XXI) Uruguay has huge potential and many attractive.” foreign investors tempted by the investment opportunities. Transport, ICT, port With the global financial crisis lucrative investment openings and Location: South America, bordering Argentina and Brazil services and energy are the main sectors continuing to limit investment pro-business environment. Capital: Montevideo where we are seeking investment partners.” opportunities in the Eurozone and “Uruguay is a wonderful plat- Land Area: 176.251 km² (95 percent of territory has soil suitable for the US, Uruguay is taking its own form for FDI because of its political agriculture and livestock activities.) DANILO ASTORI, URUGUAYAN VICE-PRESIDENT advantage to expand its reach to institutions, rules and enforcement Population (2011): 3.4 million other major international markets of contracts. It is also a great busi- Population growth (2011): 0.4 percent (annual) to remain competitive and make its ness platform from which to access Per-capita GDP (2011): $13,861 presence felt on the world stage. In Latin America and the world,” stated Currency: Uruguayan Peso ($) A key strategic partner is the ers and strengthen ties. Hailing his April 2012, Uruguay’s credit rating Central Bank of Uruguay President Literacy: 98 percent People’s Republic of China and in visit as a “milestone”, Vice-President was raised to investment grade sta- Mario Bergara. “We offer stability Life Expectancy: 77 years ‘February‘ 2013 the pair will celebrate Astori said he wants China to par- tus BBB- by Standard & Poor’s. and enjoy an excellent reputation for Government: Democratic republic with Presidential system the 25th anniversary of bilateral rela- ticipate in major infrastructure proj- The Central Bank of Uruguay transparency.” Time Zone: GMT -03.00 tions. China is Uruguay’s second ects like a new deepwater port and has helped the government create Official Language: Spanish largest trade partner after Brazil railway system. a stable and transparent economy InFocus provided the story Digital revolution connects continents

leading promoter of social and eco- 2003 and 2011 to $4.2 billion and As a competitve and business-friendly ICT hub, nomic development through the the country is now a leading regional provision of ICT networks that use exporter of computer software, with Uruguay is the natural gateway to Latin America Chinese-made fiber-optic technol- its programs in smartphone and tab- ogy, Antel expected its turnover to let technology used by consumers in surge at least 10 percent year-on- China and other countries. The Uruguayan and Chinese on South America’s Atlantic coast) tives will participate in four major year in 2012. Antel has invested huge sums economies complement each other and next-generation ICT systems trade fairs in China this year to pro- Uruguay’s ICT systems are the in the latest fiber-optic technology perfectly, with the former a lead- make it a highly competitive services mote the “Uruguay Natural” brand most advanced in Latin America. and connected more than 240,000 ing producer of food and provider platform. that highlights its wonderful natural It has the highest rate of Internet homes to that network since Octo- of world-class services required by Uruguay XXI, the country’s resources and quality of life. users — nearly 60 percent — on the ber 2010. the latter’s giant industrial and com- investment and export promotion “Uruguay is a great gateway to continent and high rates of mobile Antel’s popular “Move Forward mercial base and fast-growing con- agency, is spearheading efforts to Latin America and can be a very phone ownership and computer Together” slogan emphasizes its interesting logistics hub for Chinese penetration in homes. commitment to bring the best companies that want to operate Central Bank of Uruguay Presi- technology to as many individuals, Uruguay is the perfect base for Chinese locally and sell their goods here and Carolina Cosse, President of Antel dent Mario Bergara believes heavy schools and businesses as possible. companies wanting to do business in elsewhere on the continent,” said investment in modern ICT systems As Uruguay looks to become the Latin America” Uruguay XXI Executive Director is one of the key factors for the con- region’s ICT hub, the company is Roberto Villamil. Uruguay’s modern transport tinued success of the banking and eager to team up with Chinese busi- ROBERTO VILLAMIL, EXECUTIVE DIRECTOR of URUGUAY XXI “The country leads the way in infrastructure is supported by effi- financial services industry and has nesses to share market and techno- many regional rankings. It offers cient state-of-the-art ICT networks given the national financial system a logical know-how. legal certainty, institutional secu- that provide businesses with fast and platform on which to flourish. “Uruguay is in a cutting-edge sumer society. Uruguay also offers internationalize the economy by rity, low levels of corruption, a well- reliable fixed line, mobile and Inter- “Our telecommunications infra- position in the field of telecommuni- duty-free access to the massive strengthening Uruguay’s image trained workforce and good quality net access that is the backbone of structure is very good, with digi- cations in Latin America,” said Antel Brazilian and Argentinian markets abroad and promoting its many of life, as well as a strategic logistics commerce in the 21st century. tal communications networks and President Carolina Cosse. We have and benefits from a free trade agree- enviable assets to investors. location with economic transpar- The forward-thinking and pub- good competition,” he said. a Tier III data center — an inter- ment‘‘ with Mexico, while its modern Formed in 1996, the agency ency and tax benefits for investors. licly owned telecommunications Central Bank data shows the nationally recognized standard — transport and port infrastructures, attends many leading international “It is the perfect base for Chinese provider, Antel offers fast, efficient, export of services, including busi- which we are currently expanding.” free trade air- and seaport- zones trade shows and events around the companies wanting to do business in reliable and competitively priced ness, computer and information (Montevideo is the only free port world and its teams of representa- Latin America.” telecommunications services. The services, jumped six-fold between InFocus provided the story

Central Bank of Uruguay CHINA DAILY MONDAY, Febru a r y 4 , 2 0 1 3 uruguayspecial 16 Solid financial system Uruguay’s modern and transparent banking sector is growing at a robust rate

With a focus on corporate banking stated Juan Carlos Chomali, Banco and project finance, Banco Santand- Santander Uruguay general manag- er Uruguay is the country’s largest er. “There are important legal guar- private bank and a recognized lead- antees and macroeconomic stability er in the republic’s well-regulated, in Uruguay – two vital factors for transparent and fast-growing bank- doing business in any country. ing and financial services sector. “The biggest part of our opera- Boasting a significant share of tion remains corporate banking the loans and deposit markets, the which is responsible for 51 percent forward-thinking bank is part of the of our business, but our overall aim world-renowned Grupo Santander is to achieve equality between our and offers businesses and individu- corporate banking and retail bank- als an extensive range of financial ing operations. The critical mass in services through its diverse portfolio corporate banking, the know-how, www.nirea.com.uy of financial products. clients and contacts of the group Frigorífico San Jacinto is a leading exporter of gourmet beef and lamb brands El Rancho and Nirea For commercial customers, these Juan Carlos Chomali worldwide are all key factors. include varying sizes of lines of General Manager credit for large, small and medium- of Banco Santander Uruguay Liquid financial system Meat sector has a taste of success sized enterprises, cash management “This is a banking sector with services like payroll payments, trade commercial opportunities that arise experience of crisis and this is very services such as import and export from the country’s socioeconomic valuable,” Chomali said in reference documentation and assistance. success. The bank is at the forefront to the economic crisis that engulfed Uruguay’s premium-quality beef and lamb are While for private customers, the of private sector efforts to attract bil- the country around a decade ago bank offers a range of current and lions of dollars of FDI to Uruguay but from which it has bounced back among world’s best produce say cattle farmers savings accounts, credit cards, loans, and particularly investment from strongly. Now, Uruguay has a healthy mortgages and financial products countries like China that have played credit rating and savings , and a liq- targeted at university students. such a leading role in the socioeco- uid financial system that is capable Blessed with a climate and ter- personalized contact with produc- In addition, the award-winning nomic development of nations’ of putting up with any future crisis. rain perfect for cattle grazing and ers, exchanging key information bank offers a range of specialist fis- economies around the world. “Banco Santander has a business the production of fine meat, Uru- for the continuous improvement in model based on subsidiaries that are guay has three times as many cows the quality of the meat it processes. autonomous in terms of capital and as people and its long-established With an outstanding reputation A Chinese company that wants to develop a liquidity, which leaves the decisions beef industry nurtures the country’s among local and foreign consum- project in Uruguay simply needs to call and to a steering committee and local most important export product. ers, San Jacinto has grown into they will receive a great reception.” board. This business model allows With meat an important part of one of Uruguay’s most successful for greater diversity and flexibility the national identity, it is not sur- exporters of bovine meat and this JUAN CARLOS CHOMALI, in their funding sources, capital and prising that the country holds the success has been repeated in the BANCO SANTANDER URUGUAY GENERAL MANAGER profits.” Guinness world record for the larg- lamb sector through the production According to the senior executive, est barbecue ever made, from 13 of premium lamb cuts. Latin America now accounts for half tons of steel and 12,000 kilos of beef. “Nirea boasts the most modern cal products for farmers and agri- In a further sign of its ambition of the global group’s worldwide prof- Uruguay’s meat industry boasts and technologically advanced lamb cultural enterprises. These include to become the number one bank its. The past year has been very good a highly-efficient and reassuring production plant in South Amer- ‘pre-approved‘ credit and financial in the country and repeat its suc- to us; the business margin increased tracking system and traceabil- Luis Fratti, Chairman of INAC ica,” said Vice-President Gastón plans for the purchase of machinery cess elsewhere in Latin America and by 40 percent compared to the previ- ity mechanisms that allow farmers Scayola. and vehicles such as tractors, and Europe, Banco Santander Uruguay ous year,” Chomali added. and handlers to track individual In 1996, the company launched generous credit packages that are is also targeting high-income earn- Focusing on the sort of welcome animals throughout the bovine’s for the additional taste and quality,” its Heavy Lamb Program for lambs timed to coincide with the farming ers. The bank offers a broad range of Chinese businesses can expect in lifetime. Animals are reared natu- said Luis Fratti, INAC chairman. whose carcass weight 13-20 kilo- seasons and harvests. tailor-made investments and solid Uruguay, he said: “A Chinese com- rally and with no growth hormones Chinese Premier Wen Jiabao was grams, resulting in an exquisite fla- Given its impressive reputation financial products under its “Van pany that wants to develop a project as this is outlawed, and the coun- served a fine cut of Uruguayan beef vor and excellent size for its eye of and financial performance in Uru- Gogh” preferred banking services in Uruguay simply needs to call and try’s agro-industrial chain benefits during his recent visit to Montevi- loin and other cuts. guay over the past few years, Banco package. they will receive a great reception.” from an institutional framework deo and INAC also exhibited at a “The heavy lamb market is very Santander Uruguay is ideally-posi- “Banco Santander is the bank that that ensures the health of animals, major trade expo in Shanghai ear- important to us,” Scayola said. “We tioned to take advantage of the many best understands Latin America,” InFocus provided the story meat safety and commercial quality lier this year where thousands of have always been pioneers and are required by buyers. delegates enjoyed its wide range of now one of the main producers in In 2011, more than 50,000 farm- meat. Uruguayan beef exports to South America, thanks to our dedi- ers and around 40,000 livestock China are currently worth around cation to the meat and investment producers generated more than $112 million per year. in technology. 600,000 tons of meat, of which As the host of the 2016 World “Our product goes to top res- around 450,000 tons were exported Meat Congress, Uruguay is looking taurants and the gourmet sector and produced foreign exchange rev- forward to showcasing its premium in the world’s most discerning enues of over $1.6 billion. meat products to the most impor- countries: US, Brazil, Russia, China China is a leading importer of tant figures in the global industry, and nations in the EU. Ne w Zea- Uruguayan beef and livestock-relat- ed products such as wool, leather Our premium quality product goes to top and fur. Other key markets include Russia, the EU and the vast Merco- restaurants and the gourmet sector in the sur market. world’s most discerning countries: US, Brazil, “Uruguay exports 70 percent of Russia, China and nations in the EU.” its meat, 75 percent of its milk, 95 percent of its rice, 70 percent of its GASTÓN SCAYOLA, wheat, 97 percent of its soybeans FRIGORÍFICO SAN JACINTO – NIREA S.A. VICE-PRESIDENT and 50 percent of its citrus fruit,” said Tabare Aguerre, Minister of Livestock, Agriculture and Fisher- ies. “The diversity of our livestock ‘especially‘ as the 2014 edition will land has 300,000 tons of quota in and agricultural products makes us be held in Beijing. Europe, Australia has 300,000 tons competitive, while our successful of quota in the US. We are the third animal identification system has Premium producer because we do not consume lamb helped the meat industry develop at Dedicated to the production of meat domestically and we export a rapid rate. This traceability system world-class beef, lamb and other it. Nirea’s extra taste and quality is is a powerful tool for disease control meats, Frigorífico San Jacinto-Nirea already recognized in Brazil and in and the technology also enables us S.A is a leading figure in Uruguay’s Europe where we have the largest to control the quality.” meat industry and the company’s quota for Uruguayan lamb.” Created in 1984, the National Nirea and El Rancho brands are sold San Jacinto is now aiming to rein- Meat Institute advises the govern- widely in many international mar- force its position as one of Uruguay’s ment on all meat industry matters kets. The forward-thinking com- top five meat producers and its larg- and is responsible for promoting, pany supplies leading restaurant est lamb producer, while maintain- regulating, coordinating and moni- chains elsewhere in Latin America ing strict quality control measures toring the production, processing, with its award-winning range of fine and commitment to farmers, cus- marketing, storage and transporta- meats that are 100 percent sourced tomers, industry officials and the tion of meat. from local cattle ranches. environment. “China is the market “We are focusing on producing Through investment in mod- with the greatest possibilities for excellent value-added products and ern technology and an exclusive growth,” Scayola said. are targeting niche markets where network of livestock buyers, San consumers are willing to pay extra Jacinto benefits from direct and InFocus provided the story

Frigorífico San Jacinto – Nirea S.A. is located in Uruguay, a country with natural pastures and crystalline water, where growth hormones are prohibited by national law. With a low population density (20 people per km2) there is enough land to raise cattle grazing in open pastures (1 animal per hectare). Our Company is one of the most important bovine meat exporters and leader in the production of Premium Lamb cuts.

www.nirea.com CHINA DAILY MONDAY, Febru a r y 4 , 2 0 1 3 uruguayspecial 17

PHOTO PROVIDED TO CHINA DAILY PHOTO PROVIDED TO CHINA DAILY Alejandro Bulgheroni, President and Owner of Agroland S.A. Garzón is Agroland’s best-selling brand of premium quality wine. Wine and olive oil create recipe for success

and Sauvignon Blanc, Pinot Grigio, awards, which meant that for the team of professionals, so we can offer Ambitious Agroland sets its sights on Chinese Viognier and Petit Manseng, for fifth consecutive year our extra vir- healthy and natural products that the whites. All the grape varieties gin oil received more awards on an reach a high degree of satisfaction in consumers after outstanding first decade should do well in this environment. international level than any other our consumers.” The idea is to make a distinctive Tan- Uruguayan company.” Bulgheroni believes local agro- nat, which could become what the industrial developments should be With roots stretching back to the acre, the project features hundreds organic fertilizers, biodiesel, wind Argentinian Malbec has become Tempting consumers complemented by real estate and turn of the millennium when the first of small vineyards mixed with small energy and biomass,” Bulgheroni over the last decade.” According to Agroland’s com- tourism initiatives. seeds were sown in Punta del Este’s woods, big rocks and natural palms. added. “We are able to place on the Agroland also stands proudly at mercial director, Nicolás Kovalenko, “Our products are refined, high- fertile soil, Agroland S.A. has blos- “Agroland is the materialization of market excellent high quality prod- the forefront of Uruguay’s olive oil China is an ideal market for the com- end, gourmet, and incorporate many somed into an agricultural paradise a dream that my wife, Bettina, and I ucts. Our main contribution is that industry. The pioneering firm has pany’s high-end products, although of the values you would find in the where nature and farming expertise shared,” explained President Bulgh- we took the risk of investing in new won many top international awards he acknowledges it will be some time countryside of Uruguay,” he stated. combine to produce fine wine, olive eroni. “Back in 1999, we discovered productions in a new location. This and was recently named the world’s before the producer can conquer the “In essence, our products and the oil and nuts. Garzón, a really old part of Punta del success has encouraged investors sixth best extra virgin oil production lucrative Chinese market. landscape become one.” Undoubtedly one of Uruguay’s Este which became the ‘small Tus- to take risks as well ‘on the basis of company by an industry body. “Even the lowest grade of China’s Given its strong focus on environ- most prolific success stories, Agro- cany in Uruguay’ for us. something sure’ and cultivated lands Uruguay will soon become a premium sector is much bigger than mental responsibility, Agroland is land has transformed mile after mile “We have a combination of the are expanding across the region and member of the International Olive we can access in the US or Brazil, also branching out into non-tradi- of rolling countryside into a self- flavors of Italian ancestry with the the country.” Oil Council (IOOC) in a move that so that would be our goal and our tional areas through investment in sufficient wine and food producing local air, in a really exquisite place will guarantee the quality of olive oil region that has attracted the attention and we produce food for the most Quality not quantity through manufacturing and certi- of upscale consumers in countries demanding tastes. With a focus on the creation of fication procedures that will be in For the fifth consecutive year, our extra around the world, including China. “The area’s geography combines premium brands, Agroland is a lead- accordance with international indus- virgin oil has received more awards on an Often referred to as the “Tuscany hills, brooks and streams which fall ing producer of high quality wines try standards. international level than any other Uruguayan of Uruguay” by Agroland’s vision- over the flatland and stretch out destined for international markets. “At present, Agroland has a total of ary creator and president, Alejandro towards the sea. This beautiful scen- The company’s “quality, not quan- 550 hectares with olive trees planted, company.” Bulgheroni, the project’s 4,000 hect- ery inspired the growth of Agroland tity” approach is centered on the spe- of which 450 hectares involve the ALEJANDRO BULGHERONI, AGROLAND S.A. PRESIDENT ares feature vineyards, olive groves, and offers an extraordinary environ- cific kind of soil that gives the wines production of extra virgin oil and almond plantations and vast herds of ment for our plantations which com- such a rich and unique flavour. are located in our exclusive ‘bou- livestock such as beef cattle. plement the area’s natural beauty.” The group’s first vineyard was tique’ factory Colinas de Garzón,” In early 2013, a next-generation According to the dynamic entre- planted in 2007 and by the end of Bulgheroni revealed. The remain- winery and several stylish restaurants preneur, Agroland has been able to 2012 the firm had 180 hectares. ing 100 hectares are for table olives, next logical destination,” Kovalen- renewables energies and has devel- Over the next two years this total which is a project that we started ‘ko stated.‘ “China is bigger than the oped two wind farms to help power will gradually increase to 240 hect- recently – complementing a family of other niche markets of the world. I its extensive operations and, possibly, I have carried out studies of gourmet shops in ares. “I would describe our wines as high quality products. We have 3,000 have done studies of gourmet shops sell any excess energy. In 2013, Agro- Shanghai and it’s amazing how much demand a blend of Tuscany, Burgundy and additional hectares of olive trees in Shanghai and it’s amazing how land will partly open the industrial California,” Bulgheroni commented. through our associated company much demand there is for premium area of its winery in the Garzón hills there is for premium products such as ours.” “Our goal is to make premium Nuevo Manantial; 1,000 hectares of products like ours.” and expand the installed capacity of Nicolás Kovalenko, Agroland SA. Commercial Director wines with strong identity, personal- which are already producing olives. Agroland is not just focused on the Colinas de Garzón oil mill and ity, and a sense of place. Our mes- “We have a unique high quality developing Uruguay’s precious natu- launch new production, packaging sage is Uruguay can make premi- product and are developing high- ral resources as it looks to add-value and bottling areas. um wines and we will see that it is ly demanding trade channels and and make high-quality fine foods The company will soon debut will open, along with a visitor center evolve so quickly thanks to a series acknowledged worldwide.” our produce is reaching large-scale and forestry, with the development another small plant for the process- that will showcase the exciting and of ambitious agro-industrial projects When it came to selecting varieties markets like the US, China, Russia of the country’s human resources ing of dry fruit, mainly almonds. innovative project to thousands of in the Latin American nation, the US of wine, Agroland decided to focus and Brazil. We are also developing regarded vital ingredients in its ongo- ‘tourists‘ who flock to the area each and several countries in Europe. on Tannat for the reds and Albariño an off-season market for the most ing success. InFocus provided the story year to enjoy its warm climate, spec- “These projects use state-of-the- for the whites as “the Tannat really demanding European customers, “Agroland is going forward with tacular views and wonderful cuisine. art technology and our values are does well in this climate while the This report was produced in which, thanks to our high quality front-line projects to promote indus- partnership with InFocus Reports. Blessed with a well-drained soil based on taking care of the environ- Albariño is also developing well.” extra virgin oil, would have new oil trial development, creating jobs for and cool Atlantic Ocean breeze, ment, including the development of “We also thought other grapes available throughout the year, hav- qualified personnel and improving Agroland boasts an excellent climate vineyards, olive plantations, cultiva- could do well here, for instance, ing been produced only six months their training,” Bulgheroni explained. for wine growing. With the average tion of berries, fine fruit and dried Merlot, Cabernet Franc, Pinot Noir, earlier. In 2012, Colinas de Garzón “Our aim is to continue investing, www.infocusreports.com size of each vineyard less than one fruit, forestry, dairies, cattle-raising, Marselan and Caladoc for reds, won more than 20 international innovating and fostering the best