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Brown & Co launch premier 44,000 Ha Freehold and 46,000 head of cattle grass fed beef operation in Gran Chaco Region, Paraguay

Brown & Co launch premier 44,000 Ha Freehold and 46,000 head of cattle grass fed beef operation in Gran Chaco Region, Paraguay

Fri 01 Sep 2023

Insights



With continued growth and development since its initial acquisition in 2008, the business has developed into one of the premier beef operations of its kind in Paraguay. Carrying capacity has continually improved and current stock numbers (both on the main holding and leased land) are currently c. 46,000 head of predominantly high-quality Brangus cattle.

Charles Whitaker, Managing Partner of Brown&Co, said: “The scale this opportunity presents is rare in the current climate, particularly in an operating environment where freehold land ownership is possible – combined with a low cost, low carbon operation that is immune to grain price volatility.

“Our view is this is a unique opportunity in a rapidly developing part of the world which both food security mandates, beef supply chain and institutional investors are finding increasingly compelling.”

In addition to 44,000 ha of freehold land – there is a further 16,000 ha of leasehold land together with established and profitable share farming operations. The business has a successful track record of establishing, operating and managing some 46,000 head of cattle across a fast-growing pasture and cell grazing platform with adoption of leading innovation, technology and genetics at the core of the operation.

Adam Oliver, Partner, said: “Recent elections have seen a new 44-year-old, former IMF economist elected as President of Paraguay.

“The investment environment for those seeking long term, scaleable investments is positive and stable and consistent ongoing investment is improving the logistics and access to market outlook.

“A good example of this is the Bioceanic highway currently under construction which will link the Pacific and Atlantic coasts and reduce logistics costs, further improving the competitiveness of the region.

“Over the medium and longer term we expect this to open up the Gran Chaco to significant development in the same way that we have seen other parts of the world that have seen investments in infrastructure and logistics.”

Map of the Corredor Bioceánico Map of the Corredor Bioceánico

ESG, Carbon and Biodiversity
With approximately 18,500 ha of forest reserve (included in the 44,000 ha freehold land), the business is well positioned to maintain and build on strong ESG practices including animal welfare, low carbon impact, high efficiency water capture and use, active wildlife and biodiversity nature conservation programmes and potential for carbon sequestration alongside efficient cell grazing practices.

Water & Infrastructure
A comprehensive water and infrastructure investment programme has been implemented together with an innovative, digital, patent-pending water monitoring and control system. 80% of the water required by the holding is derived from dam collected rainwater in the summer rainy season (November to April) and stored in large gravity collection dams before being solar pumped up to Australian tanks. Each dam and tank is supported by a bore hole and solar pump for additional capacity in the dry season.

Charles Whitaker, Managing Partner, Brown&Co said: “I believe any party seeking an already at-scale low cost, low carbon grass fed beef opportunity should be looking at this.

“The quality of the management team together with investments made into infrastructure, water and genetics means this is an opportunity that is ready for an investor seeking scale and a growth platform. We are expecting strong interest from institutional investors demanding agricultural assets in the greater than US$90m market segment. We believe $1500 per hectare and 160kg beef production per hectare per annum to be globally competitive and attractive to those in large scale beef supply chains.”

Cattle on field
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