"Uruguay can lead in large-scale sustainable food production"

Joaquín Labella: Managing Farmland for Foreign Investors in Uruguay

Joaquín Labella was born in Mercedes, Soriano, and is a certified accountant with a background in finance. At the age of 25, he moved to London, England, and today lives in Lisbon, although he frequently travels to Uruguay. “I spend half my time in Uruguay because of my company, but also because my entire family and close friends are still in Mercedes. I remain deeply rooted there,” he told VERDE.

Together with Francisco Roque de Pino, of Swiss origin, he founded The Land Group 10 years ago — a company specialising in asset management focused on livestock and agricultural production. “We manage farmland on behalf of institutional, individual, or family investors from abroad — from North America, Europe, and Brazil. We are essentially their execution arm. We don’t manage funds; instead, we manage assets on their behalf,” he explained.

Over the years, the company has administered, bought, sold, or participated in transactions covering 140,000 hectares. It currently manages 20,000 hectares in Uruguay across seven farms, and another 20,000 hectares in Paraguay. Their short-term goal is to expand operations into Argentina, Brazil, and Portugal.

European Investment in Uruguay

“I believe European investors have a particular preference for Uruguay, and that will continue,” Labella observed. He maintains that “foreign investors remain interested in the country,” viewing it as “institutionally and legally stable.” He added: “In my daily work, I wake up and go to sleep selling Uruguay — and I love that — because I truly believe in what I’m promoting.”

Labella believes that any serious investor will always allocate part of their portfolio to agriculture — a sector that is growing steadily and will become increasingly relevant in 10 to 15 years. “They’re looking for assets resilient to climate change and global crises, which are becoming more frequent — and for stable long-term returns. It’s about owning something that, no matter what happens, remains yours. And that’s why legal stability in Uruguay is so important — what you buy today, your grandchildren will still own. That certainty matters.”

The Land Group

“We’ve earned a place in this sector by being transparent and by providing trust and security to investors who are 12,000 to 15,000 kilometres away from Uruguay — many of whom don’t speak the language and are in a completely different time zone,” Labella explained. “We came to eliminate the problem of information asymmetry between local producers or agents and international investors.”

“We offer our clients full asset management — from identifying the opportunity and purchasing the land, to production, ongoing management throughout the investment’s lifespan, and eventual sale. We manage 100% of the process, obviously working alongside third-party partners such as accountants, auditors, and legal and tax advisers.”

He noted that his business partner speaks five languages, “which allows us to sit at the table with high-profile investors globally.” The company currently manages farms in Soriano, Río Negro, Paysandú, two in Salto, and one in Tacuarembó. “We recently sold one in Rivera, and within the next six to 12 months we’ll be expanding the portfolio further,” he added. These seven farms are owned by three different client groups.

“Where the asset allows it, we run full-cycle livestock production, which is very important to us as it helps improve genetics and avoids the risk of sourcing replacements. Otherwise, we focus on rearing. Our company directly manages 100% of the livestock operations. Until recently, all cropping was leased out, but now we cultivate 50% of the farmland ourselves.”

Regenerative Production

The Land Group champions regenerative agriculture and livestock farming on the properties it manages. “It’s fair to say many companies now promote this — some are genuinely committed, while others use the label simply because it sounds good,” Labella said. In their case, it was driven by conversations with clients. “We believe there’s true added value. It’s no longer just about producing land at any cost — it’s about doing it sustainably and regeneratively.”

“Our core asset is the soil — that’s 90% of what we manage — and we aim to preserve and enhance its value over the long term. It’s not just about short-term gains; it’s about building value over time.”

Regenerative agriculture and livestock are “central to our operations,” Labella emphasised, expressing a strong aversion to monoculture. “Many of the farms we acquired had limited crop rotation and no pastures for over 20 years.”

“We believe it’s possible to work with nature, not against it. Annual profits often depend on commodity prices or weather in a given year. But long-term value comes from endogenous factors generated within the system — not just from price fluctuations based on supply and demand.”

He pointed out that food production returns are “quite low” compared to, for instance, a 30-year US bond yielding 5%. “If you don’t view this as a long-term asset with land appreciation potential, it becomes unviable.”

On implementing regenerative practices, Labella explained that the process happens on two fronts: internally with the team, and externally with tenants where applicable. “We haven’t done this overnight — it’s been progressive. Since 2018, we’ve managed seven farms in Uruguay, gradually bringing them into direct operation with regenerative practices. Six of them are now fully under our technical production policy. The last one will follow next year. It’s not something you achieve in a day — it takes time and there’s no single truth.”

He added that regenerative practices “spark debate — it’s not a binary concept where you’re either 100% regenerative or not. It’s a journey, and each step counts.” For example, applying fewer chemicals, improving crop rotation, or including pastures where there were none before already represents progress.

“It’s not like organic farming, where you’re either in or out. Here, it’s incremental and can be adapted over time.”

Labella also mentioned talks with certification bodies but clarified, “We’re doing this because we believe it will increase the long-term value of our farms, not just for the sake of a label. There’s no price premium for our products due to these practices. Certification has high annual fixed costs and must be renewed. We’d rather reinvest in infrastructure — fencing, water systems, pastures, livestock — than spend it on a badge.”

Consumer Demand

Living in Europe and being close to the end consumer, Labella confirmed there’s “a growing awareness and concern about consuming more sustainable food.” Although there's no premium today, “we believe we’ll get there. This is a long-term path, and we expect financial returns as well.”

He added that European consumers “are becoming increasingly aware of what and how they consume,” and Uruguay “can position itself as one of the world’s leading producers of sustainable food at scale.”

“I have no doubt that someone dining in a Swiss or Austrian restaurant will soon want to trace their food back to its origin — where and how it was produced. That traceability will offer significant pricing advantages in the future.”

He noted this added value can be generated by the producer through better practices. “You can improve efficiency and get more yield per hectare — and that means more money in your pocket. But in terms of the classic PxQ (price x quantity) equation, we believe the gain today is more from quantity than from price.”

“What I can say with certainty is that our farms are improving every year — productivity is stabilising. With climate change and volatile prices, we believe we are building resilience, which provides more stability and greater long-term productivity,” he concluded.

Irrigation

Labella confirmed that irrigation potential is a key factor in investment decisions. He stressed that Uruguay “has enormous potential” in this area, especially compared to Europe, where irrigation is often restricted. “Uruguay has abundant water resources and the impact on production is enormous — even beyond the strong tax incentives, which are very good,” he noted.

“We’re already investing in irrigation in two farms and evaluating it for two others. We see it as a way to boost sustainability and production stability.”

Uruguayan Agriculture

Labella believes Uruguay’s agricultural sector is “very capable, with highly skilled people eager to innovate.” He said that over time, the best will endure. “Companies that manage risk well, deliver, build trust, and invest smartly will remain and can contribute significantly to Uruguay.”

He concluded: “Football and agriculture are Uruguay’s best ambassadors.”

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