PGG continues Uruguay expansion

by Dave

via NZ Herald:
Rural services company PGG Wrightson is continuing to expand in South America.

The NZX-listed company has bought a 51 per cent stake in Romualdo Rodriguez – a Uruguay-based livestock, wool and rural real estate business.

PGG Wrightson managing director Tim Miles said the acquisition further strengthened the company’s strategic position in South America.

The controlling stake in Romualdo Rodriguez added to the firm’s successful seeds businesses, which included Alfalfares in Argentina, and the management business servicing farms owned by NZ Farming Systems Uruguay.

PGG Wrightson holds the fund and farm manager contracts for NZ Farming Systems – which owns 36,300ha of farmland bought for an average price of US$2601 a hectare. Comparable land in New Zealand could cost between US$45,000 and US$50,000 a hectare.