Driving Sustainability and Innovation in Uruguay’s Agriculture

Photo credits: Uruguay XXI

In a world where food security is an increasing challenge, Latin America is the only continent with a net food export surplus, representing a strategic advantage. However, the continent also has the highest cost for a healthy diet. In this context, Uruguay stands out with access to over 115 markets but faces high tariffs in several key destinations, posing a challenge to its competitiveness in international trade. Nevertheless, the country has opportunities to differentiate its products through innovation, added value, and a strong commitment to sustainability.

The second edition of Agro en Punta, held from 5 to 7 February 2025, brought together key players from Uruguay’s agricultural sector to discuss challenges and opportunities in a constantly evolving market, where demand for sustainable and traceable products is on the rise.

Sustainability and Trade: The Necessary Balance

Fernando Mattos, Minister of Livestock, Agriculture, and Fisheries, emphasised that as an agricultural and raw material-exporting country, Uruguay’s future depends on preserving natural resources. He also highlighted that environmental factors have become increasingly significant trade barriers for accessing international markets. In this regard, he pointed out that the European Union’s new Deforestation Regulation (EUDR) poses a challenge for many countries but assured that Uruguay is already prepared to comply with its requirements.

Meanwhile, Uruguayan President Luis Lacalle Pou stated, “The world will eat more and conserve more.” He underscored the importance of science-based and sustainable production, noting that Uruguay has the opportunity to showcase its potential and add value to its agricultural products.

Innovation and Added Value: The Path to Agro 2.0

Luiz Ros (Inter-American Development Bank – IDB) stressed that this is the era of Agro 2.0, where innovation, inclusion, and sustainability must be central to transformation. He asserted that Uruguay can not only innovate but also inspire other countries. A clear example is Uruguay’s financial innovation through the issuance of sovereign bonds linked to climate indicators, serving as a model for other nations.

Along the same lines, Renata Miranda (EMBRAPA) encouraged sustainable innovation for productive intensification and emphasised the growing necessity to export products with added value. “The more data and information we have, the greater the transparency and credibility,” she remarked, reinforcing the need to develop strategies that enhance the region’s competitiveness.

Photo credits: Uruguay XXI

From the meat industry, Elizabeth Misa (Las Moras) pointed out shifting consumer expectations: “Customers no longer just want to see slaughterhouses; they want to understand how we produce and where the food comes from.” This shift requires Uruguay to strengthen its identity and communication in global markets. Meanwhile, Sérgio De Zen (Minerva) highlighted Uruguay as a country that adds value and ensures reliable information, noting that there is a strong market for Uruguayan beef.

On a related note, Marcelo Secco explained that Marfrig is working on building a clear brand identity around meat origin. To enhance value, he stressed the importance of collaboration with the food service sector and introduced a new project in Uruguay focused on product differentiation through value-added livestock production.

Sustainability and Consumer Trust

A recurring theme at the event was the growing consumer demand for sustainable and transparent products. Ana Laura Varsi (LSQA) presented a study on greenwashing, revealing that 50% of the sustainability claims analysed were vague or misleading. Third-party verification, she noted, is crucial to consolidating trust in global markets.

Similarly, Walter Baethgen (INIA) warned about the risks and opportunities of carbon footprint labelling. “Let’s avoid carbon myopia and consider other environmental indicators,” he advised, stressing the importance of robust science and solid data to support sustainability strategies.

Uruguay’s Role in the EU-Mercosur Agreement

Vanessa Mock (European Commission) highlighted the trend towards a less multilateral and more trade-bloc-structured world, mentioning that the EU-Mercosur agreement is expected to be signed in 2025. Meanwhile, Guillermo Valles Galmes (Uruguayan Ministry of Foreign Affairs) underscored the need to finalise the agreement to avoid a deterioration in the region’s international credibility. Julio Lestido (Uruguayan Chamber of Commerce and Services) pointed out that the EU is not only Uruguay’s third-largest market but also its main foreign investor.

The agreement is expected to reduce tariffs for Uruguayan products entering the European market, making them more competitive against products from countries that already benefit from preferential trade terms.

Photo credits: Agencia Atípica

The Challenge of Communicating Agriculture More Effectively

Successful livestock businesses talk about the environment and have a story to tell. “Our livestock sector is part of the solution, and we need to communicate this,” stated Álvaro Pereira Ramela (INAC). Country of origin is one of the main reasons consumers choose a product.

One of the most significant messages of the event came from the CREA coordinators—Cristian Feldkamp, Jorge Olmedo, Gonzalo Zorrilla de San Martín, and Manlio Alberto Roca Zamora—who emphasised that the agricultural sector must improve its communication with society. They acknowledged the need to step out of their usual circles and engage with the broader public. Misconceptions about agriculture persist, making it urgent to develop a clear narrative about the sector’s role in global food production and resource conservation. Additionally, they noted that producers need tools and knowledge to fully understand sustainability across its three pillars.

Conclusion

Agro en Punta 2025 made it clear that Uruguay has a great opportunity to establish itself as a leader in sustainable and high-value-added production. The key will be to balance innovation, sustainability, and effective communication to meet the growing demands of the global market.

However, reducing high tariffs and strengthening trade agreements will be crucial to enhancing the competitiveness of Uruguayan products.

Uruguayan agriculture must embrace the challenge of turning obstacles into opportunities. How can we continue advancing in this direction?

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