https://youtu.be/oK5_g2c1VU4
“The agricultural sector offers endless opportunities. As agronomists, it is our responsibility to convey to society the complexity and richness that this sector possesses in so many ways,” said Dr. Pablo Caputi during the conference “How to Manage Agribusiness in a Context of Uncertainty.”
The following speakers presented: Juan Ignacio Buffa—Undersecretary of the Ministry of Livestock, Agriculture, and Fisheries—and Dr. Pablo Caputi—Director of the Information and Economic Analysis Division at the National Meat Institute (INAC), academic coordinator of the blended-learning Specialization Diploma in Sustainable Agribusiness, and professor of Agribusiness at Universidad ORT Uruguay.
The event, organized by the Graduate School of Business at Universidad ORT Uruguay, took place on Friday, June 10. It was part ofthe Management and Business Lecture Series.
The event took place as part of the expansion of ORT’s Agribusiness Department, which received the Outstanding Department Award from the School of Business and Social Sciences in 2021. The department is currently expanding its faculty and recently launched two new blended-learning programs: the Blended-Learning Specialization Diploma in Sustainable Agribusiness and the Agribusiness Management Program.
Change the approach
Uruguay's agribusiness sector is set to have a record harvest in 2021 and 2022, even as it faces a growing degree of uncertainty on the international stage.
Against this backdrop, Agricultural Engineer Juan Ignacio Buffa and Dr. Pablo Caputi discussed the challenges facing the sector in the coming years and the decisions that various stakeholders must make in light of this reality.
Caputi stated that the two variables of greatest interest, in terms of well-being, are per capita income and income distribution.
“A society functions well when it has high per capita income that is well distributed. These are the two conditions necessary for a developed society.”
“When comparing Latin American countries such as Brazil, Paraguay, Mexico, Chile, Argentina, and Uruguay, our country has the highest income and the most equitable distribution. That is a source of pride for us and a major part of our raison d’être,” said Caputi.
“That’s the crux of the matter, but the problem is that it’s no longer enough for our children’s generation. Since it’s not enough, the alternative is to emigrate to countries with higher incomes and better income distribution, such as France or Canada,” he added.
The expert cited the example of New Zealand, a country with a high quality of life that distributes income more effectively than Uruguay and has a strong agricultural base. “I believe this country represents hope; it is a beacon showing us that countries like ours can achieve those levels of income, distribution, and quality of life based on agriculture.”
He also emphasized that Uruguay is not a small country, contrary to what is often said, but rather a sparsely populated one. “The countries of the European Union, on average, are about the same size as Uruguay. No one would call them small countries.”
Caputi added that, compared to Europe, Uruguay is“huge.” The thing is, people are constantly comparing it to Argentina and Brazil, which, while larger in terms of land area, face different challenges.
The expert suggested shifting the focus when analyzing the challenges and opportunities facing Uruguay. “We always analyze our country—its strengths and weaknesses—as if we were marketing it abroad, thinking about how to attract foreign investment. Why don’t we apply that same analysis to attract domestic investment? Let’s think about how to work to attract foreign investment, but also to maintain or increase the investment that is already in the agricultural sector.”
The three pillars
Buffa shared his perspective on how to analyze the agricultural business. “I believe that, in the private sector, it is essential to consider the three main pillars: land, capital, and working capital. Companies typically do not break things down in this way; instead, they tend to analyze everything as if it were all the same,” he said.
The expert believes that analyzing these three dimensions creates opportunities to channel investments. “This helps consolidate the business. However, for that to happen, there must be trust and predictability.”
He also noted that, while environmental considerations have always been a part of agribusiness, this is a particularly significant moment in that regard.
“Producers have always implemented environmental conservation measures, but we are now entering a new phase. This aspect will be reflected in specific indicators that will inform decision-making.”
“We’re already seeing that environmental factors are affecting business—and vice versa. That relationship already exists, and producers are working to build on it.”
“I see that in most of the country’s key sectors, such as livestock and rice, we have a strategy in place to continue increasing production. We produce what people around the world want to buy. There is also an untapped opportunity related to selling our expertise. In reality, we do this as consultants, but not as a nation. We haven’t recognized that there is an opportunity there to create value.”
The expert wondered what needs to be done going forward. “What has made the agricultural sector successful are its public goods. We need to make the most of those assets. If we are to have made progress in this area over the next 30 or 40 years, what we must do is ensure that our country’s public goods function as effectively as possible.”
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