- Products & Services
- Knowledge Base
MUNICH, GERMANY, September 06, 2019 /24-7PressRelease/ -- In 2012, the Agri Terra Group caused a sensation in the German financial community when it offered interested parties the option to invest in cattle herds in Paraguay for the first time. By the time the Retail Investor Protection Act was amended in 2015, hundreds of clients had tried to make direct investments in cattle, with overwhelming success. However, after the offer had become subject to prospecting regulations in Germany, Agri Terra took the investment off the market in view of the high regulatory costs, much to the chagrin of German investors.
"Everyone earned money from cattle with us; not a single customer suffered a loss," reported Carsten Pfau, managing director of the company – who has also been a cattle breeder in Paraguay since 1995.
The Agri Terra Group has a lot of experience in cattle breeding. Then business has been run for over two decades in South America and boasts one of the largest cattle farms in Paraguay. Agri Terra has always enjoyed sharing this experience with investors.
After having to continue working without German investors since the end of 2015, the herd was initially reduced and investors were paid out. "We then continued to invest mainly with our own funds; and occasionally enthusiastic investors from the USA and Canada approached us," said Carsten Pfau. Success proves the company right.
Now the Agri Terra Group will expand its involvement in South American cattle breeding again. The moment for the renewed enlargement of the herd could hardly be better in strategic terms. All signs point to a return in Argentina to a left-wing government, led by the very politicians that already brought down the Argentine meat industry several years ago. If the cattle giant fails, other producers have to fill the gap. First and foremost Paraguay.
Climate-friendly cattle breeding
Paraguay is about as big as Germany and Austria taken together, but just seven million people live in this South American country. The inland area is one of the richest regions in the world and traditionally an agricultural area.
"Climate change is currently on everyone's mind, and in this context people are constantly talking about global meat consumption," said Carsten Pfau reflecting on the current situation. "In Paraguay, raising cattle is climate-friendly, which is something many of our investors are very interested in." On average, only a single cow grazes on one hectare (10,000 m2) of grazing land in Paraguay. There is a reliance on extensive agriculture; cattle are 100% grass-fed. In addition, Paraguayan law requires that a nature reserve of 50% be demonstrated for each cattle farm. Trees are also planted around the pastures to protect against wind. If you sum up everything, the CO2 balance of Paraguayan cattle farms is very positive.
German investors back on board
People in Germany did not forget about their good experiences with cattle breeding in Paraguay. Interested investors are still asking about this opportunity at the Munich office of Agri Terra as before. "We're working on a regulation-compliant solution in order to be able to take German investors on board again," commented Pfau on the subject. That's exciting news.
About the Agri Terra Group
The Agri Terra owners, German brothers Carsten and Michael Pfau, invest and conduct business in Paraguay since 1995. Successful real estate investors, the brothers shifted their focus towards agriculture over the years. Starting out with the purchase of farmland and small cattle investments, the brothers now manage under the Agri Terra umbrella large agro-projects all over Paraguay. The company is among the largest 1% of cattle owners (out of 142,000 total), and it operates the country´s third largest orange plantation. Substantial investments in greenhouses (vegetable production for supermarkets) as well as other citrus plantations complete the portfolio. In addition, the group develops residential country clubs and invests in the field of landbanking.
Agri Terra only offers projects to investors if the company invests ist own funds into the project as well. Most of the times, Agri Terra is the single largest investor in a project.
Key executives in the company count with decades of experience in their respective fields of expertise. A combination of experience, expertise and dedication provides a solid base for the company´s investments.
Headquartered in Munich, the Agri Terra Group is also registered in Austria, Panama, Paraguay and Hong Kong. In addition, the company counts with representatives for the US and Canada, Switzerland and Romania.
# # #