Agriculture in Uruguay
Agriculture played such an important part in Uruguayan history and national identity until the middle of the 20th century that the entire country was then sometimes compared to single estancia (agro estate), Montevideo being its Casco or administrative head and its hinterland, the remaining part of Uruguay, being the farmland that generated the wealth that was spent in the capital. Another saying went “Uruguay es la vaca y el puerto”, Uruguay – that is the cow and the port (of Montevideo). So, when in the 1950s world market prices of Uruguay’s main export commodities like beef and wool depreciated drastically, Uruguay’s golden era of prosperity came to an end.
Today’s agriculture still contributes roughly 10% to the country’s GDP and is the main foreign exchange earner, putting Uruguay in line with other Agro Exporters like Brazil, Canada, New Zealand. Uruguay is member of the Cairns Group.
Uruguay’s agriculture is more extensive than in most other agroexport countries, (extensive here meaning low input of manpower, technology, capital) resulting in comparably lower yields (beef per hectare, crops per hectare) on one side, but creating opportunities on the other side to market Uruguayan products as natural, ecological. Campaigns like “Uruguayan grass fed beef” and “Uruguay Natural” aim to establish Uruguay as a premium brand in beef, wine and other food.
The often traditional and folcloristic appearance (gauchos, horses, etc.) of cattle ranches, together with the historic estancias remaining from Uruguay’s golden era gave birth to a rather new aspect, estancia tourism.