CAF and ORT organized conference on agro-businesses and natural resources

(Montevideo, November 2013). During a conference organized by CAF, Development Bank of Latin America, and ORT University in Uruguay, a group of distinguished experts analyzed the situation of the farming sector in Uruguay, addressing productive and environmental aspects. 

In the meeting, called Agro-Businesses and Management of Natural Resources in Uruguay, a study was presented which concludes that the main problem faced by the farming business is the erosion of the soil caused by the lack of crop rotation, which results in productivity drops and the contamination of water resources.              

Valentín Picasso, director of the Department of Environmental Systems of the Faculty of Agricultural Science of the Universidad de la Republica, author of the document together with other researchers, explained that it is necessary to become aware that "when meat, wheat, or soy are exported, the soil is also exported". The professional indicated that the erosion generated by the crops is not quantified "in economic terms." 

He highlighted that in this regard, "the greater the erosion, the lower the productivity". Although with the use of fertilizers the situation improves, the same level as with crop rotation cannot be reached. In addition, the rain drags the eroded soil and contaminates waters to the point where agricultural activity constitutes 80% of the contaminating factor in the Santa Lucia River, which supplies water for the country's capital.  

At the same time, Gladis Genua, CAF's Director Representative in Uruguay, praised the report and noted the need to act with responsibility when making investments. She stated that "it is essential to have studies that enable the evaluation of a project's impact from an economic and also environmental point of view. For us, it is very important to have that knowledge when the time comes to finance enterprises and to be able to promote sustainable investments. 

Gustavo Ardila, CAF's Vice-President of Productive and Financial Sectors, restated the entities concern about "taking care of the impact of enterprises on natural areas", and ensured support for research aimed at improving the preservation of natural resources, indicating that "the region must make efforts to add value to its exports to prevent the return to the production of primary products". 

The meeting on Agro-Businesses and Management of Natural Resources in Uruguay closed the 2013 Public Policy discussion cycle organized by CAF and the ORT University of Uruguay. In addition, the cycle included conferences regarding energy, logistics, and infrastructure. 

The following link shows the complete video of the conference.