Optimising TLG Management Partners’ portfolio
Optimising TLG Management Partners’ portfolio
10 April 2023
TLG Management Partners operates nine farmland properties in Uruguay and Paraguay, covering over 40,000 hectares of land. Our properties produce a mix of beef, row crops (primarily soybean, but also wheat, corn, sorghum, and canola), rice, and timber (eucalyptus).
Since taking over the management of these properties between 2017 and 2019, we have worked tirelessly to turn their operation around and improve their underlying assets, such as soils, water resources, infrastructure, and genetics.
However, we know that there is still room for improvement. We are thus implementing a series of strategic infrastructure and production initiatives to continue optimising our portfolio with our clients' support.
One of our most significant initiatives consists in progressively taking over of the operation of 6,640 hectares of cattle areas that remain leased to third-party producers. This will allow us to better control land use, maximise marginal contribution per hectare, generate cross-portfolio efficiencies, and create long-term value for our clients.
Integrating cattle operations across all our properties, implementing rigorous soil usage plans, expanding areas covered with pastures, and applying our regenerative cattle grazing rotation methodology all form the backbone of our cattle strategy. Thus, we can substantially improve cattle management, optimise our use of resources (land, forage, and water), and maximise stocking capacity and weight gain across the portfolio, all the while improving soil health and sequestering carbon.
We are also upgrading and expanding water storage and distribution infrastructure across our properties to provide more cattle with better access to fresh water (thus improving daily weight gain) and to mitigate climate risk.
Other initiatives we undertake include developing proprietary cattle genetics to ensure breeding consistency and production quality, restructuring tenancy agreements to improve the risk/return profile of our leasing activity, and expanding pastures/crop rotations to all currently leased crop areas.
These strategic infrastructure and production initiatives are a work in progress. But we are confident that by continuing to implement these changes, we will generate higher revenue, maximise overall portfolio productivity, and encourage long-term wealth creation for our clients.
TLG Management Partners
