Uruguay Showcases Its Advantages for Food Industry Investment at FiSA

At Food Ingredients South America (FiSA), Uruguay positioned itself as a strategic base for investment in food, ingredients, and related services, offering companies a gateway to regional and international markets. Uruguay XXI took part in the event, held August 4–6 at São Paulo Expo, as part of its investment promotion strategy. Its agenda focused on promoting Uruguay’s investment proposition, tracking industry trends, and connecting with key regional and international players.

According to the organizers, the event drew more than 12,000 attendees and featured over 290 exhibitors from Brazil and abroad. Suppliers, companies, industry experts, and research and development leaders explored a broad range of functional and natural ingredients, additives, flavorings, colors, and proteins, along with a program covering innovation, regulation, and changing consumer trends.

Uruguay also took part in the technical program of the Summit Future of Nutrition, FiSA’s conference connecting applied science, business, and regulation. On Thursday, August 6, Juan Ignacio Montans, an investment promotion specialist at Uruguay XXI, joined an international panel on the Mercosur–European Union agreement. Together with representatives of Argentina and Brazil, he discussed the opportunities and risks the new framework presents for companies across the region.

The Mercosur–European Union Interim Trade Agreement began provisional application on May 1. It provides for tariff liberalization across more than 90% of bilateral trade and includes provisions on goods, services, rules of origin, trade facilitation, sanitary and phytosanitary measures, intellectual property, and sustainable development. For businesses, the framework expands market access opportunities and provides clearer rules for planning operations and investment.

Learn more about market access conditions for your products on the Mercosur–European Union Agreement portal

“Deciding where to invest today means thinking long term. Beyond tariff reductions, there is now a regulatory framework that provides greater predictability for that decision. Uruguay brings structural advantages: a renewable power mix, traceability, deforestation-free production, and low environmental risk—the very credentials Europe is seeking,” Montans said during the panel.

These conditions underpin Uruguay’s value proposition for potential investors. According to Uruguay XXI’s report Uruguay’s Food Sector 2024, the country offers opportunities across the entire value chain—from primary production and food and ingredient manufacturing to packaging, trading, regional distribution, and support services. The local food industry includes more than 260 companies engaged in production, storage, sorting, or packaging; it supports approximately 41,000 jobs and exports more than US$6.5 billion annually. Fifty-six percent of these companies are exporters, while 27% have foreign ownership stakes, reflecting the sector’s strong international orientation.

Uruguay complements this production base with traceable raw materials, a temporary admission regime that allows inputs to be imported duty-free when the finished product is re-exported, and a strategic location for serving regional markets. On average, more than 94% of the country’s electricity generation comes from renewable sources, and Uruguay is home to over 60 research groups and centers focused on food. These attributes support projects centered on efficiency, innovation, and compliance with environmental and food safety requirements that are becoming increasingly important in global trade.

Through its participation in Food Ingredients South America, Uruguay XXI positioned the country within the discussions shaping the industry’s future. Combined with Uruguay’s established competitive advantages, the Mercosur–European Union agreement strengthens the country’s position as a destination for food and ingredient investment serving regional and international markets.

Learn more about why you should invest in this sector here