Carsten Pfau, German by birth and globetrotting by trade, has become a leader in European and American investment in South American agriculture; particularly in Paraguay, where he has resided for the past quarter-century, got married, and is raising a family.
Photo Credit: Courtesy of Carsten Pfau
Pfau is the Founder and owner of Agri Terra, which has attracted dozens of high net worth individuals and companies to join together as a leading conglomerate for agricultural development. “Our company invests in agriculture, citrus, cattle, which makes us a little exotic in Germany, but I believe we are now the market leader in alternative investments,” he says. “We have high returns in Paraguay because production, taxes, and land costs are low. People are interested, so because I have been here for a while, I’ve become the go-to guy for European investors, as well as some Americans.”
Agri Terra, based in Munich, specializes in alternative and exotic investments in South America. “We raise capital, buy land, and develop plantations from scratch. Paraguay has great soil, good sun, so citrus grows well. As a family-owned and operated company, most of our investors appreciate that we combine the German and South American mentalities. We built a bridge between two worlds that are different, and we understand both worlds work in their own way. Combining the two is not easy.”
Photo Credit: Courtesy of Carsten Pfau
The COVID-19 pandemic that took hold of the world in 2020 has given Agri Terra’s investors, whether old, new or potential ones, as realistic an indicator that working the land is a safe and smart investment, precisely because while many industries had to temporarily close their operations, the agriculture sector had no interruption. “Agriculture has been neglected because tech and other more exciting stuff took attention away. With the pandemic, agriculture has never stopped producing because everyone has to eat. Luxury is redefined. The basic stuff becomes luxury. You can’t eat your Louis Vuitton bag,” Pfau says.
He explained the essential aspects of his work, which translates to all countries that took measures to combat the spread of the novel Coronavirus. “It’s a very drastic scenario. If supermarkets are getting emptied out, people start to panic. As a company, we had a special permit. When we gave free food to poor people in the countryside, we were escorted by the police to make sure COVID-19 control posts every few miles did not stop us. As much as we like to indulge in luxury goods, we are reminded that at the end of the day, we can appreciate that chicken breast in the supermarket that we may have taken for granted before.”
Photo Credit: Courtesy of Carsten Pfau
Apart from his work with Agri Terra, Pfau is an active TV personality in Paraguay, Germany, and the US. He sponsors and occasionally co-hosts a political show. He hosts another, weekly one, named “Free to Choose” (an ode to Milton Freedman), with three other panelists including a former Minister of Commerce. “Each Sunday we take an hour to discuss politics and the economy. It’s a highlight of the week for me.” He is also a contributor on FoxNews.com as the go-to when it comes to international politics and economics, and its sole German economics expert.
Pfau is leading the development of a gated golf country club and community called Eco Vita, approximately 45 minutes away from the capital city of Asuncion. “We bought 300 hectares, and 75 were not usable for agriculture, so we are turning that into the country club, Eco Vita. We just bought new land to expand it so it will be more than 100 hectares.”
Agri Terra has seen a surge in interest and new capital injections in 2020. “We are receiving more investments than ever before,” he continues. “In recent years, people would see a tech or pharmaceutical company and say, ‘Wow, I will invest in that; the promise of return is much higher.’ Agriculture will probably not provide you an astronomic higher return, but it will be steady and it works in any scenario. It works in wartime, pandemics, and boom times, so I say that that’s a good thing. That’s why we do it.”
For more on Carsten Pfau and Agri Terra, visit www.agri-terra.net.
