January 24, 2005

 

 

Argentina eyes China beef market

 

Argentine officials are setting their sights on the Chinese market now that Argentina has been declared free of foot-and-mouth disease following a vaccination drive.

 

The world animal health body, known by its French acronym OIE, certified on January 18 that all of Argentina's territory is clear of the highly communicable disease in cattle, lifting the final sanitary barrier on Argentine beef exports.

 

Argentine officials have since headed to China to explore the lucrative market for the country's beef exports. "This makes us think that in the next few days, one month, two months, Argentina will start selling beef to China," Agriculture Secretary Miguel Campos said.

 

FMD causes severe loss in meat production and can be spread by humans even though it does not harm people.

 

China, the fourth-largest importer of Argentine products, signed an agreement in November with the Argentine government to immediately lift its ban on Argentine beef upon proof that FMD was no longer present anywhere in the country.

 

Argentina, which exported US$1 billion worth of its mostly grass-fed beef last year, plans to take it up on that promise starting on Monday when a delegation from the South American nation touches down in China, OIE declaration in hand.

 

The negotiators aim to obtain sanitary permits to sell fresh and frozen Argentine beef and not just the processed beef that China has allowed up to now.

 

"We're going there with a proposal and we'll be negotiating with the Chinese technical staff to reach a consensus," said Claudio Sabsay, the Agriculture Ministry official heading the delegation.

 

North America Also Targeted

 

In 2001, Argentina detected its first outbreak of FMD in seven years, prompting its top trading partners to close their borders to its beef. Since then, it has slowly eradicated the disease through vaccinations.

 

Argentine beef producers are thrilled about the prospect of access to China's market of 1.3 billion people, even though the per-capita beef consumption there is only about 6 1/2 pounds (3 kilos) annually compared with Argentina's 154 pounds (70 kilos).

 

Miguel Gorelik, director of Quickfood, a major beef exporter, sees two different consumer markets to target in China. The first is an increasingly westernized and affluent segment that is likely to buy quality beef cuts at premium prices.

 

"There is also a segment of consumers with a culinary culture that uses sub-products that in many countries are not valued, such as tendons, membranes and certain veins," he said.

 

In addition to China, Argentina is also keen to seek out the markets of the United States, Canada and Mexico, Campos said.

 

But producers are patient.

 

"Our maximum aspiration is that by the end of 2005 we regain the quota we had before of 20,000 tons (of fresh boneless meat) and thereby gain a presence in the US market," said Arturo Llavallol, president of the Institute for the Promotion of Argentine Beef.