February 21, 2012

China, Argentina sign corn imports pact

China has agreed on a deal with Argentina to import corn, according to the Argentine agricultural ministry on Thursday (Feb 16).

This move may open another option to the country apart from US shipments.

The statement said that as China is a huge consumer of corn, the deal is expected to pave the way for "significant" imports by the Asian country going forward.

The China National Grain & Oils Information Center said the country is the second-largest consumer of corn in the world, and it is expected to purchase four million tonnes of the commodity by the year ending September 30. Customs data have shown that imports in 2011 touched 1.75 million tonnes.

Beijing-based senior analyst Ma Wenfeng with Orient Agribusiness Consultant Ltd noted, "More Chinese companies may consider investing in Argentina's corn industry," adding the agreement may also lower the prices of imported corn.

Data from the General Administration of Customs show that until 2010, China was largely self-sufficient in corn, when imports jumped 17-fold on-year to 1.57 million tonnes.