July 11, 2011

Argentina to export beef, corn to China again

China's sanitary agency has opened its market to corn, beef, wine, biofuels, and barley from Argentina, marking the end of a year of negotiations and sanitary agreements, according to the Argentine agriculture ministry.

Argentina's 2006 foot-and-mouth disease (FMD) outbreak ended beef shipments to China, and prospects for beef trade were limited due to high Chinese demand for other meats, such as pork or chicken.

The agriculture ministry has also forecast corn production in Argentina at 21.6 million tonnes for the 2010/11 season, one of the largest crops on record.

Argentina is the world's second-largest corn exporter behind the US, exporting around 18 million tonnes in 2010. China has historically been a major corn exporter, but a drought last season and soaring demand have turned China into an importer.

Argentine beef sales to China will most likely focus on innards and high-grade beef cuts for hotels and restaurants, according to the agriculture ministry.