August 3, 2020

 

Argentina set to complete swine deal with China to boost domestic production

 

Pablo Sivori, Argentina's undersecretary of trade and investment promotion said an Argentina - China swine deal is about to be completed, which could see China invest in Argentinian pork production for export, Reuters reported.

 

The deal could see Argentinian pork farms backed by Chinese companies, especially as China has been looking at measures to improve its pork supply after its domestic production was badly affected by an African swine fever outbreak.

 

Sivori said Argentina and China could sign a memorandum of understanding (MOU) in the new few weeks. Felipe Sola, Argentina's Foreign Minister said investment from China could rapidly boost pork production in Argentina.

 

Sivori said the MOU's content has been agreed upon, with the Chinese government to sign the MOU virtually.

 

The MOU was initiated by the private sector, involving frameworks for Chinese investment into Argentina in addition to cooperation in health, scientific and technological research in the swine industry.

 

Argentina is major supplier of beef to China, but it is not a big pork player. The country produced 630,000 tonnes of pork last year, with 34,000 tonnes exported.

 

Sola said with Chinese investment, Argentina could improve pork production to 9 million tonnes.

 

In March, the Chinese government told domestic pork companies to invest in overseas supply chains to boost local pork supplies.

 

Lisandro Culasso, Argentine Association of Pig Producers (AAPP) head said there has been interest from China, but investments depend on the MOU.

 

Experts from both Argentina and China dismissed Sola's projected Argentinian pork production.

 

Sivori said Argentina could only expect production to double within four years as sanitary production measures set by local authorities must be obeyed.

 

A Chinese firm executive, from a company that has investments in overseas livestock farming said Argentina is "risky" for investment due to local market volatility and the distance between both countries, which could make shipping swine an issue.

 

He added that frozen pork would be easier to ship, but that would mean Argentina needs to establish an extensive production chain and manage labour heavy slaughterhouses.

 

-      Reuters