Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Exclusive: Argentine bid to win access to China soymeal market stalled - chamber

Commodities Nov 23, 2018 02:31AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Soy plants are seen at a farm in Carlos Casares

By Hugh Bronstein

BUENOS AIRES (Reuters) - Talks to allow Argentine soymeal livestock feed to enter China are progressing at a slower-than-hoped pace amid bureaucratic issues, including Chinese demands to inspect local crushing plants, the head of Argentina's soy industry chamber said on Thursday.

Luis Zubizarreta, president of Argentina's ACSOJA soy industry chamber that represents farmers, exporters and seed companies, said the country was keen to clinch an export deal that would secure access to the world's biggest hog- and pork-producing country.

China needs enormous amounts of animal feed and has historically protected its soy crushing industry by importing raw soybeans to be processed locally.

However, a trade war between China and the United States - its second largest supplier of soybeans - has limited the flow of U.S. oilseeds to Chinese plants, encouraging them to look elsewhere.

Argentine President Mauricio Macri's government hopes to announce the soymeal-to-China agreement at the G20 meeting in Buenos Aires at the end of this month, but that deadline looks increasingly ambitious.

"The government of Argentina is pushing to make this happen but it depends on a decision by the Chinese government to do something it has never done before: import soymeal from Argentina," Zubizarreta said in an interview.

"It's a complicated road to change a policy that has been in place for such a long time," he added.

Argentina has long been the world's top exporter of soymeal but the crushing plants that dot the banks of the Parana River, its main grains thoroughfare, are working at only about half their capacity due to fallout from the U.S.-China trade war.

U.S. President Donald Trump and his Chinese counterpart Xi Jinping are due to meet at the G20 summit in Buenos Aires for highly anticipated talks on the trade dispute.

Beijing has slapped a 25 percent tariff on U.S. soybean imports, effectively halting soybean shipments to China. The resulting glut of cheap soy in the United States has lowered input costs for U.S. meal crushing factories, making them more profitable and rendering crushers in Argentina uncompetitive.

The soymeal manufacturing industry in Argentina was already reeling from a drought on the Pampas farm belt that dried up soybean supplies this year.

The opening of China to Argentine meal would be a boon to the South American country, whose large processing plants located between the Pampas and the deep-water ports of the Parana make it the world's most efficient place to crush soy.

"The government is confident that the negotiations will advance, but things are going slowly," Zubizarreta said, adding that there had been no progress in registering plants with Chinese authorities.

"We are pushing to advance in all the steps, including the inspection and registration of Argentine soy crushing plants by the Chinese authorities. The ball is in their court."

Argentina's agriculture chief Luis Etchevehere was in Beijing earlier this month, trying to settle the deal.

There was no immediate comment from the Chinese embassy in Buenos Aires. A spokesman for the Argentine agriculture secretariat declined to comment on the talks.

Zubizarreta said that, given economies of scale advantages enjoyed by the massive crushing plants on the Parana River, Beijing could include some "reasonable limits" on the amount of Argentine meal allowed into China.

"It is very important for Argentina to sell value-added products," Zubizarreta said. "China has historically protected its soy crushing industry but they need to protect the food security of their country."

Exclusive: Argentine bid to win access to China soymeal market stalled - chamber
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email