Hugh Bronstein, Tom Polansek.
Reuters. September 11, 2019
Argentine soy farmers and crushers expect a boost in demand next year after the South American grains giant won long-sought approval from China to export soymeal to the world’s biggest consumer of the livestock feed.
Argentina, the top international supplier of soymeal, announced on Tuesday that China would allow imports for the first time following decades of talks. It was a breakthrough amid a whipsawing trade war between Washington and Beijing that has hit U.S. growers.
The deal, formalized in Buenos Aires on Wednesday, paves the way for Argentine farmers and soy processors to send shipments to China from early 2020 once required plant approvals and registrations have been made, a fillip for the world’s dominant soymeal producer.
“This news is huge for our country given the magnitude and potential of the new market,” the Rosario grains exchange said. The majority of Argentina’s soy is grown and crushed in the area around Rosario, on the banks of the Parana River.
“(It) will allow exports to the Asian country to kick in effectively from next year.”
China consumes an estimated 67.3 million tonnes of soymeal each year to feed its giant hog herd, the Rosario exchange said, though it has imported only small amounts of the processed soy product, preferring to crush the beans domestically.
This has meant that while China has been the top buyer of raw Argentine soybeans, it has long resisted opening up to soymeal. Argentina’s top export markets for the feed are currently Europe, Vietnam, and Indonesia.
Gustavo Idigoras, president of Argentina’s CIARA-CEC chamber of grains exporting companies, said he did not expect Argentina to “export an important volume to China in the first year.”
“But for us, having 2 or 3 million tonnes in the market in 2020 would be symbolic in terms of building confidence and developing future business,” he said.
Argentine soy farmers and crushers expect a boost in demand next year after the South American grains giant won long-sought approval from China to export soymeal to the world’s biggest consumer of the livestock feed.
Argentina, the top international supplier of soymeal, announced on Tuesday that China would allow imports for the first time following decades of talks. It was a breakthrough amid a whipsawing trade war between Washington and Beijing that has hit U.S. growers.
The deal, formalized in Buenos Aires on Wednesday, paves the way for Argentine farmers and soy processors to send shipments to China from early 2020 once required plant approvals and registrations have been made, a fillip for the world’s dominant soymeal producer.
“This news is huge for our country given the magnitude and potential of the new market,” the Rosario grains exchange said. The majority of Argentina’s soy is grown and crushed in the area around Rosario, on the banks of the Parana River.
“(It) will allow exports to the Asian country to kick in effectively from next year.”
China consumes an estimated 67.3 million tonnes of soymeal each year to feed its giant hog herd, the Rosario exchange said, though it has imported only small amounts of the processed soy product, preferring to crush the beans domestically.
This has meant that while China has been the top buyer of raw Argentine soybeans, it has long resisted opening up to soymeal. Argentina’s top export markets for the feed are currently Europe, Vietnam, and Indonesia.
Gustavo Idigoras, president of Argentina’s CIARA-CEC chamber of grains exporting companies, said he did not expect Argentina to “export an important volume to China in the first year.”
“But for us, having 2 or 3 million tonnes in the market in 2020 would be symbolic in terms of building confidence and developing future business,” he said.
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