(Photo: President Alberto Fernández greets Chinese special envoy Arken Imirbaki)
Buenos Aires, February 5, 2020. It is clear for everyone around the world that Argentina is one of the most world competitive countries producing corn and soybean, the most used feed compounds by the animal protein industry. In fact, producing 56 million metric tons of corn, the country exports 36/38 million or more than 60%, while other corn producer countries like the US or Brazil export 30% of their production or even less. In the case of the soybean, near cent percent of the production is exported as byproducts or the bean.
On the other hand, the Government applies 12% of tax export to the corn and 30% to the soybean, reducing feed cost for the meat industry.
Both elements are joining to push Chinese mega-investment in pork production. According to some media like ON24, the Asian country could land into Argentina this year for the development of 200 farms with 15,000 sows each one. The local animal health company Biogenesis Bago, which produces FMD vaccines in both countries would be the link between the Chinese investors and the local developers. Esteban Turic, CEO of Biogenesis Bagó, admitted to the media that the first developments could start during the present year.
Other sources told the media that the good relations between both countries could accelerate the arrival of the investments. One of the bottlenecks could be the few slaughterhouses habilitated by China to export, but local authorities are optimistic about the increasing of the number in the coming months.
Lisandro Colusso, chairman of the Argentine Pork Producers Association told the media that there is a high interest from Chinese businessmen into produce pork in Argentina, and the Santa Fe province could be the most favored one.