7 plants were audited by Chinese inspectors in August
Two weeks after China and Argentina signed a deal allowing Argentina to export soybean meal to China, China has approved seven soybean crushing plants in Argentina for export.
According to Argentina’s Ministry of Agriculture, Livestock and Fisheries, the plants approved for export include those owned by Bunge Ltd.’s Bunge Argentina, LDC Argentina, Cargill Inc., Molinos Río de la Plata, Renova, T6 and COFCO International Argentina. The plants were audited by Chinese inspectors in August.
“This historic achievement allows us to trade with the world’s largest consumer of vegetable protein, and consolidates our country as the main exporter of flour and soybean oil on the planet,” said Luis Miguel Etchevehere, Argentina’s secretary of agroindustry.
China increasing imports from Argentina amid trade war with US
Argentina’s soybean meal producers have been trying to break into the Chinese market for several years, but only amid the U.S.-China trade war was it finally able to do so. The first shipments of soybean meal from Argentina to China are expected in early 2020, after complex approval procedures are complete.
According to Reuters, Argentina is expected to export 26 million tons of soybean meal this year and 8.5 million tons of raw soybeans. China consumes an estimated 67.3 million tons of soybean meal per year.
Throughout the U.S.-China trade war, China has imported less and less of America’s soybeans and instead increased imports of raw soybeans from Brazil and Argentina for crushing in China, according to Bloomberg. With this deal, it is increasing its imports of soybean meal from Argentina. The products will be used by broiler producers in China, who have seen an increase in demand as a result of the African swine fever (ASF) virus, which has devastated the country’s pig herd throughout the past year.
