A top agriculture ministry official explained last week that Argentina plans to export substantial amounts of soymeal to China after the next harvest in May.
Argentine officials were in Beijing on Friday finalizing the paperwork needed to ship the country’s product to China, Santiago del Solar, ministry chief of staff, said in an interview CNBC reported.
Argentina is already the words largest exporter of soymeal. In 2017 they exported 28.3 million tonnes of soymeal. Just over 33 percent of that went to the European Union.
Beijing placed tariffs on U.S. soymeal in June as the result of an ongoing trade dispute. That tariff, along with others is opening doors for countries like Argentina in the Chinese market.
CNBC reported that U.S. President Donald Trump, recently explained that he expects more soy exports to go to Europe. However, del Solar didn’t seem concerned that the U.S. would push Argentina out of their current markets including Europe, Vietnam and Indonesia, despite the fact that U.S. soy exports are on the rise in the E.U.
If China choses to go through with their soymeal deal with Argentina, the country will have limited supplies available due to drought. However, it is expected that farmers will have to increase production in the next planting season to meet the demands of China.
U.S. pork industry to capitalize on Argentina
As Argentina capitalizes on the disputes between the U.S. and china on the feed side of the industry. The U.S. pork industry looks to benefit from Argentina imports.
Last week U.S. Secretary of Agriculture Sonny Perdue celebrated the reintroduction of American pork products to the Argentine market after more than 20 years.
“This new market is a big victory for American farmers and ranchers. This is a great day for our agriculture community and an example of how the Trump Administration is committed to supporting our producers by opening new markets for their products,” said Perdue.