A senior official from Argentina is in China specifying all the sanitary permits that are needed in Beijing so that the export of soybean meal to the Asian economy becomes effective, in this way they will be able to obtain the same results in the coming weeks, This was what was indicated this week by a government witness and a senior official in the agro-export sector.
The production of grains and cereals, among the main ones are soybeans, corn and wheat could be the lifeline of the Argentine economy, which is also badly hit.
Luis Miguel Etchevehere, who is the secretary of Agribusiness of the country, is in talks in Beijing about the sanitary aspects, all this with intension of the byproduct of soy, which will be exported to China, in Argentina where there is a quite online trading environment hit on the grain, because there is a trade war between China and the United States at present.
According to what Reuters reports, the president of CIARA, Cámara Agroexportadora de Argentina, who is Gustavo Idígoras, commented that the current government of the country, together with President Mauricio Macri, is waiting to be able to announce the agreement in the next weeks, possibly during the summit of G20 leaders, this will be held in Buenos Aires later this month.
One of the main objectives of the government of the South American country is that there is an authorization by Xi Jinping for the celebration of the G20 meeting, one of the main ideas is that the Asian country can give Argentina the silver to make flour of soy during the celebration of the meeting.
However, Argentina is one of the key exporters of oil and soybean meal, this economy has never been exported to China, where oilseed processing was carried out, which was imported mainly from the United States.
For the past year, the derivative of soybean had a remarkable income in favor in Argentina for the amount of 9.080 million dollars, all this according to the Government of the country. But the economic war that exists between China and the United States is a great threat and a serious problem for the country, this was what commented the official Idígoras after the application of the tariffs on the part of Beijing to the soybean of the United States, as part of the discussion and for that reason the prices of it collapsed.
In addition to the low prices of soybeans in the United States, Washington’s subsidy is added to farmers in the country where they try to compensate for the fall of the loss of the Chinese market, this could cause a growth in the competitiveness of the country’s farmers, as well as a notable loss in local markets.
On the other hand, the senior official of CIARA commented that it has reduced the competitiveness of the union and for the moment, only have an idle capacity of 45%. It is expected that by the end of this year the factories in Argentina will record a milling of 30 million tons of grain.