BUENOS AIRES (Reuters) – 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, its top commodity, to the world’s biggest consumer of the livestock feed.
Argentina’s government announced on Tuesday that China would allow the import of its soymeal for the first time following decades of talks. That agreement will be formalized in Buenos Aires on Wednesday.
Deal - Way - Argentine - Farmers - Processors
The deal paves the way for Argentine farmers and soy processors to start sending 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 in a statement. The majority of Argentina’s soy is grown and crushed in the area around Rosario, on the banks of the Parana River.
Exports - Country - Year
“(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.
China - Buyer - Argentine - Soybeans - Argentina
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.
Grain industry insiders said that the U.S.-China trade war had helped make Argentine soymeal exports more alluring as Beijing looks to diversify its supply...
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