China in negotiations with Argentina to invest in local pork production

According to Argentina’s Undersecretary for Trade and Investment Promotion, the country is approaching an initial agreement with China that could pave the way for potential Asian investments in local pork production for export.  The deal could eventually result in pig breeding in Argentina supported by China. It is worth remembering that Beijing is trying to recover its animal protein production after the African swine flu decimated its herds.

Undersecretary Pablo Sivori said a memorandum of understanding could be signed with China in the coming weeks. “We already agree with the content of the memorandum, ”said Sivori, adding that the Ministry of Foreign Affairs asked the Chinese government to sign the document virtually.  He stated that the memorandum is the result of a process initiated by the private sector and would involve investment structures in Argentina, in addition to cooperation in health, scientific and technological areas related to the sector.

Although Argentina is already a major exporter of beef to China, it is not a major player in the global pork market. According to official data, in 2019 the country produced 630,000 tonnes of pork, of which only 34,000 tonnes were exported.  The chart below shows Argentine pork exports month by month since 2018:

Source of report: Reuters

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