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The Government prepares another investment agreement with China to sell pork for US $ 2 billion

2020-06-04T23:07:09.060Z


The relationship with Xi Jinping deepened during the pandemic through the purchase of hospital supplies. Now the government is going for the massive sale of pork, but it needs infrastructure, which the Chinese will provide.


Natasha Niebieskikwiat

06/03/2020 - 8:00

  • Clarín.com
  • Economy

The Government is now negotiating with China an ambitious plan for the massive export of pork to that country, which, according to official figures, would require an investment in facilities and infrastructure of up to US $ 2.7 billion in three years. By then they expect to be exporting up to 930,000 pig slaughter heads per year for up to US $ 2,000 per year.

Furthermore, there is already a draft memorandum of understanding that can be signed as soon as a trade mission is prepared that is preparing for Beijing this year, in which the bilateral mixed commission that was paralyzed about three years ago would be reactivated . When the quarantine is relaxed, it will be launched and, in fact, they entrusted high sources to Clarín , it will be the prelude to a trip by Alberto Fernández to Beijing. 

The new policy, which includes conversations about soccer n egocios and expansion of the network of consulates in China, and more visas for Asians to do tourism in Argentina, will begin to be launched in the middle of this month when it is already Ambassador Luis María Kreckler in Beijing . The new commercial representative, Sabino Vaca Narvaja , recently landed there , and the trade mission - if done - will be led by the Secretary of International Trade of the Chancellery, Jorge Neme.

In the draft to which Clarín agreed , the decline in pig production in China is remembered - it lost 40% of it - as a result of the slaughter they carried out after the 2019 swine fever , which will generate a deficit of this type of meat for the next eight to twelve years. It is within this framework that the government talks that this country has all its agro-industrial potential available, a subject that former ambassador Diego Guelar has already worked on.

In the short-term plan, of 1 to 3 years, affirm the men of foreign trade, 20 technified farms can be made available with a required investment of those US $ 2.7 billion in a stage to generate exports for US $ 2 billion. But in the memorandum they plan to sign, they also contemplate an eight-year investment that would reach the planned $ 27 billion with 200 technical farms and exports of up to $ 20 billion.

There it would reach 93 million slaughtered heads, with 20 million tons of corn and 5 million tons of beans to feed them. One of the problems that Argentina presents today is the lack of sows, for reproduction. And within eight years they want to have 3 million mothers.

Sources from the agro-industry, who are aware of the negotiations, pointed out to Clarín that "the potential is enormous", and even "fall short" with the projection. But at the same time they remarked that "it will be very difficult for them to carry out the plan if they do not strongly incorporate the private sector," including the great ones such as Cargill, Cofco, or Smithfield, acquired by the Chinese themselves five years ago.  

The projected business is now part of the new policy towards the Xi Jinping government, which was further deepened by the coronavirus pandemic. Aerolineas Argentinas has already made more than a dozen trips to Shanghai to bring tons of hospital supplies purchased by the Nation and provinces of Buenos Aires whose value has not been laundered. This Tuesday announced another 15 flights to look for more items, despite the adjustment implemented by the company, and at the same time private planes continue to bring tons of donations from provinces and Chinese companies to the country.

Attunement with China is total even within the framework of the World Health Organization, to the point that the Government did not want to co-sponsor an investigation that the United States asked to open in the body to search for the origin of COVID 19 - for which it blames Beijing- and they did accompany 122 countries. Donald Trump's distant policy towards Latin America created more political and economic spaces for the Chinese. 

And this week it was learned that the Government  also sent an Argentine flag to the New Generation Long March Launcher Return Capsule (Chinese) 5B (LM-5b) and that it has just been returned by the Chinese Academy of Space Technology, to the Argentine embassy in Beijing. There was even a ceremony in the Chinese capital to express the gratitude of the Chinese for the support provided by Argentina to the Chinese Lunar Exploration Program, which incidentally maintains the controversial base in the province of Neuquén.

Source: clarin

All business articles on 2020-06-04

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