As the trade war between China and USA continues to escalate, China is looking beyond USA to do business.
China is moving away from US’s agricultural products. The country is planning to engage with South American countries to procure soy meal – particularly Brazil and Argentina.
Argentina, the world’s biggest exporter of the animal feed, aims to send shipments of soymeal to China in the beginning of 2020.
However, there are still a lot of processes and procedures to be followed before the actual trade takes place – including final approval of sanitary rules and Argentina’s crushing plants as well as inclusion of meal on China’s customs register, among others.
China was initially reluctant to buy Argentinian soy meal as it prefers to import raw soybeans and process them in China. However, the ongoing trade war has forced China to reconsider their stance.
A Chinese delegation has already visited crushing plants on the Parana River run by Bunge, Louis Dreyfus, Cargill, Aceitera General Deheza, Molinos Rio de la Plata, Cofco and Renova. These plants are expected to ship 2.3 million metric tons of soy meal to China in 2020, or roughly 8% of production.
The soy meals are expected to be bought by chicken farms in China.
Meanwhile China’s pork industry is struggling to contain the spread of African swine fever.
For more on China’s animal feed market, attend CMT’s 4th Global Feed Summit in Bangkok.
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