The main challenges of Argentina’s agribusiness sector seeks to sell more to China It focuses on several structural axes: Biotechnology’s competitiveness, logistics and added value, as well as regulatory business risks.
In a frame China Agricultural Business DayMade in Buenos Aires Grain ExchangeHome Argentine agro-industry export leaders have brought to the table vital trade relationship figuresBut this requires urgent strategic updating. It was highlighted that this year was a record year in terms of soybean volume, but structurally stagnant compared to competitors in the region.
The committee was composed of Gustavo Idigoras, President of Ciara-CEC; George Breitschmidt, President, Ipcva; and Matthias Korti, COFCO Commercial Coordinator Argentinaa leading food company in China.
Idigoras pointed out that the Asian giant imported 13 million tons of soybeans from Argentina this year, while the traditional amount was four million tons. He added that the challenge now is to achieve diversification. “This is why Argentina’s sales to China have grown almost exclusively this year. “We will achieve a record number of total dollar sales due to the growth of soybeans, but it has also diversified into other products, such as the case of sorghum – a crop that was in the process of significantly reducing its surface area – which, thanks to China’s trade relations with the rest of the world, has allowed Argentina to penetrate this market.”
Another important product is barley, especially fodder barley, which finds an emerging market in China. “We have the potential to continue to grow. We, as a profession, want to sell products with the greatest added value. It is very good to sell soybeans, flour and barley, however “We would like to grow in the (soybean) oil market.”He pointed out. Argue so Sunflower oil begins to reach the Chinese market Little by little they began to recognize the Argentine quality.
For the manager, if it is possible to add new products, such as sunflower kernels, then Argentina can “The value of annual exports to China exceeds $10 billion.” However, he warned that bureaucracy is an obstacle: China negotiates “case by case” and there are currently 25 to 50 producers waiting for a health opening. “If they speed up those times, we will be in a position to compete with Brazil ‘without a duel’.”He mentioned.
Curtis, meanwhile He was frank when explaining why Brazil today exports 80% of its production It continues to grow, while Argentina remains stuck at 50 to 52 million tons of soybeans. “Twenty years ago, Brazil and Argentina produced the same thing. But they are thinking 100 years from now, and we are not.” He crosses. He pointed out that the market this year was associated with lower deductions, which allowed the global price to reach the product better and generate a very large sales volume that was reflected in what was exported to the Asian market.
The executive highlighted the technology gap and emphasized this In 2024, Brazil approved 322 soybean products, while Argentina faced significant delays. “Argentina has potential, but lacks infrastructure and rules. Brazil estimates between 175 and 180 million tons; “We stay as we are” He added.
He noted that sorghum started shipping because it was a “small window” that happened in Japan and then went to China during the trade conflict with the United States, and today it is a core market.
For his part, Breitschmidt confirmed that China absorbs 70% of the volume of beef exported by Argentina, about 600 thousand tons.He explained that this does not compete with Argentine barbecue. “In livestock farming, you break the animal apart and need to put each piece in its proper place. China brings in frozen meat for processing, Europe brings in quality cuts, and the United States brings in “lean beef” for hamburgers. He explained that this does not harm the internal market, on the contrary, we need to produce more.
He also highlighted the opening of high-value areas, such as bovine gallstones, required by traditional Chinese medicine, and the progress in offal protocols, which is vital for media integration. He pointed out that Brazil rose from 50 to 230 million heads of livestock, while Argentina remained at 50 million. “To achieve growth in livestock farming, long-term public policies and predictability are needed,” he said.
In order to overcome this, export duties must be reduced, especially on soybeans, Idigoras concluded. “China should also be seen as a partner in infrastructure: railways, rolling stock, locomotives and technology. A railway recovery is key to reducing logistics costs and boosting regional economies.”he synthesized it.