China To Invest Massively in Argentina's Pork Production Project

China is set to kick start a multi-billion dollar project which seeks to invest massively in Argentina’s pork production over the next 4 years.

 

According to reports, the Latin America country is about to receive almost US$ 3.8 billion of investments. The project aims at adding 300,000 sows to Argentina’s herd, which will mean an almost doubling of the commercial meat production; this would also generate exports for US$ 2,500 annually. In the 1st year, 60,000 sows will be added and in the following years, another 80,000 will follow.

 

This move by the Chinese is expedient to mitigate the effect of heavy reduction in pork sales caused by African swine fever (ASF).

 

The proposal includes the development of 25 integrated units of 12,000 sows each, which will require an investment of US$ 151 million for each. It includes balanced feed manufacturing plants, bio-digesters (generation of energy and bio-fertiliser), full cycle breeding, export-licensed slaughterhouses, processing without the use of an effluent lake as well as customs offices.

 

The units are expected to produce 882,000 tonnes of pork meant for the Chinese market, worth US$ 2,500 million. In addition, the entire project will provide a job for 9,500 workers and require 3.6 million tonnes of grain for animal feed.

 

The Foreign Ministry’s report stated: “The dynamics and potential of Argentina’s pork production support its excellent sanitary conditions and abundance of grain availability, which in competitive terms represents between 50% and 75% of production costs.”