The national industry is redirecting its production towards Brazil. The expectation of new agreements with the Asian giant is growing.
Director of Conaprole, Daniel Labordeexplained that dairy imports from China are in decline, something that is reflected in the shipments by Uruguayalthough exports to Brazil they are on the rise.
“We practically we are not selling anything to china”, Laborde said regarding Uruguay’s exports to China on the Rural radio program, Tiempo de Cambio. According to the director of Conaprole, the volume of dairy imported into China fell 6.5% year-on-year in February and a 43% in the first month of the year.
Laborde referred to Free Trade Agreement (FTA) that has Uruguay expectant, and that coincides with the visit of the foreign minister Francisco Bustillo to the Asian country this week, and said that Conaprole will accompany the government on the official visit that it will make in May where representatives of the Ministry of Livestock, Agriculture and Fisheries (MGAP) as the minister fernando mattos.
However, he remarked that the FTA seems very far away and he plans to open up to other markets on the other side of the world such as New Zealand with a zero tariff for its dairy products from 2024. “As the FTA with China appears very distant in time, we will have to find an alternative that allows us to be competitive in the Chinese market,” he explained.
On the other hand, Laborde highlighted that while trade relations with China are in decline, dairy exports to Brazil exceed expectations. The president of Conaprole said that they were able to achieve a change in the shipments that were awarded monthly to the Chinese company Yili, for a higher price than the GDT reference. “We managed to retain the 3,500 tons that we were selling to Yili and direct them towards Brazil to achieve a better price. Today the Chinese market is very quiet for us,” she explained.
Source: Ambito
