Argentina gets China OK for wheat exports for first time

Chinese customs authorities have included Argentine companies in its list of those approved to export wheat to China for the first time, a statement by the Argentine government said on Friday, potentially opening up sales to the huge Asian market.

Argentina is a major wheat producer and exporter globally, though its previous harvest was battered by a drought, leaving few stocks for export. The government estimates wheat exports at 3 million metric tons worth $1 billion in a drought-hit 2023.

The current 2023/24 wheat harvest, however, was far stronger, ending at over 15 million tons, the Buenos Aires grains exchange said this week. Main cash crops soy and corn are also seeing a major revival due to better rains this season.

The South American country’s government said in an “important step”, Chinese customs had included Argentine firms in its quarantine registrations system for those allowed to export meat and vegetable products to China.

“In this way, the market for the export of Argentine wheat to the Asian giant is operational for the first time,” it said.

The move comes after the two sides agreed on export protocols for products including wheat in October. Argentina’s current main wheat export destination is Brazil.

China, the world’s top wheat producer and consumer, saw its 2023 crop suffer quality issues after heavy rain hit key growing areas just ahead of the harvest. Analysts have said they believe China needs to import milling wheat to blend with its rain-hit domestic crop.

Tags: China, wheat, Argentina