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High-level delegation from Argentina Visited the Rosselkhoznadzor

At the negotiations the Russian delegation was led by Sergey Dankvert, Head of the Rosselkhoznadzor, Chairmen of the Russia-Argentine Inter-Governmental Commission on Trade, Economic, Scientific and Technological Cooperation on the part of Russia, and the Argentine delegation was headed by Carlos Bianco, first Deputy Minister of Foreign Affairs, Chairman of the same Commission on the part of Argentina. As for Argentine party, Débora  Giorgi, Minister of Industry, Carlos Casamiquela, Minister of Agriculture, Livestock and Fisheries; Pablo Anselmo Tettamanti, Argentine Ambassador to Russia as well as representatives of different government agencies and the Embassy took part in the negotiations. The Russian party was represented by the responsible officials of MFA, Ministry of Economic Development and Trade, Ministry of Industry and Trade, RF Ministry of Agriculture and of the Rosselkhoznadzor.

Carlos Bianco informed Sergey Dankvert about the establishment of a special commission in Argentina to explore possible increase of Argentine-Russian trade turnover. The development of bilateral relations was greatly stimulated by the visit of Vladimir Putin, President of Russia, to Argentina. Also they are continuously supported by Cristina Kirchner, President of Argentina. Carlos Bianco provided Sergey Dankvert with a set of materials containing proposals on a significant increase of product export to compensate the volume of food products previously exported from the EU and the USA to Russian market.

Débora Giorgi, Minister of Industry, explained that a wide range of animal and plant products could be exported to Russia in the short term. In particular, she pointed out that Argentina was one of the biggest milk producers with the production amounting in value to 1.7 billion dollars per year. Within a short period of time the country became the largest milk producer in Latin America and the 7th world largest milk powder exporter. Annually Argentina produces 700 thousand tons of poultry taking the 9th place in the world in this category of goods. To add to this, Argentina is ready to export poultry feed, vaccines and genetic materials. Also, it is ready to increase the volume of vine exported to Russia. Currently Argentine vines are exported to 125 world countries. Argentina is the 6th largest exporter of vines and vine materials. Moreover, Argentina exports its high quality pasta to 79 world countries, amounting in value to 300 million dollars per year. Argentine chocolate, biscuits and other confectionery products can also be exported to Russia.

Taking into account the objectives set by Russian President concerning the development of domestic agricultural sector Argentina is ready to export its breeding animals and high quality genetic material – embryos and semen.

Débora  Giorgi made a detailed explanation of possibilities to expand Russian-Argentine cooperation in the sphere of power industry. According to her estimates not less than 400 Argentine enterprises in this sector are interested in Russian technologies and equipment.

Carlos Casamiquela, Minister of Agriculture, Livestock and Fisheries informed Sergey Dankvert about the transformation processes in the agricultural sector of Argentine economy. Currently more than 300 million ha are cultivated which enables to harvest more than 100 million tons of grain. Argentina is the 7th largest soy producer and the 1st largest soybean oil exporter. Argentina is a big exporter of fruits – mainly citrus fruit, apples and pears. Besides, large amount of fish and seafood products can be exported. Export of seafood is estimated at 15 billion dollars per year. Also Argentine exporters are interested in supplying pork, finished meat products and high quality beef. Argentina is interested in obtaining a quota for poultry meat, previously provided to the European Union.

Carlos Casamiquela pointed out that the amount of produced products per year would be enough to feed 400 million people and the population of Argentina is not more than 40 million people.

Sergei Dankvert mentioned that the meeting was of particular importance in the run-up to the IGC meeting scheduled for this September. He marked a substantial coincidence of mutual economic interests and progress in cooperation during the last decade. Russia had always had fairer relationships over the supply of food products from Latin America than from either the US or Europe, because in the former case subsidies did not distort the market. The WTO founding countries took credit for the strong points, in particular for supporting their producers, the countries that joined it later did not have.

Sergey Dankvert pointed out that in the current situation Argentina could start to export their cheese, in particular, to the Russian market. It is noteworthy that the EU used to export 260 thousand tons of cheese to Russia per year and the proportion of high quality cheese was not more than 10 thousand tons. There is also large Russian market demand for milk powder and butter. There was a quota system in Europe which helped to control production and price level. Thus, it was difficult for Argentina and other countries to enter Russian market with their products. Besides, such competition affected Russian milk producers’ interests. Sergey Dankvert indicated that Russian processors were interested in all supplied milk products, including skimmed milk powder, whey powder, milk fat, etc.

There is a great opportunity to export Argentine fish and seafood products to Russia, particularly taking into account the fact that not only traditional fish such as mackerel can be but also exotic fish such as silver hake. Of interest are Argentine shrimps. Argentine food products are in-demand on the Russian market. The export of cheese and cottage cheese over the first half of the previous year accounted for 2.5 thousand tons while in the first half of the current year it has already reached 7 thousand tons. Export of condensed milk and cream tripled and export of butter doubled over the same period of time.

The CU model Veterinary Certificate can be used for export. Supplies of regulated products could increase in the shortest time possible, Sergey Dankvert said. Food safety is ensured by the long-term cooperation between the Rosselkhoznadzor and the Argentine National Food Safety and Quality Service (SENASA) which is familiar with the CU and Russian food safety standards and requirements. A bilateral document on the terms of beef export was prepared for signing. Speaking about the possible increase of poultry meat export to Russia Sergey Dankvert pointed out that it could comprise more than a half of the volume previously exported by the USA. The Rosselkhoznadzor is ready to consider proposals and Argentine guarantees on the expansion of the list of enterprises interested in export of animal products to Russia within the shortest possible time. To start the work SENSA shall send an official letter with its proposals and guarantees to the Rosselkhoznadzor.

Great opportunities are opening up for Argentine companies which will export fruit and vegetables to Russia. It was noteworthy, Sergey Dankvert said, that the EU countries exported more than 1 million tons of apples and pears per year. Taking into account efforts on pesticide residue control in plant products taken by SENSA during the last 5 years, Argentine fruit and vegetables are more preferable in relation to their safety.

The International agricultural exhibition World Food held in September will be an ideal platform for relation establishment and signing long-term contracts on all types of food products.

The parties also discussed the improvement of logistics for large-scale supplies from Argentina to Russia. Special attention was paid to the organization of direct marine supplies. Sergey Dankvert emphasized the efforts made by the Russian party on the improvement of port and warehouse infrastructure.

Also the parties discussed participation of banks and insurance companies in product export from Argentina to Russia.

 

Aug 19, 2014

Categorys: Events , Administration , Video , Import. Export. Transit