China reportedly negotiating purchase of livestock worth €1B annually from Romania; under contract, Romania would annually deliver 3 million sheep, 3 million pigs, 500,000 cattle
November 25, 2013
– China is negotiating the purchase of livestock worth EUR 1bn per year from Romania, Ziarul Financiar daily reported. Under the contract, Romania would deliver 3mn sheep, 3mn pigs and 0.5mn cattle on an annual basis.
The contract is being arranged during the China-Central and Eastern European Countries Summit that takes place in Romania's capital Bucharest on November 26-29.
For comparison, Romania's total annual agri-food exports amount to EUR 4.5bn, the daily comments.
Romania could thus export its animal production at far better prices that it has to accept currently, the state secretary at the agriculture ministry, Achim Irimescu, explained. China is also interested in purchasing grains, he added. The whole deal has however to be somehow guaranteed by the Romanian state under a sort of public-private partnership, he further explained.
China is for instance financing the development of two pig farms worth EUR 25mn each in Romania, which will further export its output to China, the ministry's official explained. Chinese company Shanghui Group had already took over US Smithfield that operates the largest Romanian pig farms with a production of 0.8mn pigs per year.
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