Sancor, a co-op that is one of Argentina’s largest producers of dairy products, has been authorized by the government of China to sell baby formula in the Asian country, an Argentine senior official said Monday.
“China authorized Sancor to supply infant dairy formula,” Cabinet chief Jorge Capitanich said during his daily press conference. “There are only 65 international companies authorized.”
In 2012, Sancor announced a partnership with U.S.-based Mead Johnson Nutrition, the global leader in infant nutrition, to produce formula for Argentina and neighboring countries.
The two companies created Nutricion para el Cono Sur S.A., and Sancor produces nutrition formulas sold in Argentina, Uruguay, Paraguay, Bolivia and Chile.
Sancor also manufactures all the Mead Johnson products sold in Brazil.
Capitanich’s announcement underscores the Argentine government’s strategy to boost exports and increase hard currency inflows to replenish the reserves the Central Bank has depleted while defending the peso.
Trade between China and Argentina amounts to roughly $15 billion a year, according to government figures.
Besides a market for Argentine exports, China has been a partner to Buenos Aires for currency swaps and an investor in power plants and an overhaul of the South American country’s railway network.
Date: December 29, 2014