SAO PAULO: While trying to contain an avalanche of imported dairy products, Brazil is negotiating a “productive integration” with Argentina to open new markets, especially in Europe.
Long term funding will be provided both by the Brazilian Development Bank and Banco de la Nación, (Argentina state-owned bank) to approximately 15 different companies in each country, in order to promote new join ventures.
The agreement, which is still under negotiation, will aim to establish quotas, volume and prices for direct combined selling of cheese, powder milk and UHT milk to third world markets.
This association would be valuable to improve Brazilian production quality. Once the agreement is signed (expected by February 2011), Brazil will be allowed to provide Argentina with raw material for fine cheese production.
In the interum the Brazilian Industrial Development Agency (ABDI), is evaluating projects that could be considered ideal to receive such funding.
Source: Valor Econômico
