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To sell to China you have to produce in China
Biogénesis Bagó, Sebastián Perretta, a specialist who worked on the installation of an anti-foot vaccines plant in the laboratory in Shaanxi province, said that in order to “sell to China it is necessary to produce in China” and augured a very Important for the exports of meat to the Asian country and the development of cattle breeding.
In an interview with Télam, Perretta gave details of the plant they set up in China in an alliance with local firm Hile Biotechnology and the strategy developed by the Argentine capital firm.
“China is the world’s leading producer of pigs and has a high consumption, but that production has problems due to foot-and-mouth disease, which even led to productivity problems.That point was the need, in 2012, to add quality technology And from the global recognition that has Biogenesis was that they came to look for us, “said the director.
“So, now that the Shaanxi plant is producing, we have become the first biotechnology company in Latin America to produce in China,” Perretta said.
Speaking of China’s difficulties in importing value-added products, one of Argentina’s goals in the Asian country, Perreta said that “to sell to China, we have to produce there.”
“Having a Chinese partner opens doors for you and gives you everything, if you are not associated there, it is impossible. Our case with our partner Hile is very similar to what happened with other very different sectors, like when they went to look for Audi in The 1990s to produce higher quality cars, “he added.
Other firms such as Techint have plants in the Asian country where products from other countries end, or the Arcor food company, which has commercial offices.
Perretta said that the intention of Biogenesis Bagó is not to stay only in China and that one of its objectives is to spread to the Southeast Asian market.
“We have a very important market here, but we want to take advantage of the prestige that we have been accumulating to go to Southeast Asia with everything,” he said.
“From China and our experience with Taiwan, whom we have been selling since 1997, we are already looking at the markets of Thailand, Vietnam and Korea. We can sell from our plant in Garín – in the province of Buenos Aires – or have another model Business, with technology transfer, “he said.
Perretta said the options they handle are to partner with other local companies, export directly or do technology transfer.
“Many times, because they are vaccines, countries want to have sovereignty in production and that makes us think about another business model,” he said.
The Biogenesis Bagó plant in China produces foot-and-mouth vaccines for pigs. The importance of entrepreneurship is that the Asian country is the main world market in pork and that it grows strong in the development of cattle.
“China is producing more and more cattle, but demand is gaining, that is a phenomenon that we look at very carefully because it is a business that can be very important for us,” Perretta said.
For the manager of Biogénesis Bagó, the “Chinese boom for beef was seen on the tour of President Mauricio Macri, where there was a lot of interest in increasing meat sales.”
The plant installed in Shaanxi province involved an investment of more than US $ 60 million and arose from a 40% alliance by Biogenesis Bagó and 60% by China Hile. It has a production capacity of 400 million annual doses, which implies a 20 percent of the demand of FMD vaccine of the Asian country.
In addition, Biogénesis Bagó is considered as a leading company worldwide in the production and development of vaccines against foot-and-mouth disease, has two plants in Argentina and one in Brazil, exports to several countries in Latin America and is an antigen bank in the United States and Canada .
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