On July 1, 2015, Deputy Secretary-General Yin Chengwen met in the Meeting Room of CAAA with NAFASO Asia Area Manager Juan Pablo Cruz. Yin Chengwen chaired the meeting. Director Ailin of Grassland Branch and International Cooperation Department attended the conference and received the visitors.
Yin Chengwen extended his welcome to the visitors and gave a brief introduction of CAAA and Grassland Branch at first. Afterwards, Director Ai Lin gave a brief introduction of the function of Grassland Branch.
Then, Deputy Secretary-General Yin Chengwen introduced to Mr. Juan Pablo the history of CAAA's cooperation with the Spanish side, which shows that CAAA has always valued the communication and cooperation with Spain.
In response, Mr. Juan Pablo introduced NAFASO Group and the difficulties they met since the exportation of alfalfa to China. Juan Pablo was very frank and kind in his words. He talked about the history of Spanish alfalfa exportation, NAFASO's goal of 2015, and the difference of Spanish and American alfalfa. He also expressed the wishes to strengthen communication and face the problems together with CAAA.
Mr. Juan Pablo mentioned that the growth season of Spanish alfalfa is from April to October with 6 cuts each year. In September of 2014, the Chinese government signed a protocol with the Spanish government to admit the importation of alfalfa into China. Since then, the Chinese market has opened its door to the Spanish alfalfa. Due to the GMO elements spotted in some of the imported alfalfa in August and the strike of port worker in the West Coast of America, the importation of alfalfa from Spain has been enlarged further. In November of 2014, the first batch of alfalfa began to send to China. However, because it was already the November, the alfalfa was under quality, just to meet the AQSIQ's standard. Besides, the color of dehydrated alfalfa is not greener as that of suncured alfalfa. It's said that the alfalfa of Spain is under quality, but sold at a price the same as America. Juan Pablo showed great concern to the price issue. He believes that price should go with the quality. It is unfair and will do harm to the market if the Spanish alfalfa follows the price of USA.
To change the Chinese distributors' attitude towards Spanish alfalfa, Juan Pablo enunciated NAFASO's goal in 2015. In 2015, NAFASO is going to export to China 100,000 tons of quality-ensured alfalfa (Color: green, Protein: 18%, RFV: 150-170). At present, the first cut and the second cut of alfalfa of NAFASO in 2015 is above 19.5%.
NAFASO has planted 450 thousand Hectares of alfalfa in Spain with annual production of 450 thousand tons, protein of 18%, which is sufficient to meet the above 2015 goal. To find a solution to the under quality alfalfa after October, NAFASO has actively explored the overseas market. This year, NAFASO has planted 6000 ha of alfalfa in Argentina. The production volume could reach 50,000 tons and the protein can be 22%.
Mr. Juan Pablo continued to make comparison of Spanish alfalfa and US alfalfa. First, the Spanish alfalfa is dehydrated, with average protein content from 20% to 22%, while the US alfalfa is suncured alfalfa with average protein content of 18%. The price of Spanish alfalfa is comparatively lower than US's. Second, the package of Spanish alfalfa is lagging behind the US's, which needs improving on the part of Spain. Third, the inspection and quarantine time of Spanish alfalfa is longer than US's. It takes about three weeks for the Spanish exporter to get the permit.
Yin Chengwen pointed out that there is always a process for a new product to be accepted. The distributer tends to make business with old friends. To change the mentality, quality must be guaranteed while publicity should be paid attention to too. We are ready to work with Spain to improve Chinese alfalfa people's understanding of alfalfa trade and consumption, to bring more benefits to the forage industry. Yin Chengwen also invited Mr. Juan Pablo to attend the International Alfalfa Congress in Bengbu in October.
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Record ID:ICP 05023006