Conaprole Secures Strategic Agreement with China's Leading Dairy Industry

La Cooperativa Nacional de Productores de Leche (Conaprole) recently inked a landmark agreement with Yili, the preeminent dairy enterprise in China and Asia, strategically aligning the Uruguayan cooperative with one of the global leaders in the dairy sector.

Significance of the Agreement

This collaboration, formalized during the Agro en Punta event, is poised to foster technical exchanges focusing on sustainable practices and quality production. According to Alejandro Pérez Viazzi, Vice President of Conaprole, this pact is a pivotal framework agreement for the exchange of technical expertise and continued advancements in their production quality.

Challenges Overcome

Yili, a long-time partner of Conaprole, had suspended business activities in 2024 due to the Free Trade Agreement between China and New Zealand, which allowed New Zealand dairy products tariff-free access. This challenged Uruguayan competitiveness. Nonetheless, through this new agreement, Conaprole has successfully negotiated the sale of 500 tons of milk powder to Yili.

Future Prospects

During discussions with key figures such as Uruguay's Minister of Livestock, Agriculture, and Fisheries, Fernando Mattos, and Yili's President, Pan Gang, the need for broader commercial agreements was emphasized. Pérez Viazzi expressed aspirations for a Free Trade Agreement with China, or alternatively, the possibility of tariff reductions or quotas that could furnish new market opportunities for Uruguay.