Argentina is known for the quality of its beef, and trade deals are allowing Chinese consumers to enjoy higher grade of exports. This comes in addition to optimism in the sector, after the South American trade bloc Mercosur and the European Union reached a free-trade agreement. Our correspondent Joel Richards reports from Buenos Aires.

Prime cuts of Argentine beef are processed here for export. Over 900 workers cut, prepare and package this beef for export markets like the European Union and Russia, and increasingly, Asia.

This batch is for China, says Marcelo Fiol, who has been manager of this plant for 15 years. Gorina is one of the largest beef exporters in Argentina. Located an hour outside Buenos Aries, the company says they produce a 20 kilogram box of beef every four seconds. It is a family business, run by Carlos Riusech. He says different markets demand different cuts, but that over 60% of Argentina's beef exports go to China.

CARLOS RIUSECH CEO, GORINA "There is a great challenge and opportunity for Argentina. When you look at the type of markets, the highest value is in the European market, the volume is in China. That is the main trend."

Recent agreements with China allow Argentina to diversify and export higher-value cuts of beef. The first shipments were made in June, and in addition to news of the agreement to export pork to China too, Argentina's meat export sector is celebrating some much-needed good news.

JOEL RICHARDS BUENOS AIRES "Argentina's economy is in recession, official figures show that May posted the first growth in economic activity since April of last year. That turnaround is largely down to growth in the agricultural sector."

While agricultural production rose in the country, nearly all of the sectors of commerce and industry shrank- explaining the economic growth. And beef exports are expected to continue to increase. The Argentina Beef Promotion Institute promotes its produce in China, and hopes the two countries can build on the recent agreement to expand exports.

JORGE TORELLI VICE-PRESIDENT, INSTITUTE FOR THE PROMOTION OF ARGENTINE BEEF "The next step would be to work towards a free trade agreement with China, like Australia - which is a country we look to as a model. It is not easy, we have just reached an agreement with the European Union and will take time to implement. With China, the negotiations would take time too. Hopefully, not 20 years like it took with the EU but it will be long."

The sector still faces many challenges but Argentina's exporters tell us they remain patient and optimistic for future deals. Joel Richards, CGTN, Buenos Aires.