Brazilian Agricultural Exports to China Enter Golden Era, Logistics Efficiency Emerges as Key Factor (AI Translation)
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文｜财新 任蕙兰
By Caixin's Ren Huilan
【财新网】“在逆全球化趋势下，世界面临产业链重构。新兴市场中，中国和巴西要肩负历史重任，提升双方合作，维护多边贸易发展方向，展示合作共赢的成果。”在4月25日举行的中国巴西经济峰会上，新开发银行行长、巴西前总统罗塞夫表示。多位与会巴西政府高官认为，随着中美贸易摩擦升温，中国和巴西经贸往来进入黄金时期。
[Caixin Online] "Amid the trend of deglobalization, the world faces a restructuring of global supply chains. In emerging markets, China and Brazil must shoulder a historic responsibility: to strengthen bilateral cooperation, uphold the direction of multilateral trade, and demonstrate the benefits of win-win collaboration," said Dilma Rousseff, President of the New Development Bank and former President of Brazil, at the China-Brazil Economic Summit on April 25. Several senior Brazilian government officials attending the summit shared the view that, as trade tensions between China and the United States intensify, economic and trade relations between China and Brazil are entering a golden era.
自2009年以来，中国已连续15年成为巴西最大贸易伙伴，是巴西首个金额超千亿美元的出口市场。据中国海关总署统计，2024年1月至12月，中巴双边贸易额约1.34万亿元人民币，比上年同期增长4.6%。
Since 2009, China has remained Brazil’s largest trading partner for 15 consecutive years, becoming the first market where Brazil’s exports surpassed $100 billion. According to China’s General Administration of Customs, bilateral trade between China and Brazil totaled approximately 1.34 trillion yuan ($184.6 billion) from January to December 2024, marking a 4.6% increase compared with the same period last year.
近年中巴两国元首互访密切，合作升温。2024年，中国国家主席习近平同巴西总统卢拉共同签署联合声明，宣布携手构建中巴命运共同体。今年5月，巴西总统卢拉计划访问俄罗斯和中国。“中巴将携手打造‘全球南方’国家合作新典范。”罗塞夫表示。
In recent years, China and Brazil have seen frequent reciprocal state visits by their presidents, marking a new high in bilateral cooperation. In 2024, Chinese President Xi Jinping and Brazilian President Luiz Inácio Lula da Silva jointly signed a statement announcing a partnership to build a shared future for the two nations. This May, President Lula plans to visit both Russia and China. “China and Brazil will work together to create a new model of cooperation among ‘Global South’ nations,” said Dilma Rousseff.
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- China is Brazil’s largest trading partner, with 2024 bilateral trade reaching $184.6 billion, a 4.6% increase from the previous year; Brazil supplied 37% of global soybeans in 2023, exporting 2.4 million tons to China recently.
- Chinese firms are increasing investments in Brazil’s agriculture, including $2.7 billion in port upgrades and $1.1 billion in seed business acquisition, boosting logistics efficiency and sustainability efforts.
- Cooperation is expanding beyond soybeans to processed foods and fruits, with Brazilian companies planning local investments in China and seeking greater financial cooperation.
Amid a backdrop of deglobalization and a realignment of international supply chains, China and Brazil have taken on a pivotal role in driving bilateral cooperation and upholding multilateral trade frameworks, according to Dilma Rousseff, President of the New Development Bank and former President of Brazil, at the China-Brazil Economic Summit on April 25. As trade tensions between the United States and China deepen, Brazilian officials emphasize that China-Brazil economic and trade relations are entering a “golden era.” Since 2009, China has consistently been Brazil’s largest trading partner, with bilateral trade reaching about 1.34 trillion yuan ($184.6 billion) from January to December 2024, up 4.6% year-on-year. Chinese and Brazilian presidential visits have intensified, signaling stronger cooperation, and the nations have announced a partnership aiming for a shared future and a new model of 'Global South' cooperation. [para. 1][para. 2][para. 3]
Brazil stands as the world’s largest producer and exporter of soybeans, generating 155 million tons in 2023 (37% of global production). With the ongoing U.S.-China trade war making American agricultural exports less viable, Brazil is stepping in to fulfill China’s growing demand, exemplified by recent sales from Brazil to China totaling at least 2.4 million tons—nearly a third of China's average monthly soybean imports. Officials stress that Brazil’s supply of soybeans, cotton, beef, and chicken is vital for China's food security. To keep market share, Brazil is not only engaging with Chinese companies like COFCO Group to improve logistics but is also investing in infrastructure, including a 300-kilometer highway, a 1,500-kilometer railway, and a 1 billion reais waterway canal in Paraná state. These projects are designed to lower transport costs and further facilitate exports, centered around the critical hub of Paranaguá Port. [para. 4][para. 5][para. 6][para. 7][para. 8][para. 9][para. 10]
Chinese companies are ramping up purchases of Brazilian soybeans, increasingly ensuring these come from “zero-deforestation” sources to meet both client expectations and growing consumer demand for sustainable products. Mengniu Dairy, for instance, sourced 500,000 tons of such soybeans in the first half of the year. Companies maintain traceability and sustainability certification across their supply chains, mindful of the Amazon rainforest’s environmental significance. [para. 11][para. 12][para. 13][para. 14][para. 15]
Beyond trade, Chinese investment in Brazil’s agricultural sector is significant and growing. Companies like COFCO have established an end-to-end presence, investing heavily in upgrades, such as at the Port of Santos. In the past five years, Chinese investment of $2.7 billion has increased the port's soybean loading efficiency by 40% and shortened shipping cycles. COFCO’s upcoming grain terminal—set to open in March 2025—represents a $1.64 billion investment and will become the port’s largest export hub, capable of handling up to 8 million tons per year. [para. 16][para. 17][para. 18][para. 19][para. 20][para. 21]
Seed and biotechnology are other growing areas, with CITIC Group’s Longping High-Tech now holding 21% of Brazil’s corn seed market after acquiring Dow AgroSciences’ local business for $1.1 billion in 2017. Longping operates 11 breeding stations and three processing plants, employing 1,600 full-time and 6,000 seasonal workers in Brazil. Collaboration also extends to science and technology parks, and animal husbandry, where knowledge sharing is enhancing productivity. [para. 22][para. 23][para. 24][para. 25][para. 26][para. 27]
Looking ahead, stakeholders see opportunities to diversify Brazil’s agricultural exports to China, moving beyond basic commodities like soybeans and corn to processed goods and tropical fruits. Brazilian companies are also encouraged to invest in China, aiming for local production. Both sides are urged to deepen financial cooperation, leveraging Chinese financial institutions to empower Brazilian farmers and food processors, further cementing a robust, mutually beneficial agricultural and trade relationship. [para. 28][para. 29][para. 30][para. 31][para. 32]
- COFCO Corporation
- COFCO Corporation has invested in Brazil’s agricultural sector, including building ports, processing plants, and storage facilities, covering the entire value chain from production to export. In the past five years, COFCO invested $2.7 billion to upgrade Brazil’s Santos Port, improving soybean shipping efficiency. By March 2025, its new grain terminal at Santos Port will be operational, becoming its largest export hub globally, with a projected annual throughput of 8 million tons.
- Mengniu Dairy
- Mengniu Dairy has increased its purchases of Brazilian soybeans, aiming to source 500,000 tons of "zero deforestation" soybeans in the first half of the year to supply feed for upstream farms. The company emphasizes sustainable sourcing to avoid deforestation, protect local ecosystems, and ensure traceability, driven by client and consumer demands for green supply chains.
- Yum China
- According to the article, Yum China is mentioned as a major client that requires high sustainability standards in its supply chain. This drives Chinese companies, such as Mengniu Dairy, to purchase "zero-deforestation" soybeans from Brazil, supporting environmentally sustainable sourcing and supply chain traceability to meet client and consumer demand for green, sustainable products.
- Starbucks
- According to the article, Starbucks is mentioned as one of the major clients requiring a sustainable supply chain. This drives companies like Mengniu Dairy to procure "zero-deforestation" soybeans from Brazil for their supply chains, meeting higher sustainability standards demanded by large customers including Starbucks and Yum China.
- CITIC Group
- CITIC Group, through its seed company Longping High-Tech, has been investing in Brazil's agriculture sector. In 2017, they acquired Dow AgroSciences' Brazilian corn seed business for $1.1 billion, including processing plants and research centers. Longping High-Tech now operates 11 breeding stations, 3 processing plants, employs 1,600 staff, and holds 21% of Brazil’s corn seed market. They also lead the China-Brazil Agricultural Science and Technology Industrial Park initiative.
- Longping High-Tech
- Longping High-Tech, a subsidiary of CITIC Group, is a leading Chinese seed company active in Brazil. In 2017, it acquired Dow AgroSciences’ Brazilian corn seed business for $1.1 billion. It now manages 11 breeding stations, 3 seed processing plants, and employs around 1,600 full-time staff and over 6,000 seasonal workers in Brazil, holding a 21% market share in Brazilian corn seeds.
- Dow Chemical Company
- According to the article, Dow AgroSciences, a subsidiary of the American conglomerate Dow Chemical Company, previously operated a corn seed business in Brazil. In 2017, Longping High-Tech and CITIC Agriculture Fund acquired Dow AgroSciences’ Brazilian corn seed business for $1.1 billion, which included seed processing plants, research centers, and genetic resources.
- Dow AgroSciences
- Dow AgroSciences was a subsidiary of U.S. chemical giant Dow Chemical Company (now part of Corteva Agriscience). In 2017, China’s CITIC Group and its seed company, Longping High-Tech, acquired Dow AgroSciences’ Brazil corn seed business for $1.1 billion. The acquisition included seed processing plants, research centers, and Brazil’s corn germplasm resources, significantly strengthening the Chinese companies’ presence in the Brazilian seed industry.
- Shanxi Changrong Agricultural Technology Co., Ltd.
- Shanxi Changrong Agricultural Technology Co., Ltd. is a Chinese company mentioned in the article as engaging in both soybean and feed procurement from Brazil and conducting livestock technology exchanges with local Brazilian companies. The company’s chairman, Yao Jun, highlighted that technical exchanges with Brazil’s advanced livestock industry help Chinese enterprises improve efficiency and reduce costs.
- Marfrig
- Marfrig is Brazil’s second-largest food processing company and holds a controlling stake in BRF, the country’s leading animal protein producer. BRF offers over 800 products and leads the market in chicken, pork, and frozen foods. Marfrig and BRF aim to invest in China by establishing local processing plants to better serve Chinese consumers and tailor products to their preferences.
- BRF
- BRF is Brazil's largest animal protein producer, offering over 800 products and leading the market in chicken, pork, and frozen foods. It is controlled by Marfrig, Brazil's second-largest food processing company. BRF is planning to invest in China, aiming to build local processing plants to better understand and serve Chinese consumer preferences with high-quality products.
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