Sao Paulo, Brazil, 23 April – Chinese state company Chongqing Grain group plans to invest US$300 million in the purchase of 100,000 hectares of land in the Brazilian state of Bahia in order to produce soy for the Brazilian and Chinese market, the Brazilian press reported.
The project is funded by the China Development Bank, which will provide 60 percent of the total, with the remainder paid out by the company itself, which is linked to the Chongqing municipality.
The Brazilian press reported that company representatives were in Brazil to find local partners, with the aim of finalising the acquisition of the land by next July and start the process that will lead to production of 250,000 tons of soy per year.
A report published recently in the Chongqing News newspaper, linked to the municipal government, said that the cultivated land could at a further stage increase to 200,000 hectares, with total investment of US$842 million.
Interest from Chinese companies to buy land to plant soy in Brazil has increased over the last few months, especially after the approval by the Commission of Constitution and Justice of the Chamber of Parliamentary Members of a project that limited the size of plots that can be bought by foreigners in Amazônia Legal – an area that covers the states of Amazonas, Acre, Rondônia, Roraima, Mato Grosso, Pará, Amapá, Tocantins and part of Maranhão – to 1,140 hectares. (macauhub)