Chinese companies plans to invest in Brazilian soy

4 April 2011

Sao Paulo, Brazil, 4 April – China, the second-largest buyer of soy in the world, wants to put an end to intermediation by US multinational companies working in the sector and invest purchasing directly from producers in Mato Grosso and another five states in Brazil, according to the Brazilian press.

Chinese investments are expected in factories for crushing of oil-producing plants, docks for ships, infrastructure, logistics, silos and acquisition of agricultural land.

As well as Mato Grosso, the Chinese plan to invest in Bahia, Santa Catarina, Goiás, Rio Grande do Sul and Tocantins in order to increase their presence in the production chain starting in Brazil. The Mato Grosso area is expected to play a fundamental role in that expansion.

Mato Gross is the largest producer of soy in Brazil and may be the target of investments to acquire land and purchase soy directly.

In the state of Goiás alone expected investments total 12 billion reals, which will be used to recover rundown areas, buy 6 million tons per year and improve facilities to transport the grain.

Another example of China’s intent is underway in the state of Bahia, where 4 billion reals are to be invested in buying soy and setting up industries to process sit, according to newspaper Folha de São Paulo.

Meanwhile, a newspaper from Florianópolis, in the state of Santa Catarina, reported that a mission from the Chinese province of Hebei had been to the region and visited experimental soy, maize and cotton production fields in that state. (macauhub)