Companies in Brazil and China could form partnerships to process soybeans in order to increase soybean meal exports to the Chinese market, said an advisor to the Chinese Embassy in Brazil.
Qu Yuhui recently told the Reuters financial news agency that Chinese companies are processing most of the soy they import, notably from Brazil, instead of buying soybean meal, “as their managers choose the most profitable solution.”
“But if a Chinese and a Brazilian company were to form a partnership in Brazil to process soybeans, it would be a good choice with benefits for both sides,” said the advisor, adding that this kind of partnership could ease Brazilian logistics costs.
Last July, Brazilian Agriculture Minister Blairo Maggi said that the government would ask China to allocate a quota for the export of soy derivatives, such as bran and oil, during a bilateral meeting held in the country as part of the BRICS summit meeting in Johannesburg.
“The idea is to request a quota of 5 million tons per year for exports of those two soybean derivatives,” said the minister, who recalled that Brazilian companies sell about 60 million tons of soybeans to China every year.
An article entitled “The Trade War between China and the United States may help Brazil,” on financial news website CLBrief (China Lusophone Brief) details how Brazilian producers can benefit.
Brazil does not export soybean meal, because China applies import duties on the product, Maggi was quoted as saying by Brazilian newspaper Folha de São Paulo.
Figures from the Ministry of Industry, Foreign Trade and Services show that Brazil exported 56.47 million tons of soybeans in the seven-month period from January to July, a year-on-year increase of 10.8% and 10.30 million tons of soybean meal, 17.5% more than in the same period of last year. (macauhub)