Brazil consolidates as the main supplier of agricultural products to China — MercoPress

Brazil consolidates as China’s main supplier of agricultural products

Tuesday, August 23, 2022 – 10:10 UTC

In 2021, Brazil exported US$41 billion to China (34% of agricultural sales), making Brazil, China’s largest supplier of agricultural products, 20% of Beijing’s imports.

A new deal to facilitate Brazilian agribusiness exports to China has been described by market experts in Sao Paulo as crucial to ushering in the “greatest era of market opening in the last ten years” between the two country.

Agronomist Helen Jacintho said that with the new agreement, China opens its market to products such as soy flour (a long-standing demand from Brazil), concentrated soy protein, corn, peanuts and citrus pulp.

“Excellent news, which solidifies our position as a trusted global food producer,” Jacintho wrote in Forbes magazine.

According to Ricardo Arioli, president of the National Cereals, Fibers and Oilseeds Commission of the CNA (Confederation of Agriculture and Livestock of Brazil), the agreement includes products of great interest to Brazil in terms of production and export capacity, in addition to giving priority to other second-line products, such as maize, sorghum and sesame.

Protocols were discussed at a meeting between officials from China’s agriculture ministry and Brazil’s agriculture ministry to reduce bureaucracy in industry inspection procedures and customs clearance.

Initially, the Brazilian agri-food sector only expected authorization to export these products to China in 2023, after the conclusion of a health protocol: but instead of sending personnel to control the production units in America South, the Chinese authorized officials from Mapa (Brazilian Ministry of Agriculture, Livestock and Supply) to carry out the inspections, greatly facilitating the process.

In 2021, Brazil exported US$41 billion to China (34% of total agricultural sales), making Brazil China’s largest supplier of agricultural products, accounting for around 20% of Beijing’s imports.

However, according to Ligia Dutra, director of international relations of the CNA, Brazil needs new trade agreements and to diversify its agricultural exports to be more competitive in the international market. According to Dutra, Brazil, despite being a major agricultural producer, still has limited access to markets.

“Without trade deals, we ended up focusing our export strategies on commodities, unable to capitalize on other overseas market opportunities that could benefit higher value-added goods,” Dutra explained.

“We must strike new trade agreements to add value to exports and protect our country from difficult international trading conditions. In addition, trade agreements present our country with new opportunities and new challenges, developing new places, guaranteeing the stability and security of farmers, avoiding scenarios such as the closing of markets, the exclusion of factories and other kinds of friction,” says Jacintho.

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