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China’s Appetite For Brazilian Agriculture Goes Beyond Soybean And Diversifies In 10 Years

The diversification of Chinese imports of Brazilian agricultural products is growing rapidly

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The Asian country’s purchases, almost always concentrated in soy, now have good participation also in other agricultural items.

A decade ago, Brazilian meats were of the Chinese radar. By 2018, they were left with almost a fifth of these proteins exported by Brazil.

China’s appetite is so great that the country is already a leader in buying beef and pork. In the case of chicken meat, they approach the Saudi Arabia leader.

Although President Jair Bolsonaro does not look favorably on China’s investment potential in Brazilian companies, this voracity of the Chinese is positive for Brazilian agribusiness.

Cotton also became the object of their desire. In 2008, they bought 3% of the fiber exported by Brazil. Last year, the volume reached 28%.

Cotton growing is growing in Brazil. The country increases productivity and increases the volume produced. The Chinese, who have been intensifying purchases of the Brazilian product, have warned that they are also interested in future cotton production.

China also increases its share of Brazilian pulp. Domestic production grows, and the volume supplied by the country goes up year by year. In 2018, the Chinese accounted for 42% of Brazil’s sales of this product.

Soybeans are in the lead of Brazilian exports, and 82% of the product traded externally went to China last year.

The purchase of soybean oil by the Chinese, however, is much smaller today than it was a decade ago.

In 2008, the Chinese imported the equivalent of US $ 830 million in Brazilian soybean oil. Last year, it was only US $ 163 million (R $ 602 million). With this, Brazil reduces the potential of soybean industrialization.

Brazil gains space, albeit timidly, in sugar and coffee. China has been imposing a high rate on sugar imports.

The result was a decline in product sales to just $ 218 million last year. In 2016, they spent the US $ 824 million.

Brazilian exports of coffee, a product that is beginning to be appreciated by the Chinese, stood at just $ 44 million last year.

Unless the Chinese do with coffee what they do with soybeans – they import the grain for internal processing – Brazilian exports of that beverage will always be restricted.

This is because Brazil has not yet developed coffee industries to export the roasted and ground product. The presence of the traditional international coffee shops will be increasing in the Asian giant.