September 6, 2004

Brazil Soy Exporters Lost $747 Million From China Embargo

Brazilian soy exporters have lost $747 million from China's embargo earlier in the year on the soybeans provided by 23 trading companies. The National Cereal Exporters Association (Anec) revealed this figures on Friday.

The embargo, which provoked a trade crisis between the two countries, lasted for a little over a month, ending on June 21.

Anec president Sergio Mendes met in Bras¨ªlia on Friday with China's Cereals Ministry Nie Zenbang.

Anec reached the $747 million figure based on three factors: the resultant drop in international prices to $60/ton based on the difference between the CBT and the port of Paranagua; the 1.5 million tons that was not shipped (a $420 million loss); and additional costs of redirecting the soy that did not go to China. Six ships were turned back at Beijing at a cost of $1.8 million each.