January 24, 2025

 

Brazilian soybean shipments to China halted due to failure to meet plant health requirements

 

 

 

China has stopped receiving Brazilian soybean shipments from five firms after cargoes did not meet plant health requirements, according to a statement from the Brazilian government confirming what Reuters had learned from two sources on January 22.

 

The phytosanitary-related suspension comes as Brazil has been bolstering its share of the world's biggest soybean market at the expense of the number two exporter, the United States.

 

The Brazilian agriculture ministry said the "non-conformity" notice it received from China's General Administration of Customs (GACC) refers to five Brazilian companies, which the ministry did not name.

 

One of the sources told Reuters that since January 8, Brazil has suspended shipments to China from Terra Roxa Comercio de Cereais, Olam Brasil and C.Vale Cooperativa Agroindustrial.

 

On January 14, Chinese customs suspended shipments from Cargill Agricola SA and ADM do Brasil, the source added.

 

Olam, Cargill, and ADM together accounted for about 30% of the more than 73 million metric tons of soybeans shipped from Brazil to China in 2024, according to data from shipping company Cargonave Group.

 

However, Brazil's agriculture ministry said only a small volume of soybeans were affected and the impact on the country's exports was minimal.

 

"The companies' units were suspended, but other units of the same companies can continue exporting," said Luis Rua, the Ministry of Agriculture's secretary of commerce and international relations.

 

"When we try to process clearance on customs' website for soybeans shipped by these five companies, we are not able to proceed," said a second source, a trader at a China-based soybean crusher.

 

Countries typically require imported or exported agricultural goods to be inspected to ensure they are free of pests and diseases, in order to protect local food supplies.

 

The Brazilian agriculture ministry said GACC detected the presence of pesticides and pests on a routine inspection of cargos.

 

"The temporary suspension of the companies' units was communicated in advance by GACC to the Brazilian side, demonstrating confidence in the Brazilian inspection system and the robustness of the work carried out by the Brazilian government and exporters," the ministry said.

 

The ministry said Brazil's overall soy exports to China "will not be affected", adding it will provide the needed information for China to lift the temporary suspensions.

 

It was unclear how many cargoes and volumes were affected by the non-conformities, as the Brazilian government did not provide additional details. It also was not clear how long the suspension would last, although traders expected it to be short-term.


- Reuters

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