January 31, 2025

China's ban of Brazilian soybean exports from five companies to last two months

China's suspension of Brazilian soybean exports from five companies earlier this month — after cargoes did not meet plant health requirements — will last two months, a top Brazilian agriculture official told Reuters on January 24.

China suspended imports from the five companies on January 8 and January 14 after cargoes failed to meet Chinese import standards. The five suspended units are part of operations that accounted for more than 30% of the more than 73 million metric tons of soybeans that Brazil exported to China in 2024.

However, other units of the same companies have not been suspended.

Brazil's agriculture ministry is investigating the issue and would send clarifications to China in due course, Luis Rua, the agriculture ministry's commerce and international relations secretary, told Reuters.

Rua was unaware of the number of cargoes involved, or their origin, but said only a small volume was involved. The five units were only a fraction of the 1,700 Brazilian outfits authorised to export soybeans to China, he said.

The companies affected by the suspensions had a meeting with government officials in Brasilia on January 23, according to Anec, a Brazilian association representing global grain traders.

The five companies with units suspended were global merchants Cargill, ADM, and Olam, and Brazilian outfits C.Vale and Terra Roxa. Cargill.

The temporary suspension affected only one of C.Vale's units, a C.Vale spokesman said, adding that other units could continue exporting. The soybeans were likely exported from the port of Paranagua given the shippers involved, one grain trader said.

- Reuters