May 13, 2025

China lifts suspension on five Brazilian soy exporters ahead of Brazil president visit

China, the world's largest soybean buyer, has lifted restrictions for soybean shipments from five firms in Brazil, which were previously suspended over phytosanitary concerns,  Brazilian government confirmed.

Earlier, Reuters reported, citing a source familiar with the matter and Chinese customs data, that China had resumed imports from the Brazilian firms.

"The decision was made after technical understandings between the health authorities of Brazil and China," Brazil's Agriculture Ministry said in a statement.

Brazil is the world's largest soybean producer and exporter, and the top supplier to China as the trade war drives Beijing to diversify away from the US, its second-largest supplier.

The source had said that the resumption of supplies began on April 25, weeks ahead of  planned state visit to China by Brazilian President Luiz Inacio Lula da Silva and at a time when China is trying to marshal a global coalition against the US trade war.

Reuters reported in January that China had suspended imports from related entities of Terra Roxa Comercio de Cereais, Olam Brasil, C.Vale Cooperativa Agroindustrial, Cargill Agricola S.A., and ADM do Brasil. Global giants like Cargill have many subsidiaries licensed to export to China.

Brazil said at the time it intended to raise the issue with Beijing and its agriculture ministry last month provided officials there with information about the suspended firms.

According to a Chinese customs database, all entities with the exact names of the five firms currently hold "normal" registration status.

The database does not specify the resumption date, and Reuters was unable to verify their prior status.

ADM do Brasil parent Archer-Daniels-Midland Co (ADM.N), and Cargill Inc - the privately-held US grain trading giant and parent of Cargill Agricola SA - Terra Roxa Comercio de Cereais and the parent firms of the other two affected companies did not immediately respond to requests for comment.

The General Administration of Customs of the People's Republic of China (GACC) and the Brazilian Embassy also did not respond to requests for comment.

China, which purchases more than 60% of globally traded soybeans, sources over 70% of its imports from Brazil -further eroding US market share.

In 2024, China imported a record 105.03 million metric tonnes of soybeans, with more than 74 million tonnes coming from Brazil. Brazil's bumper harvest is expected to bolster China's soybean imports to a record high in the second quarter.

-      Reuters