June 18, 2020

Cargill says Brazil government's insults to China harmful to Brazil's business interests

Paulo Sousa, Cargill Brazil chief executive said Brazil government officials' insults directed at China will be harmful to Brazil's business interests, especially as China is Brazil's major trading partner, Reuters reported.

Sousa said the Brazilian government's aggressive stance towards its biggest client is a key concern.

Brazilian President Jair Bolsonaro has criticised China's economic role in Brazil, while his lawmaker son Eduardo Bolsonaro said China spread COVID-19 around the world. Abraham Weintraub, Brazil's Education Minister said COVID-19 will help China to conquer the world.

Cargill was the biggest soybean and corn exporter between January to May 2020. The company exported 8.1 million tonnes of soybean from Brazil and 342,000 tonnes of corn within the five month period. China is the biggest purchaser of Brazil soybeans.

Sousa said Brazil soybean exports to China in 2020 are above projections, with local food supply chains and export flows unaffected by COVID-19 related disruptions in the country.

Sousa added that Brazilian agribusinesses are more affected by environmental risk compared to the COVID-19 pandemic or the US-China trade war. He said environmental risk could drive away buyers.

-      Reuters