August 13, 2018


Drive Brazil's soymeal exports to China with joint ventures, says Chinese diplomat


Brazil could drive the export of processed soymeal to China - the country's top buyer of its raw soybeans - with soy-processing joint ventures formed between Chinese and Brazilian companies, Ou Yuhui, Minister-Counselor in charge of political affairs at the Chinese embassy in Brazil, told Reuters.


According to Qu, Chinese companies usually process soybeans in local plants rather acquiring soymeal directly from Brazil. However, companies will go along with whatever option which offers the best profits.

"If a Chinese and Brazilian company together found a joint venture in Brazil to process soybeans, that is a good choice for both sides' profits," he said. Such joint ventures would also reduce the burden of Brazilian logistic costs.

For now, there are no discussions on whether China will provide Brazil a soymeal quota with a lower import tax.

During the interview, Qu downplayed suggestions that China's recent investments in Brazil is a sign of Chinese aggressiveness in "buying" over the country. Addressing the remarks of a right-wing candidate  who will participate in Brazil's upcoming presidential election, Qu said it is hard to understand the root of the candidate's grievances.  

Nevertheless, both nations would continue to cooperate on mutual development regardless the outcome  of the election, Qu commented, adding that the countries' two-way trade is expected to grow 25% to US$110 billion in the next two to three years.

In addition to booming demand for Brazilian soy and corn, Qu pointed out that growing Chinese consumption will boost trade in fruits, chicken, pork and beef. This is even though China had imposed anti-dumping measures on Brazilian chicken in June.

However, he expressed optimism that the matter would be resolved soon.

- Reuters