China increases purchases of Brazilian agribusiness products, now representing 35%

Between July 2023 and July 2024, Brazil exported over US$57.94 billion to China, representing an 8.9% increase compared to the previous 12-month period. 

With this exponential growth, Chinese purchases of Brazilian agribusiness products now account for 35% of the total, making China the primary export destination.

Brazil exported $28.44 billion in agricultural products to China in the first half of 2024. The main products exported to China include soybeans, corn, sugar, beef, chicken, cellulose, cotton, and fresh pork.

As part of this bilateral relationship, Brazil also imported products from the Asian country, such as forest and textiles, with imports totaling approximately $1.18 billion.

On August 15, the two countries marked 50 years of diplomatic relations, which made the Asian country Brazil's leading trading partner. ″It is President Lula's determination that we restore good diplomatic relations with countries. Over these 50 years, we have had many commercial opportunities with China, so much so that it has become our largest partner. Here at MAPA, we are working to achieve more bilateral economic progress,″ emphasized the Minister of Agriculture and Livestock, Carlos Fávaro.

According to the Ministry of Foreign Affairs (MRE), the bilateral relationship is structured within the Sino-Brazilian High-Level Commission for Concertation and Cooperation (COSBAN), created in 2004, elevated to the level of a global strategic partnership in 2012, and this year marks the 20th anniversary of its creation.

″Diplomatic relations between Brazil and China, especially under the leadership of President Lula and Minister Carlos Fávaro, have reached unprecedented levels. From successful diplomacy, we have reaped the benefits of robust trade negotiations, which have consolidated China as our main strategic partner in agribusiness,″ emphasized the Secretary of SCRI, Roberto Perosa.

An important factor for export growth was that in March 2024 alone, China approved 38 new Brazilian meatpacking plants, including 34 slaughterhouses and 4 trading posts, marking the highest approvals. The number of Brazilian companies increased from 106 to 144.

Minister Carlos Fávaro has already undertaken two ministerial missions to China. The most recent event occurred in June of this year, accompanied by the Vice President of the Republic, Geraldo Alckmin.

During the mission, the Federal Government signed an agreement to promote Brazilian coffee in the most prominent Chinese coffee chain, with an estimated purchase of approximately 120,000 tons of coffee. To maintain dialogue and good trade relations, China is currently the only country with two Brazilian agricultural counselors in Beijing.

(Editing by Leonardo Gottems, reporter for AgroPages)

Please contact Christina Xie at christina@agropages.com if you would like to share your company story or advertising in the upcoming 2024 Latin America Focus magazine.