Brazil clear to export soybean meal to China, government confirms

Jul, 29, 2022 Posted by Gabriel Malheiros

Week 202230

China has opened up its market for soybean meal from Brazil. The main buyer of Brazilian grain gave the green light for the soybean sub-product at a meeting of the subcommittee of the China-Brazil High-Level Commission of Agreement and Cooperation (Cosban) at the end of June.

The market opening has already been made official and does not pend on any publication. Therefore, all that is left to do is for the Chinese to approve the businesses qualified for exporting soybean meal, which will happen without an incursion from the Asians but rather on the recommendation of the Brazilian Ministry of Agriculture.

In addition to soybean meal, the Chinese also authorized exports of shelled peanuts, citrus pulp, concentrated soy protein, and fetal bovine serum. Negotiations for Brazilian corn shipments are set for the crop that will be harvested in 2023, as they depend on the monitoring of pests and diseases in crops, on top of the qualification of exporters.

The information was confirmed by the Secretariat of Commerce and International Relations of the Ministry of Agriculture. In May, the Brazilian news outlet Valor reported that the Brazilian government intended to move forward in negotiations for the export of soybean meal, after a meeting between the Vice President of the Republic, Hamilton Mourão, with members of the Brazil-China Business Council (CEBC).

This week, Agriculture Minister Marcos Montes stated that China is interested in purchasing corn from Brazil “right away,” which may be permitted in an unusual manner. Earlier this week, technical teams from both nations met, but no consensus was achieved—the debate centered on animal proteins to align establishments’ audit procedures.

The ministry sees the market opening for soybean meal as a result of the close relationship that has been built in recent months with Chinese authorities.

The governmental agency will call the national productive sector to explain the following steps to start exports. Private players have wanted this opening since a few years back due to the added value of bran compared to grain.

However, the volume potential to be exported will depend on the market demand, as China has a lot of installed capacity to crush the oilseed.

“[The dynamic] will be far more dependent on Chinese demand. They may prefer grains over bran because of their industry. We will decide the supply here. The issue is demand,” stated André Nassar, executive president of the Brazilian Association of Vegetable Oil Industries (Abiove).

Source: Valor Econômico

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