Brazil Seeks to Export R$10 Billion in Sorghum to China

Brazil is on the verge of opening a new frontier in agribusiness exports: the Chinese sorghum market. Valued at an estimated R$10 billion, China is the world’s largest sorghum importer, consuming around 7 million tonnes annually. An agreement between the two nations is set to pave the way for exports beginning in 2025, following the completion of phytosanitary and logistical requirements, including farm inspections and company certifications.

The states of Goiás, Minas Gerais, Mato Grosso, and Bahia lead Brazil’s sorghum production, currently yielding around 5 million tonnes per harvest. Often grown as a second-crop rotation, sorghum serves as a feedstock for animal feed, ethanol production, and biomass.

“Brazil is the third-largest sorghum producer in the world, but its exports remain minimal. Access to the Chinese market is a unique opportunity for expansion. We could become the world’s largest exporter, directly competing with the United States,” says Daniel Rosa, technical advisor at the Brazilian Corn and Sorghum Producers Association (Abramilho).

To tap into the Chinese market, Brazil must comply with stringent phytosanitary standards. Key among these is the elimination of 11 specific pests, including the fall armyworm (Spodoptera frugiperda) and maize mosaic virus. Additionally, sorghum exports will be limited to processing purposes, requiring rigorous cleaning and storage protocols.

Chinese authorities are scheduled to inspect Brazilian farms in April or May 2025, during the crop’s vegetative stage. The Brazilian Ministry of Agriculture will oversee inspections for each shipment and issue phytosanitary certificates to ensure compliance with Chinese regulations.

Currently, China imports about 50% of its sorghum from the United States. However, the push for supplier diversification creates an opening for Brazilian exports. “Amid ongoing trade tensions between the U.S. and China, Brazilian sorghum could emerge as a viable and strategic alternative for the Asian market,” Rosa explains.

While the opportunities are significant, challenges remain. Brazil’s logistical infrastructure must be strengthened to meet international demand, and producers and exporters will need to invest in compliance with strict sanitary requirements. Moreover, the agreement with China is valid for five years, and its renewal will depend on Brazil’s performance during the initial export phase.

Entering the Chinese market could not only boost Brazil’s sorghum exports but also open doors to other Asian nations where the crop is increasingly viewed as a substitute for corn in various applications. Additionally, increased exports may stimulate domestic sorghum use, particularly in ethanol production, adding value to the supply chain.

With proper planning and investment, Brazil is well-positioned to establish itself as a leading global sorghum supplier, further solidifying its dominance in global agribusiness. The Asian market presents a promising opportunity—but also a challenge—for Brazil to prove its ability to meet the demands of one of the world’s most competitive and exacting markets.

Source: Sou Agro

Original reporting: https://souagro.net/noticia/2024/11/brasil-quer-vender-r-10-bilhoes-de-dolares-em-sorgo-para-a-china/

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