China’s share of Brazilian soybean exports remains above 70%

Apr, 02, 2024 Posted by Gabriel Malheiros

Week 202414

The destination of Brazilian soybeans remains a subject of analysis and discussion among experts. The concentration of sales to China, on one hand, is vital for the Brazilian economy as an important trading partner, but on the other hand, it raises concerns due to the excessive dependence on this market. According to data from the Ministry of Development, Industry, Trade, and Services, the Asian giant’s share in Brazilian soybean exports remains solid.

This topic was discussed by Giovani Ferreira in the trade bulletin AgroExport, which addressed Brazil’s need for Chinese demand in key products, with soybeans in focus. The discussion revolved around the perception that Chinese demand might be decreasing and that the country might be gearing up to increase its domestic production, reducing its dependence on imports of Brazilian soybeans.

However, the data presents a different reality. Despite all countries’ desire to strengthen their domestic production, China remains a major buyer of Brazilian soybeans. Analyzing the last five years, focusing on the months of January and February, it was observed that in 2024, Brazil exported 9.46 million tons of soybeans, with an impressive 73% destined for China. This Chinese participation in Brazilian soybean exports has increased compared to previous years, demonstrating a continuity in the Asian country’s interest in the Brazilian product.

This dependence, however, is not recent. Since 2010, China has increased its share in Brazilian soybean exports, rising from 65% to an average of 70.1% in the last five years. Although concentrating exports so much in a single market poses risks, China’s continuous presence as a major buyer is crucial for the expansion and investments in the Brazilian soybean sector, contributing to the consolidation of the country as the largest producer and global exporter of this important grain.

The chart below shows the volume of soybeans exported through Brazilian ports to China every month between January 2020 and December 2023. The data is from DataLiner.

Soybean Exports from Brazil to China | Jan 2020 – Dec 2023 | WTMT

Source: DataLiner (click here to request a demo)

Therefore, while market diversification remains an important goal, China’s presence as the main buyer continues to be a key factor in the growth and development of the soybean sector in Brazil.

Source: Globo Rural

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