April 17, 2012

Officials from China and Bahia Meet to Discuss Investing in Brazil

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

A delegation of Chinese officials and businessmen are in the city of Salvador, the capital of the state of Bahia in northeastern Brazil, to meet with state officials and discuss opportunities for investments in Brazil. The Chinese group consists of 23 businessmen and 8 government officials and is led by the vice-governor of Shandong Province, Cai Limin. The state of Bahia is already the largest recipient of Chinese investments in Brazil and governor of the state is hopeful that meeting such as this can convert Chinese interest into more actual investments.

Group discussion and workshops have involved agribusiness, energy, infrastructure and construction, mineral extraction, pharmaceuticals, information technology, automobiles, and commerce. These meeting have allowed a frank discussion concerning investment costs, taxes, benefits, and the current market situation.

The state of Bahia is the second largest producer of cotton in Brazil and a significant producer of soybeans as well so the meetings have taken on a special interest in agricultural development including cotton, soybeans, fruits, and sea food. Western Bahia has recently evolved as a primary location for agricultural investments in Brazil due to its abundance of cheap and available land.

One such example of cooperation between the two countries is the Shandong Guanfeng Hi-Tech Seed Co Ltd. The company already has established palm oil production in the state of Para and it is hoping to expand its operations by building a palm oil processing facility in Bahia. The company is also interested in establishing a facility to process natural rubber and to produce wood for a furniture manufacturing facility

The state of Bahia has been attempting to lure Chinese investments into the state for 13 years and the governor of Bahia wants to establish a permanent office in Beijing to facilitate additional investments.