April 22, 2011

China and Brazil Expanding Agricultural Ties

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

The opening of the Chinese market to Brazilian pork could lead the way for Brazil to double its meat exports to China. The positive news came as a result of President Rousseff meetings with the Chinese leadership. Upon his return from China, the Brazilian Agricultural Minister, Wagner Rossi, announced that 25 more poultry processors and five more beef processors have been approved for exports to China. With these additional approvals for pork exports to China, pork producers in Brazil feel this could open the door for pork exports to other Asian countries such as Japan and South Korea as well as the United States.

In addition to pork, the Brazilian delegation brought back positive news concerning the export of gelatin, dry milk, corn, citrus, tobacco, and bovine semen and embryos to China as well.

The approval for pork exports came five months after Chinese officials inspected the meat processing facilities in Brazil. Last November, Chinese officials inspected 13 pork processors and the Brazilian government has given them a list of 13 more that are ready for inspection. The Chinese have also approved 25 more of the 41 poultry processing facilities listed by the Brazilian government. The total number of approved poultry facilities now number 50. Five more beef processing facilities were also approved bringing the total to eight facilities.

Chinese inspectors scrutinized tobacco production, processing and transporting systems in the state of Alagoas and Bahia and certified that the states are free of blue mold which is a requirement for tobacco exports to China. Today, China only imports tobacco from the Brazilian state of Rio Grande do Sul.

The Chinese already import a little corn from Brazil, but the Brazilians feel they have set the stage for more corn imports. The importation of citrus from Brazil is expected to be approved this year.

A group of Chinese technicians have been invited to Brazil to learn more about the Brazilian biotechnology and cattle reproduction. Brazil will export to China seaman and embryos and will offer technical assistance for the Chinese in developing their cattle breeds.