Oct 26, 2009
Brazilian Trade Mission Expands Ties With China
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Economic ties between Brazil and China continue to expand. Brazilian businesses are convinced that they can supply China with some of the raw materials they need to continue expanding their economy. An example of this occurred between October 8 and 22 when a trade mission from Brazil (the National Confederation of Industries - Confederacao National da Industria - CIN) spent 14 days in China participating in the 106th Canton Fair, the largest trade fair held in Asia.
Part of the mission included a dozen businessmen from Mato Grosso who are looking to expand beef exports to the Asia nation. The state of Mato Grosso, in addition to being the largest soybean producing state in Brazil, also has the largest cattle herd in Brazil. Beef produced in Mato Grosso is already being exported to many eastern European countries including Russia.
Meat processors in Brazil have made great strides in improving their operations in order to meet the standards set by the importing countries. Brazil is already one of the principal exporters of poultry, pork as well as beef and the exports of all these products are expected to continue increasing.
The biggest hurdle for expanded beef exports from Brazil is the control of foot and mouth disease. A vigorous nationwide campaign to control the disease has eliminated it from most of Brazil, but occasionally the disease reappears in the more remote regions of Brazil or along the border with Paraguay and Bolivia. The most recent outbreak occurred several years ago in Mato Grosso do Sul on ranches that boarded Paraguay. The source of the infection was believed to have been in cattle from Paraguay that were sold in Brazil. The two countries have subsequently worked to coordinate their vaccination campaigns against the disease.
The next trade mission sponsored by CIN is scheduled to go to Havana in early November.