The São Paulo Investment and Competitiveness Promotion Agency, Investe SP, believes China will continue to lead global grain imports and reduce meat purchases from abroad in the next decade. The analysis is from their China Agricultural Outlook 2020-2029 report, produced based on a conference held recently in Beijing, which outlined the agricultural prospects for the Asian country, projecting its needs for the next ten years. Over the next ten years, China will remain a major grain importer, with emphasis on soy, corn, wheat, and rice, in addition to sugar and animal products such as beef, pork, and chicken. Other products such as fruits, eggs, dairy products, and fish can also generate opportunities for Brazilian agribusiness. Brazil is China’s main supplier of soybeans. Of the 88.6 million tonnes imported in 2019, around 65% came from Brazil. For the next decade, the Chinese will remain the largest importers of soybeans in the world, with an average annual growth rate close to 1%, which could approach 100 million tonnes imported in 2029. If confirmed, the volume would represent an increase of around 13% in Chinese soy purchases. In the case of corn, Brazil is not yet a significant supplier. Beijing has sought to guarantee its supply from Ukraine. However, given the significant increase in Brazilian production and the current exchange rate levels, it may become more competitive in the Chinese market.
Source: Datamar News/Invest SP/Valor Econômico