After meeting with Mapa, largest Chinese buyer intends to expand partnership with Brazil

Minister Carlos Fávaro met with Cofco's board of directors to present investment opportunities in the country

24.03.2023 | 13:44 (UTC -3)
Ministry of Agriculture

The main Chinese investment company in Brazilian agribusiness, Cofco received a delegation from the Ministry of Agriculture and Livestock (Mapa) this Friday morning (24/03) at its headquarters in Beijing. During the meeting, Minister Carlos Fávaro spoke of Brazilian potential for expanding the commercial partnership.

"There is a milestone being established in our mission here in China. In addition to commercial relations, the resumption of fraternal relations, consequently expanded our partnership for the purchase and sale of products", highlighted the minister.

Cofco's operations in Brazil represented the export of 33 million tons of products, totaling US$5,4 million in investments, with the company holding fifth place in corn exports, sixth in soybeans and seventh in sugar, with 7,2 employees in Brazil, which represents 60% of the company's workforce outside China. Furthermore, Cofco is investing around US$300 million in the renovation and expansion of the terminal won at the Port of Santos auction to increase grain transport capacity.

"As everyone already knows, our president Xi Jinping highly values ​​the Brazil - China relationship and also our operations in Brazilian territory", commented the chairman of Cofco, Lyu Jun.

Brazil's ambassador to China, Marcos Galvão recalled that President Lula's visit, preceded by Minister Favaro, is a milestone in the relaunch of relations between the countries. "Last year, Brazil accounted for 22% of everything China bought in the world. This is a great symbol of trust and how our partnership works," he said.

Given the numbers presented, he highlighted that the company intends to achieve, in global agribusiness, the same representation that the Brazilian team has in football.

To achieve this, partnerships with Brazil are essential. In addition to grain sales, Cofco invests in logistics infrastructure in Brazil and has shown interest in expanding the relationship focused on the green, low-carbon economy, proposed by Mapa.

"With all this introduction about cooperation, we are satisfied and hopeful for the future. The scenario, as the minister and the ambassador said, is very important for Cofco, but also for the Brazilians and the Chinese. In the future 15 years, with "Increasing the quality of life of the Chinese people, our cooperation will become stronger. Not only Cofco, but also China needs more partnership with Brazil", said Lyu Jun.

With the focus on the new ABC program of the 23/24 Harvest Plan, which will have differentiated credit lines with more attractive interest rates for producers who invest in socio-environmental practices, Brazil will be able to count on more investments from the Chinese group, including for a private partnership, under the coordination of Mapa, for the recovery of degraded pastures.

Given the proposal presented, Cofco will organize a mission to visit Brazil soon and continue the negotiations.

Also participating in the official meeting were the secretaries of Commerce and International Relations, Roberto Perosa; of Agricultural Defense, Carlos Goulart; special advisor Carlos Ernesto Augustin; the chief of staff, Wilson Taques; the Assistant Secretary for International Relations, Fernando Zelner; the agricultural attaché of the Brazilian Embassy, ​​Fábio Araújo, the diplomat of the agricultural section Ana Prates and the president of the Brazilian Association of Vegetable Oil Industries, André Nassar, in addition to the executive board of Cofco.

LS Tractor February