After record exports, Abrapa arrives in China to strengthen partnerships

Until June 06th, the Brazilian Association of Cotton Producers (Abrapa) promotes another international mission, now in China. Among the aims of the Brazilian delegation, made up of nine representatives from Abrapa and the National Association of Cotton Exporters (Anea), is to ensure that the 2023/24 commercial year becomes part of the history of trade between the two countries.

After all, in addition to being the main importer of Brazilian feathers, the Chinese textile industry has shown in practice that there is still a lot of potential for expansion in relations with Brazil. From August 2023 to April 2024, the country imported 1,2 million tons of Brazilian cotton. This volume not only exceeds, but also indicates that the current commercial year could double the historical record of 2020/21 (720,5 thousand tons).

The numbers reflect the commitment of the Brazilian cotton production chain to establish itself as a strategic partner for the Chinese. “Last year, we received a visit from Chinatex in Brazil where we showed that we could expand supply to China with a quality product and on a recurring basis throughout the 12 months of the year. The fruits are being harvested throughout the 2023/24 cycle”, noted Alexandre Schenkel, president of Abrapa.

Chinatex is one of the largest companies in China that sells cotton. “Looking ahead to the coming years, our goal in this mission is to strengthen the partnership with other relevant companies in the sector, such as the China National Cotton Exchange (CNCE) and the China National Cotton Group Corporation (CNCGC)”, said Schenkel.

CNCE is a state-owned company that manages the largest cotton business platform in China, bringing together more than 4 spinning mills that account for 90% of cotton consumption in the country. Since 2021, Abrapa has had a formalized cooperation agreement with CNCE. CNCGC's activities cover different stages of the textile supply chain, ranging from cultivation to trade, including the processing of feathers. One of its functions is to guarantee the supply of cotton to all sectors of the Chinese textile industry.

The agenda in China includes a business dinner with local entrepreneurs on Wednesday (29) and participation during the two days of the "2024 China Cotton Industry Development Summit", the CNCE's annual congress. In addition to networking and parallel business meetings, Abrapa is once again part of the global trends panel. For the third consecutive year, the association's director of International Relations, Marcelo Duarte, will be a speaker alongside representatives from the United States and Australia.

After the CNCE congress, the Brazilian delegation heads to Shanghai and Ningbo for technical visits to spinning mills and textile industries. The agenda ends with participation in the official program of the Sino-Brazilian High Level Commission for Concertation and Cooperation (Cosban), the main forum for regular and official dialogue between Brazil and China. On June 4th, a broad Cosban meeting will take place with the confirmed presence of the Vice President of the Republic and Minister of Development, Industry, Commerce and Services of Brazil, Geraldo Alckmin.

“At the preparatory meeting for Cosban, our main focus was to publicize the Brazilian Cotton Quality Program (PQAB), developed by the Ministry of Agriculture in partnership with us. The acceptance of the PQAB by Chinese bodies will increase the agility in the customs stages of cotton arrival in China”, explained the president of Abrapa.

The mission in China is carried out by Cotton Brazil, an initiative that represents the Brazilian cotton production chain on a global scale. Coordinated by Abrapa, the program is in partnership with the Brazilian Export and Investment Promotion Agency (Apex-Brasil) and Anea.