Brazil's soy exports to China are jumping, but profits are hampered by poor infrastructure.
BY RUTH MORRIS
SHANGHAI -- From where Ricardo Arioli stands, overlooking an expanse of leafy soybean plants tucked deep in Brazil’s heartland, China seems a world away.
But China’s breakneck economic growth is evident everywhere-- in the extra fertilizer he’s bought, in the shiny new harvesting machinery he now owns, and in the extra padding of his pocketbook.
“The farmers here are very happy,” says Arioli, who owns 3,000 hectares in Brazil’s Mato Grosso province, mostly dedicated to soybeans. “The demand in China is keeping the prices up, so we are seeing some profits… Prospects are good for farmers.”
China and Brazil have been firing up trade in what economists describe as a largely complementary relationship: China is resource hungry, Brazil is resource rich. And luckily for Arioli, China’s appetite for iron ore and soy is leading the way. As China’s middle class grows, so does its appetite for meat, which means higher demand for protein-packed soybeans to feed chickens and hogs.
Brazil’s 2010/2011 soy crop came in at ...
Keywords: Brazil-China Chamber of Commerce, Chongqing Grain Group