Regarding soybean exports, Brazil will send a delegation to China for consultations

After the Brazilian government's adjustment of soybean inspection regulations affected trade with China, Brazilian Agriculture Minister Favaro announced on the 17th that Brazil will send two officials to China next week to discuss soybean inspection and safety standards.

According to Reuters, Favaro stated in an interview after attending an event in S ã o Paulo that this trip will be led by the Secretary of Trade and International Relations of the Ministry of Agriculture, Rua, and the Secretary of Agricultural Protection, Goulart, to China. Favaro said that Brazil hopes to negotiate conditions that can meet China's inspection requirements while ensuring the operational capacity of its own industries and reducing risks.

Reuters and other media previously cited informed sources as saying that Brazil has strengthened its inspection of soybeans exported to China after China detected pesticide and fungicide residues in Brazilian soybeans multiple times. Favaro also confirmed that Brazil has indeed increased its inspection efforts in response to China's request.

According to public media reports, Sousa, the Latin American director of Cargill, one of the world's four major grain merchants, said on the 11th that at the request of the Chinese government, the Brazilian Ministry of Agriculture has tightened inspections on pests and weeds in soybeans exported to China. This practice makes it difficult for soybean traders to comply, and Cargill has suspended Brazilian soybean exports to China as a result. Subsequently, Favaro said in an interview with CNN Brazil that Cargill's attribution of the current situation to procedural changes was wrong, and that the government would not weaken the country's food and health system due to the "irresponsible" stance of businesses.

At present, it is the peak period of soybean exports in Brazil, and both the Brazilian Vegetable Oil Industry Association and the Brazilian National Grain Exporters Association have expressed concerns about the current situation. The two associations have issued a joint statement stating that they will seek solutions with the government to ensure smooth trade flows.

According to Reuters, as of now, the Brazilian soybean shipment plan has not been significantly affected. The report released by the Brazilian National Association of Grain Exporters on the 17th shows that the country's export volume for this month is expected to be 16.32 million tons, slightly lower than last week's forecast of 16.47 million tons.

Previously, Andr é Nassar, the president of the Brazilian Vegetable Oil Industry Association, stated in an interview with Global Times that Brazil and China have an "interdependent" relationship in soybean trade. China needs Brazil to ensure its food security and supply for its strong processing industry, and Brazil also relies on China as its primary export market. In the future, the Pakistani side hopes to further consolidate and strengthen this relationship.