China Plans To Plant Soy In Brazil - Chinese Offic
SAO PAULO (Dow Jones)--China's soy firms have medium- to long-termplans to start planting soybeans in Brazil, taking advantage of theexcellent growing conditions and low production costs in the center-west,a top Chinese trade official said.In 2003, China imported more than 5 million metric tons of soybeansfrom Brazil, the world's No. 2 producer, and it is looking to guaranteethis supply, said Charles Tang, president of the Sino-Brazilian chamber ofcommerce."It isn't difficult to buy 200,000 or 300,000 hectares to plant," saidTang, while accompanying a Chinese trade mission visiting Brazil.The intention is to integrate the Brazilian and Chinese soy industriesmore closely. In the interim, Chinese firms hope to close long-term supplycontracts with Brazilian cooperatives to build their own warehouses inBrazil, he said.Soy trade relations between the two countries were strained earlierthis year by China's decision to temporarily ban Brazilian soybean importsfrom 23 companies. However, Brazil's industry remains keen to increaseties.Chinese companies are interested in planting in the frontier soyregions of the center-west.