China’s investments in Brazilian infrastructure have helped open the door for increased efficiency and increased acres in production. Dan Bowman, grain merchandiser with Archer Daniels Midland adds trade relations between China and Brazil are favorable.
“China continues to probably be a better trade partner with Brazil than they are with the US in many aspects. I saw numbers recently that they’re talking up to 80 percent of Chinese needs, depending on our tariff situation here out of the US, will come out of Brazil,” says Bowman. “That’s the problem. They continue to grow total production, and China is their favorite partner from a trade perspective.”
According to data from the Foreign Agricultural Service, in fiscal year 2022, $36.4 billion of agricultural products were exported to China.
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