By Li Bingkun, Xie Yang, Ma Zhiyuan, Wu Zhihua, Lin Huanjun　

Date: 2004/12/12

Abstract:

This study is an introduction to the Brazilian condition and advantages in soybean production and trading. The fast expansion of Brazilian soybean output is mainly due to the advantages in low cost in both labor and land, while technically Brazil is just keeping up with the US. Despite the fact that the US subsidizes heavily on soybean, Brazil is potentially capable to surpass the US in soybean production in the future. China has a strong demand on soybean. The point is to take it as an urgent issue in establishing direct trading arrangement between the number one importer and number two exporter of soybean. This is a strategic plan in line with China’s food security, while in the meantime it excludes the intermediate agencies as well as controls by multinational companies in Sino-Brazil trading of soybean.