Brazil's soya processing executives are in talks with Chinese government officials over ways to increase soyameal exports to the Asian nation, industry group Abiove said on Monday. China already buys around 80 percent of Brazilian soyabean exports. According to official data, Brazil exported 55 million tonnes of soyabeans to China from January to September, while sales of soyameal - crushed soyabeans used for animal feed - were 209,000 tonnes.
In a video message to participants at a biodiesel conference in Sao Paulo, Abiove's head André Nassar said there was a need to increase exports of meal to help local crushers that are facing rising costs for soyabeans. Nassar is part of a Brazilian delegation accompanying agriculture ministry officials visiting China this week to discuss bilateral trade.
While Brazilian soya farmers have benefited from a trade spat between United States and China, which applied a 25-percent additional tax on US soyabean imports, Brazilian crushers have seen supplies of soyabeans shrink and production costs rise. "It could be a win-win solution. China could diversify their imports by buying more meal from Brazil, something that in turn would help our crushers," said Nassar in the message during the Biodiesel 2018 conference.
Brazilian soyameal exports to China face higher taxes than soyabeans. Abiove said it was negotiating with Chinese government officials for a quota to ship meal to China either tax-free or with lower taxes. In coming years, soya processors are likely to see an uptick in soyameal production as a result of new biodiesel blending guidelines approved last week by the government.
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