Brazil and China collaborate on sustainable soybean supply chain
Sustainability measures under negotiation are expected to focus on land expansion monitoring, low-carbon agriculture policies, renewable energy use, and restrictions on certain pesticides
BRASILIA, June 26, 2025 –– Brazil and the People’s Republic of China [PRC] are exploring a groundbreaking partnership to develop a dedicated soybean supply chain tailored to meet Chinese sustainability and quality standards.
Dubbed the “Soy China” initiative, this model aims to replicate the success of Brazil’s “Boi China” beef certification programme, which has boosted exports by adhering to strict Chinese import requirements.
The initiative seeks to align Brazilian soybean production with environmental, social, and traceability criteria defined by the PRC.
Sustainability measures under negotiation are expected to focus on land expansion monitoring, low-carbon agriculture policies, renewable energy use, and restrictions on certain pesticides.
‘These standards may mirror the European Union Deforestation Regulation [EUDR], albeit with less stringent policies,’’ say the United States Department of Agriculture [USDA], and Global Agricultural Information Network [GAIN] in report titled Assessment of Soy China Initiative in Brazil, published three days ago.
The EUDR is a European Union regulation that aims to prevent the import of products linked to deforestation by requiring companies to prove goods are deforestation-free and legally produced. In Brazil, this includes commodities like soy, beef, coffee, and wood, which must be traceable to land that has not been deforested after December 31, 2020.
China, which imported 71 percent of its soybeans from Brazil in 2024, could further increase its reliance on Brazilian soybeans, potentially reducing imports from other major suppliers like the United States. This shift may challenge U.S. agricultural exports, as Brazil solidifies its position as the top soybean supplier to the PRC.
The “Soy China” initiative also promises economic and environmental benefits for Brazil. Chinese investments are expected to support the recovery of degraded lands, enhancing sustainability and productivity.
However, Brazilian farmers may face transitional hurdles, including higher production costs and the need to adopt new cultivation methods.
As global agricultural trade dynamics evolve, the “Soy China” initiative could reshape Brazil’s export strategy and deepen its alignment with Chinese agricultural demands, while posing strategic challenges for competing nations like the United States.
“The Soy China initiative signals a deeper alignment of Brazil’s export strategy with Chinese agricultural demands.”
https://thecooperator.news/masindi-farmers-form-association-to-promote-soybean-cultivation/
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