How changes in China can affect Brazil’s economy and agribusiness sector

China’s double-digit growth may be ending. At least that is what data from the Ministry of Agriculture and Rural Affairs of China (MARA) and the Chinese Academy of Agribusiness Sciences (CAAS) indicate. The data point to a growth that drop to half of what was registered in the last decades, with an average of 4.9% until 2030.

The numbers raise doubts about China’s ability to absorb Brazilian production at the same rate as today. The Asian giant, Brazil’s biggest trading partner, bought 32.3% of everything the country exported in 2020.

See below the volume of cargo exported to China. Data is from DataLiner:

Brazilian Exports to China | Jan 2018 to Jul 2021 | WTMT

Source: DataLiner (To request a DataLiner demo click here)

Experts interviewed by CNN Brasil Business do not believe that China will reduce its demand for imported products. The main concern for Brazilian producers should be increased competition for a piece of the Chinese market.

Some products are likely to face competition from China’s domestic production, especially pork. Soy, the most sold product today from Brazil to China, may also face competition.

Source: CNN Brazil

To read the full original article, visit the link:

https://www.cnnbrasil.com.br/business/como-mudancas-na-china-podem-afetar-o-agronegocio-e-a-economia-do-brasil/

Sharing is caring!