Brazil changes inspection rules for soybean exports to China

Brazil’s Agriculture Ministry has revised inspection procedures for soybean shipments destined for China following requests from trading companies, after exporters warned that the previous controls were disrupting shipments to the country — Brazil’s largest buyer of the oilseed.

The change comes as Agriculture Minister Carlos Fávaro is scheduled to meet with representatives of major trading firms on Monday (March 16) to discuss the issue of soybean shipments to the Chinese market.

Under the new rules, samples of soybean cargoes will now be collected by independent shipment inspection companies hired by trading firms, rather than by the ministry’s agricultural inspectors. The change was formalized on Friday (March 13) by Brazil’s International Agricultural Surveillance Service (Vigiagro).

However, 10% of shipments will still have samples collected directly by ministry inspectors. According to the official document, the new procedures take effect immediately for all cargoes whose samples have not yet been collected for analysis.

The adjustment aims to resolve tensions between the government and trading companies, which had warned that the stricter inspection procedures were hindering soybean exports to China. Reporting by Valor showed that soybean trading volumes in Brazil last week were four times lower than the previous week after the Agriculture Ministry modified the inspection process.

Cargill, one of the world’s largest grain traders, had suspended Brazilian soybean export operations to China and halted purchases for that destination after the Brazilian government changed phytosanitary inspection procedures. Cofco International and CHS Agronegócio also reported difficulties with shipments bound for the Chinese market.

The Agriculture Ministry previously said it had identified quarantine weed species not present in China in some shipments. As a result, those cargoes failed to meet the phytosanitary requirements needed for export certification to that destination.

A source in the sector said the ministry’s stricter stance aimed to demonstrate the credibility of Brazil’s sanitary inspection system, particularly in controlling the presence of materials other than soybeans in shipments destined for China.

Source: Globo Rural

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