There are numerous companies and state owned agencies involved in the Brazil-China soybean trade.
However much of this trade is dominated by large, multinational traders who have offices and infrastructure
in both Brazil and China and therefore control both the export and import ends of the trade, as well as the
crushing process. Since 1995 large multinational commodity companies such as Archer Daniels Midland,
Bunge, Cargill, and Louis Dreyfus have been the main players in China’s soybean market and are responsible
for as much as 80% of China’s soybean crushing capacity [24]. These same companies also direct between
60%-80% of grain exports from Brazil. While these few multinational traders control a disproportionate
amount of the Brazilian soybean export market to China, there are many other large and small national
traders involved in exporting soybeans to China, as Table 3 demonstrates.
Two of the large nationally owned players in China’s soybean import and crushing process are Sinograin and
China National Cereals, Oils, and Foodstuffs Import and Export Corporation (COFCO). Sinograin (China
Grain Reserves Corporation), a state-owned enterprise, is one of China’s top soy importers and oilseed
crushing firms. The company also plays a pivotal role in the country’s grain reserves program which seeks
to stockpile the equivalent of 40% of China’s soybean demand [25]. Currently, of the top ten soy crushing
companies in China, four are foreign owned and six are domestic. Of the six domestic operations, three are
state owned and three are privately owned. Together these ten companies are responsible for 57.9% of the
country’s crushing capacity, despite the large number of domestic crushers. Six of these companies have the
capacity to crush more than 10,000 tons daily: Wilmar International Limited, Jiusan Group, Zhongfang
Group, COFCO, Cargill, and Noble Group. However, China is seeking to reduce the dominance of foreignowned crushing plants in China and promote domestic crushers. As of December 2007, foreign investors
were prohibited from building new crushing plants or even acquiring existing ones [26].
There are numerous companies and state owned agencies involved in the Brazil-China soybean trade.
However much of this trade is dominated by large, multinational traders who have offices and infrastructure
in both Brazil and China and therefore control both the export and import ends of the trade, as well as the
crushing process. Since 1995 large multinational commodity companies such as Archer Daniels Midland,
Bunge, Cargill, and Louis Dreyfus have been the main players in China’s soybean market and are responsible
for as much as 80% of China’s soybean crushing capacity [24]. These same companies also direct between
60%-80% of grain exports from Brazil. While these few multinational traders control a disproportionate
amount of the Brazilian soybean export market to China, there are many other large and small national
traders involved in exporting soybeans to China, as Table 3 demonstrates.
Two of the large nationally owned players in China’s soybean import and crushing process are Sinograin and
China National Cereals, Oils, and Foodstuffs Import and Export Corporation (COFCO). Sinograin (China
Grain Reserves Corporation), a state-owned enterprise, is one of China’s top soy importers and oilseed
crushing firms. The company also plays a pivotal role in the country’s grain reserves program which seeks
to stockpile the equivalent of 40% of China’s soybean demand [25]. Currently, of the top ten soy crushing
companies in China, four are foreign owned and six are domestic. Of the six domestic operations, three are
state owned and three are privately owned. Together these ten companies are responsible for 57.9% of the
country’s crushing capacity, despite the large number of domestic crushers. Six of these companies have the
capacity to crush more than 10,000 tons daily: Wilmar International Limited, Jiusan Group, Zhongfang
Group, COFCO, Cargill, and Noble Group. However, China is seeking to reduce the dominance of foreignowned crushing plants in China and promote domestic crushers. As of December 2007, foreign investors
were prohibited from building new crushing plants or even acquiring existing ones [26].
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