Brazil readies stricter sanitary rules for soybean shipments - Valor International

Agriculture Minister Carlos Fávaro said on Tuesday (17) that Brazil will propose to China the creation of a specific sanitary protocol for soybean trade. The goal is to reduce problems affecting exports of the grain to the Chinese market, a situation that has led companies such as Cargill to announce the suspension of soybean shipments.

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Fávaro made the remarks to journalists after attending the Brazil-Bolivia Business Forum at the headquarters of the Federation of Industries of the State of São Paulo (Fiesp).

“When the Chinese market was opened to Brazilian soybeans, no sanitary protocol was established. Trade has been governed by Chinese and Brazilian legislation and by the commercial relationship,” the minister said.

He added that Chinese authorities currently use the term “substantially free” as a certification of the sanitary condition of products entering the country. However, this does not necessarily mean that shipments are entirely free of substances that could be rejected during Chinese inspections.

Fávaro said he considers China’s concerns legitimate and noted that the Asian country has repeatedly raised complaints with Brazil’s Agriculture Ministry about the presence of weed seeds in soybean cargoes. For this reason, the ministry decided to strengthen inspections. “There is no commercial risk, but there is a sanitary risk. That is why we are responding to a request from the Chinese side,” he said.

Authorities from Brazil and China are scheduled to meet next week to discuss the issue. The Brazilian delegation will be led by the Agriculture Ministry’s Secretary for International Relations, Luis Rua, and the Secretary for Agricultural Defense, Carlos Goulart.

“The proposal is to create a sanitary protocol. Will it solve the problem of seeds in soybean shipments? We can significantly reduce it, be more stringent—companies are willing to carry out rigorous cleaning. Some seeds may still be present, but there are alternatives,” Fávaro said.

He ruled out the possibility that China would restrict or suspend imports of Brazilian soybeans while discussions over the protocol are ongoing. “They have been warning us for some time. First, there is no risk to the quality of Brazilian soybeans. We need to find a solution. It is important that [the sanitary protocol] reaches a good outcome that meets the capacity of the Chinese industry and minimizes sanitary risks as much as possible,” he said.

At least 22 soybean vessels bound for China are currently on hold while a solution to the impasse is sought. Fávaro said authorities are still awaiting the analysis of cargo samples from these shipments.

Two vessels have tested negative and have already been cleared, the minister said. For those still awaiting results, he stressed that the process has top priority but that shipments will not be authorized without sanitary clearance.

According to Fávaro, if a “zero sanitary status” is not confirmed, the ministry will recommend that the company involved redirect the vessel to another destination. “They will only sail if they meet the standards set by China,” he said.