Dec 20, 2017

Japanese Officials Toured Brazil looking for Investments

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

Japanese authorities and representatives from the Agriculture & Livestock Industries Corporation recently completed an official visit to the city of Sorriso, Mato Grosso, which is often referred to as the agribusiness capital of Brazil. In addition to Sorriso, the group had already visited the cities of Novo Mutum, Lucas do Rio Verde, and Tapurah in Mato Grosso.

The group was interested in obtaining information about potential investments in Brazilian agriculture and to take that information back to investors in Japan. The head of the Japanese delegation indicated the group wanted to learn more about grain production, as well as cattle and hog production. They were also interested in Brazil's efforts to minimize agriculture's impact on the environment through the development of sustainable agriculture. The information learned by the group will be shared with Japanese producers, consumers, investors, and banks.

The Brazilian Minister of Agriculture extended the invitation to the group to visit Brazil as a way to demonstrate that Brazil has the capacity to meet the demands of the Japanese consumer in both quality and quantity of agricultural products.

It seems like the Japanese delegation was particularly interested in meat production and meat exports. Mato Grosso is the largest beef producing state in Brazil and the group had particular interest in beef processing facilities in the state. After touring Mato Grosso, the group will tour the state of Santa Catarina, which is the center of hog production in Brazil.

Chinese officials were also in Mato Grosso last week discussing soybean production and soybean exports with the Mato Grosso Soybean and Corn Producers Association (Aprosoja) at their headquarters in the city of Cuiaba, which is the capital of Mato Grosso.

In April of 2016, Aprosoja and the Brazilian Association of Vegetable Oil Industries (Abiove) signed a Memorandum of Understanding with the China Soybean Industry Association (CSIA) concerning recognizing Mato Grosso's sustainable soybean production program known as Soja Plus (Soybean Plus). The recent meeting is seen as a follow up to the memorandum.