China bans a shipment of Brazilian soya beans

The world’s largest soya bean buyer has imposed a ban on a shipment of Brazilian soya beans and suspended five Brazilian facilities operated by major trading companies due to alleged contamination

Contamination with pesticide-treated wheat

As reported by both Brazilian and international media, confirmed by the Brazilian Ministry of Agriculture, Livestock and Supply (MAPA), the General Administration of Customs of China (GACC) has prohibited the import of about 69,200 m/t of soya beans, resulting from a serious violation of Chinese food safety standards.

According to the Chinese agricultural authority, around ten tonnes of wheat treated with a banned pesticide were discovered within the oilseed shipment aboard a Liberian-flagged bulk carrier that arrived in China in late August. The pesticide, deemed toxic and unsuitable for human or animal consumption, constitutes a clear violation of Chinese agricultural regulations, especially since Brazilian wheat is not authorised for export to China. The banned consignment was loaded in mid-July at Santos for discharge at the Chinese port of Huanghua. Following the suspension, the vessel was reportedly diverted to Vietnam.

Temporary suspension of exporting facilities

The GACC also halted imports from five facilities belonging to major commodity traders operating in Brazil, namely Cargill (two units in São Paulo), Louis Dreyfus-LDC (one unit in São Paulo), CHS Agronegócio (one unit in São Paulo) and 3Tentos (1 unit in Rio Grande do Sul).

To lift the suspension, each company must conduct a thorough investigation into the contamination, implement corrective measures under MAPA’s supervision, and demonstrate adequate sanitary controls. Until these criteria are satisfactorily met, China will maintain its export ban on these facilities, as confirmed by the GACC.

To date, neither the GACC nor MAPA has released any public statement on the matter.

Brazil-China trade remains strong

Despite this setback, China is projected to remain the world’s largest importer of soya beans. Brazilian oilseed imports to the Asian country are expected to rise from 108 million metric tons (Mmt) in the 2024/25 season to a record 112 Mmt in the next season. In recent years, Brazil has served as the primary supplier of soya beans to China, accounting for roughly three-quarters of its exports. In 2024, China imported $31.5 billion worth of Brazilian soya beans, representing 73% of Brazil’s total soya bean exports last year, and this share increased to 78% from January to October this year, reaching US$31.6 billion.

The agricultural trade ties between Brazil and China hold the potential for further enhancement. The two countries are in the early stages of discussions to develop a dedicated soya bean supply chain that meets China’s current agricultural standards, as reported in this article. While MAPA assesses the incident in cooperation with the GACC, it emphasises that the temporary ban only affects five out of 2,000 facilities approved for soya bean exports to China. Consequently, while specific facilities are sanctioned, other plants operated by the affected companies remain eligible to export the oilseed to China. Therefore, it is not anticipated that this temporary ban will disrupt the forecast for record soya bean exports in the 2025/26 season.

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