China wants to buy directly from Brazilian farmers, avoid intermediation

Tuesday, August 16th 2011 - 06:19 UTC

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China, the second-largest buyer of soy in the world wants an end to intermediation by US multinational companies working in the sector and plans to invest purchasing directly from farmers in Mato Grosso and another five states in Brazil, according to the Brazilian press. Read full article

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GeoffWard2
My guess is that the (US) multinational agro-industrials set the benchmark price for sales to China.
If China can cut out this benchmarking it can progressively screw-down the price at which it buys food/feed products from Brasilian farmers.
This is not in Brasil's best economic interest, in spite of the fact that the 'cartel' maximises profits to the 'US' agro-industry.

Would be interested to hear other opinions as this is a new perspective, especially here on Mercopress.
Aug 17th, 2011 - 09:15 am - Link - Report abuse 0
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