Third Largest Commodity Company in the World Closes Operations in China and Lays Off Employees; Brazil May Gain Significance; Understand

Written by Romário Pereira de Carvalho

Published on 17/04/2025 at 15:53

Updated on 17/04/2025 at 15:55

Imagem representativa. Créditos: Xinhua/Zhou Yi

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ADM Ends Operations In China Due To Trade War And Seeks To Reduce Costs; Brazil Gains Spotlight As Possible New Center Of Agricultural Trade

Archer Daniels Midland (ADM), the third largest agricultural commodity trader in the world, has decided to cease its activities in China. The American company operated in the Asian country since 1995. According to the company’s CEO, the measure is part of a plan to cut between US$ 500 million and US$ 750 million in costs over the next five years.

Trade War Accelerated The Decision

Besides the need to reduce expenses, ADM has been impacted by the intensification of the trade war between the United States and China. Tariffs and regulatory uncertainties have made it difficult for the company to remain in the Chinese market.

The company has already laid off dozens of employees in Shanghai, and the remaining layoffs are expected to occur in the coming days.

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Brazil May Gain Prominence In The Sector

According to Isan Rezende, president of the Federation of Agronomists of Mato Grosso (FEAGRO MT), ADM’s exit represents a transformation in the geopolitics of agricultural trade.

He states that this movement could trigger a chain reaction, with the repositioning of large trading companies and a reconfiguration of logistics flows. “They have already laid off dozens of employees based in Shanghai, and in the coming days the remaining layoffs are expected. Changes in global geopolitics in the marketing of agricultural commodities are underway following the declaration of the tariff war,” he comments.

In this new scenario, Rezende believes that Brazil may gain even more relevance as a reliable food supplier.

With information from AgroLink.

Third Largest Commodity Company in the World Closes Operations in China and Lays Off Employees; Brazil May Gain Significance; Understand

ADM Ends Operations In China Due To Trade War And Seeks To Reduce Costs; Brazil Gains Spotlight As Possible New Center Of Agricultural Trade

Trade War Accelerated The Decision

Brazil May Gain Prominence In The Sector

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Third Largest Commodity Company in the World Closes Operations in China and Lays Off Employees; Brazil May Gain Significance; Understand

ADM Ends Operations In China Due To Trade War And Seeks To Reduce Costs; Brazil Gains Spotlight As Possible New Center Of Agricultural Trade

Trade War Accelerated The Decision

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