Coming from China, Cofco celebrates 10 years in Brazil with more than 7 THOUSAND employees and the title of one of the largest agricultural companies in the country; giant will open its own terminal in Santos with an investment of R$1,6 billion

Cofco International, a Chinese agricultural trade giant, is consolidating itself as one of the biggest powers in the sector in Brazil, rivaling the traditional Cargill and Bunge.

But what's really behind this surprising success? Discover how the Chinese state-owned company is revolutionizing the Brazilian agricultural market and what its ambitious plans are for the future.

In a decade, Cofco International has become one of the main forces in agribusiness in Brazil, with more than 7.200 employees and massive investments. The company is about to open its own terminal in the port of Santos, a R$1,6 billion project that promises to transform the country's export logistics.

According to Yunchao Wang, vice president of Cofco International, in interview with Folha de S.Paulo newspaper, the company sees immense potential in Brazil for sustainable growth in grains, oilseeds and sugar. “Our business is growing year after year, and we are prioritizing investments in geographies and markets with significant opportunities,” said Wang.

Billion-dollar investment in the port of Santos

Cofco International arrived in Brazil ten years ago and, in 2014, acquired Noble Agri, accelerating its expansion. Today, it employs more than 7.200 people in Brazil, which represent a large part of its 11 global employees. The company operates in 36 countries and exports to China and almost all continents, including the Americas, Europe and Africa.

In terms of revenue, Cofco is already one of the largest in Brazil. According to the annual ranking by the newspaper Valor, released last year, Cofco is the 18th largest company by revenue in the country. In contrast, Cargill occupies 9th position, and Bunge, 14th. In the previous edition, Cofco was not among the thousand largest companies.

Continuous expansion and diversified operations

The company continues to expand its operations in Brazil, purchasing large volumes of soybeans and corn and cultivating sugar cane.

“We also developed our processing plant in Rondonópolis (MT), which produces 1,3 million tons of soybeans and 350 thousand tons of biodiesel per year,” explained Wang. The plant is connected to the port of Santos by rail, and a pipeline connects nearby biodiesel distributors.

In addition to Santos, Cofco invests in other infrastructures in Brazil. One example is the improvement in the Catanduva (SP) mill, with an investment of R$350 million in a new boiler, and in the transport infrastructure to connect the unit to the port.

Cofco and its commitment to sustainability

Sustainability is also a priority for Cofco. In June, the company's first freighter loaded with “deforestation-free” Brazilian soy arrived at the port of Tianjin, hailed by videos in the Chinese media as “a step towards sustainable practices” as its production “does not cause changes to natural ecosystems ”.

Wang said the company's promise is a "deforestation-free" soy supply chain by next year and "conversion-free" by 2030. Before then, Cofco will seek to adapt to the European Union's deforestation regulation for soy. with a “segregated” supply chain from the origin.

Future perspectives and impact on the market

Guilherme Bastos, coordinator of FGV's Center for Agribusiness Studies and former president of Conab, sees Cofco's effort for deforestation-free soy as “more marketing than effective, at this first moment”, due to the volume they intend to purchase.

However, he confirms that “Cofco has really advanced in terms of its logistics structure and its ability to purchase grains in Brazil”, and highlights that the company has a preferred customer: China.

Bastos recalls that, when the export of corn to China was authorized, Cofco was the first to ship it. “The other traders were still afraid that there would be some kind of complication in the process,” said Bastos.

Cofco's power in the sector became evident recently with the PIS/Cofins issue, when the company managed to significantly influence the market. The provisional measure that removed the exemption, affecting contracts linked to exports, ended up being reversed.

Wang highlighted, at the end of his interview with the newspaper Folha de S.Paulo, the strategic importance of Brazil in Cofco's business. Brazil, the world's largest soybean producer and exporter, “is the origin of most of our commodities, and is the country where we operate our own sugarcane plantations and mills,” he said.

Will Cofco's new investments transform Brazil into the largest agricultural exporter in the world? Leave your opinion in the comments!