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China Invests in Biotechnology, AI and Adapted Seeds to Compete with Agro-Business Giants in Brazil and New Markets
The presence of China in Brazilian agribusiness is no longer limited to soy purchases. Now, the Asian country is investing directly in the development of technologies aimed at production within farms. This includes sectors such as biotechnology, transgenics, and the development of new products.
The movement shows that the Chinese want to compete with the large companies already established in Brazil.
Chinese Laboratory Targets Brazilian Market Standards
The Chinese initiative aims to offer alternatives to Brazilian producers. Weicai Yang from the Yazhouwan National Laboratory claims that competition is healthy.
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According to him, providing new options to the market prevents technological dependence on just one other country. The laboratory where Yang works was created by the Chinese government on Hainan Island. The facility focuses on research with soybean, corn, and cotton crops.
On Hainan Island, scientists are developing specific varieties of plants. They aim to meet market demands in China, such as higher oil and protein content.
But the work goes beyond China. The researchers also create varieties adapted to the tropical climate, neighboring countries, and even regions in Africa and Central America.
To facilitate the entry of foreign scientists and visitors, the island has been transformed into a free trade zone. There are no visa requirements and incentives for research are in place.
China’s demand for soy continues to grow and has already reached 120 million tons per year. Of this total, only 20 million are produced domestically. The Chinese government’s goal is to increase this number by 15% by 2030.
According to Yang, tools such as genomic selection, transgenics, and gene editing are essential in this process. He emphasizes that transgenics will continue to play an important role in combating diseases.
Private Companies Are Also Advancing
But it’s not just government research centers that are eyeing Brazil. Private Chinese companies are also seeking opportunities in the market.
DBN, for example, aims to capture 30% of the biotechnology sector in the next ten years. This statement comes from Suping Geng, who is in charge of the company’s operations in South America.
Geng explains that Brazilian soy has lower costs than in other regions. This attracts Chinese interest not only as a buyer but also as a technology supplier.
DBN’s strategy is clear: to offer competitive products, especially in insect control and resistance to herbicides.
The company has already initiated partnerships, such as with the Argentine GDM, and is negotiating other collaborations.
Innovation Using Artificial Intelligence
Innovations also involve the use of artificial intelligence. DBN is developing modified proteins to make plants more resistant to insects.
The work includes studies against stink bugs and boll weevils, which also affect cotton. Another focus of the company is to develop varieties with greater resistance to fungi, such as Asian rust.
DBN’s plan is to build a research and development laboratory in Brazil. With this, the company intends to expand its operations throughout South America.
Other Chinese companies are already operating here. One such example is LongPing, one of the largest seed producers in China. It develops varieties adapted to Brazilian soil and climate.
Genetically Modified Organisms Gain Space in China
The changes promoted by China also affect its domestic market. Until recently, the country did not allow the planting of genetically modified organisms.
Now, this authorization is occurring in some regions, with one condition: the seeds must be developed by Chinese companies.
The general manager of Embrapa Soy, Alexandre Nepomuceno, warns about the advances of countries like China and the United States.
According to him, these nations are developing varieties with high oleic acid content. The resulting oil emits 70% less nitrous oxide, a gas 300 times more polluting than CO2. This makes it more sustainable. Brazil, according to Nepomuceno, is losing this race.
He emphasizes that this oil’s composition is similar to that of olive oil. However, flavor and aroma still differentiate the products.
Eye on Africa and New Markets
Meanwhile, China is already considering the possibility of expanding its soy production to Africa. Weicai Yang states that this is a future plan, but some smaller Chinese companies are already operating on the continent.
At the moment, the primary focus is on improving protein quality, oil quality, and adapting plants to the climate of regions close to China.
Unprecedented Participation in Congress in Brazil
A clear example of Chinese interest in the Brazilian market was the participation in Embrapa’s Soy Congress. For the first time, researchers and businessmen from China were present at the event, held in Campinas (SP), from the 21st to 24th.
Three delegations participated in the congress, demonstrating the advancement of the relationship between the two countries in the agricultural sector. The Chinese presence reinforces that the competition for space in Brazilian soybean biotechnology is just beginning.
With information from Folha de São Paulo.
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