China’s Land Purchases in Brazil

The cheap land in Brazil has attracted massive investment from foreign individuals and companies, including Chinese. By October 2010, China’s state-run Chongqing Grain Group Co., Ltd. had developed 800,000 mu (131,790 acres) of soybean plantation farmland in Brazil. It plans to reclaim one million mu (164,736 acres) more farmland, for a total investment of over 5 billion Chinese yuan (US$771 million), making Brazil China’s largest overseas soybean oil production base. In addition, Zhejiang Province’s Fudi Agricultural Co., Ltd. has invested 200 million yuan (US$31 million) in the purchase of 16,800 hectare of Brazilian land for a soybean plantation. Meanwhile, China National Cereals, Oils and Foodstuffs Corporation (COFCO), China’s largest state-owned food giant, has also shown interest.