Cargill concerned about Brazil government 'insults' to top trade partner China

SAO PAULO: Cargill's chief executive in Brazil, Paulo Sousa, said on Wednesday that insults by Brazilian government officials aimed at China, the country's main trading partner, are detrimental to Brazil's business interests and "not even very smart."

The aggressive stance against China sometimes taken by members of right-wing President Jair Bolsonaro's government is "a great cause for concern," Sousa said in an interview with a local newspaper streamed live on social media.

Cargill was Brazil's largest shipper of soybeans and corn in the five months through May, according to data from maritime agencies. The US-headquartered grain trader exported 8.1 million tonnes of the oilseeds out of Brazil, and almost 342,000 tonnes of corn in the period.

"We have the role of providing food to the world regardless of color, race, creed or political preference of a country," Sousa said. "So it's not fitting for Brazilian government officials to insult our biggest client. I'd say it's not even very smart."

The Brazilian government did not have an immediate comment.

Sousa, who took over as president of Cargill's Brazil operation last December, said he does not see any immediate risk of an interruption in Brazil's trade with China, however.

He noted Brazilian soybean exports, of which China is the biggest buyer, have been above expectations this year. And even though the COVID-19 pandemic has hit Brazil very hard, it has not disrupted agricultural export flows due to the resilience of local food supply chains.

"The greatest risk for Brazilian agribusiness in terms of competitiveness and acceptance is environmental risk," said Sousa. He added that the issue can be even more pressing than the pandemic and the trade war between the United States and China, because of the potential for driving buyers away.

"It is good to stop talking. It is good to stop being aggressive," Sousa said.