Closer ties with the Asian giant have been growing since 2020

The Brazilian Cotton Growers Association (Abrapa) signed a technical-commercial cooperation agreement with Beijing Cotton Outlook Consulting Co., this Monday (8th). The BCO is the trade promotion arm of the China National Cotton Exchange (CNCE), the main entity in the Chinese textile industry. The main aim of the partnership is to expand Brazilian cotton’s presence in the country.

“China is the largest cotton consumer in the world and Brazil has, in recent years, established itself as the second largest exporter in the world whilst maintaining a large potential for the expansion of foreign sales. These are two countries that complement each other well,” pointed out the CNCE’s general director Mr. Yang Baofu.

The numbers reflect the win-win relationship between the two countries. In the last season (2020/21), China was the destination for 30% of Brazilian cotton exports. This enabled Brazil to achieve a 29% market share in China, just behind the United States. “We want all Chinese textile mills and factories to know that we are a large and reliable supplier of quality cotton that is produced sustainably and free from contamination,” emphasized Abrapa president Mr. Júlio Busato.

In the coming months, there will be two great opportunities to reinforce that message. In December, Abrapa and CNCE will hold the Cotton Outlook Forum in Qingdao. In March 2022, Brazilian cotton will be present at the CNCE Gala in Beijing. It is expected that each event will attract over a thousand Chinese mill owners and executives.

Founded in 2004, BCO’s role is to supply data and information, foster new markets, promote events and provide financial services to the Chinese cotton and textile market. It also organizes the main sectorial events for the segment in China. “With the platform we have at BCO, Abrapa will have no trouble promoting Brazilian cotton. CNCE accounts for 85% of the Chinese cotton market,” explained Yang Baofu.

According to him, Chinese businessmen are gradually expanding their knowledge of the Brazilian fiber. “We recognize the improvement in quality and the competitive price of cotton produced in Brazil. Even if the international political situation changes, it is unlikely that the space Brazilian cotton growers have achieved will diminish,” said Mr. Baofu.

Mr Busato highlighted the investment Brazil has made in quality gains and the intention to maintain the long-term partnership with China. “Our priority is to put into practice, in 2022, the official system of voluntary cotton certification with the approval of the Ministry of Agriculture, Livestock and Supply (Mapa), so that we can ensure a market even in difficult years,” he informed.


Brazilian Cotton and the closer ties with China

Brazil has invested in expanding its presence in the Chinese market. The Cotton Brazil program – conceived and developed by Abrapa in partnership with the Brazilian Trade and Investment Promotion Agency (Apex Brasil) and with the support of the National Association of Cotton Exporters (Anea) – promotes Brazilian cotton in the Asian countries, especially China.

In 2020, Abrapa opened an international representation office in Singapore and in December of the same year it held its first event in partnership with the BCO and CNCE, the “Cotton Outlook Forum” in Qindao.

In March 2021, the “Cotton Brazil Outlook” webinar was held which was 100% focused on the Chinese market. As a result, two memoranda of understanding were signed with sectorial entities in the Chinese textile industry: the China Cotton Association (CCA) and the CNCE.

In June, Cotton Brazil took part in the China International Cotton Conference held in Suzhou by the CCA. September was the turn of the “Cotton Brazil 2021 Harvest Roundtable” webinar to present updated figures on the Brazilian harvest to Chinese mills and trading companies. In October, a working meeting with China’s customs service brought together technicians from both countries to exchange information about each country’s cotton classification systems.

The event for the official signing of the agreement between Abrapa and BCO was attended by Brazilian cotton growers and the president of Anea, Miguel Fauss. In addition, Brazil’s agricultural attachés in Beijing, Fábio Coelho Correa de Araújo and Jean Carlo Cury Manfredin also participated.