China reopens market for Brazilian beef exports, following a mad cow case scare
China reopened its market for beef exports from Brazil las week, Thursday (3/23). The information was passed on to the Minister of Agriculture, Carlos Fávaro, and to the Brazilian delegation in Beijing by the country’s General Administration of Customs (GACC).
The sales halt came to an end after a month. They had been paralyzed since Brazil imposed a self-embargo following the identification of an atypical BSE case (when the disease manifests itself in an animal spontaneously rather than through herd transmission) of mad cow disease in the state of Pará.
In a post on its website, GACC said, “after due consideration, Brazil’s mad cow disease prevention and control system complies with China’s quarantine and health requirements, and it is decided to allow Brazil to resume export of boneless beef under 30 months of age to China from March 23, 2023.”
In the text, the GACC also points out that it “places great importance” on the voluntary suspension of exports by Brazil after the identification of the case. The Brazilian agribusiness sector supports reevaluating the protocol to avoid new embargoes in cases that do not present risks.
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Woman peeling cassava roots (credit: IITA / Flickr CC BY-NC 2.0)
Overcoming Challenges in Exporting African Dried Cassava Chips to China
September 23, 2024
The booming demand for dried cassava chips in China, driven by the country’s growing needs for bio-ethanol production, food products, and animal feed, presents a golden opportunity for African cassava producers. Each manufacturer in China is willing to order between 50,000 to 100,000 metric tons (MT) of dried cassava chips per month, with contracts stretching between 3 to 5 years. However, several critical challenges have hindered African exporters from fully capitalizing on this opportunity.
Addressing these challenges strategically can unlock Africa's potential in this lucrative market.
1. Price Competitiveness of African Dried Cassava Chips
One of the biggest challenges facing African cassava exporters is the higher cost of their product compared to competitors from Southeast Asia. The average CIF (Cost, Insurance, and Freight) price of African dried cassava chips is around $400 per MT, while Southeast Asian suppliers can offer as low as $320 per MT.
To improve price competitiveness, African cassava producers need to focus on cost-reduction strategies:
Scaling up Production: Many African producers operate on a small scale, which increases costs. By investing in large-scale production facilities or establishing cassava processing cooperatives, they can achieve economies of scale, bringing down the overall cost per ton.
Adopting Modern Processing Technologies: Modern machinery that increases drying efficiency and reduces energy consumption can significantly lower production costs. Government incentives or partnerships with technology providers can help producers modernize their processing operations.
Investing in Renewable Energy for Processing: Reducing energy costs by incorporating renewable energy solutions, such as solar or biomass, for drying and processing facilities can provide long-term cost savings.
2. Navigating the GACC Certification Process
Exporting agricultural products to China requires obtaining certification from the General Administration of Customs China (GACC). The complexity and slow processing time of the GACC certification process are significant bottlenecks for African exporters.
To address this, the following strategies could be employed:
Government-to-Government Cooperation: African governments can engage in bilateral negotiations with Chinese authorities to simplify and fast-track the certification process for African exporters. Signing memorandums of understanding (MOUs) that provide expedited pathways for GACC approvals can reduce delays.
Capacity Building and Training: Exporters often struggle with the technicalities of meeting Chinese regulatory standards. Industry associations and government bodies can provide targeted training programs for cassava producers and exporters to ensure they meet the stringent quality and phytosanitary requirements for GACC certification.
Certification Support Services: Establishing local certification centers or collaborating with GACC-accredited agencies within Africa can ease the burden of exporting by offering support in preparing and processing the required documentation.
3. High Transport Costs from Africa to China
Despite the preferential rates offered by COSCO for shipping between Africa and China, transport costs remain significantly higher than those between Southeast Asia and China. The lengthy sea routes and limited container availability further exacerbate the problem.
To alleviate the high transport costs, African exporters should consider the following:
Consolidated Shipping: Exporters can work together to create shared shipping containers, filling containers with goods from multiple suppliers. This would lower individual shipping costs, making the export process more affordable. Regional exporters' associations could play a key role in facilitating these collaborations.
Strategic Use of Transshipment Routes: Shipping dried cassava chips via transshipment hubs such as Singapore or Dubai could lower direct shipping costs by leveraging economies of scale on frequently traveled shipping lanes.
Investing in Inland Logistics: Transporting fresh cassava from farms to processing sites is often inefficient due to poor infrastructure. Governments should prioritize improving rural roads and transportation systems. Additionally, using low-cost transportation alternatives such as rail or river transport where possible could lower logistics costs from farm to processing sites.
4. Reducing Production Costs for Fresh Cassava Roots
The cost of producing fresh cassava roots is a significant factor in the overall pricing of dried cassava chips. Several factors, including farm productivity, labor costs, and the expense of transporting cassava from farms to processing sites, influence this cost. Here are a few approaches to reduce production costs:
Adopting High-Yield Cassava Varieties: Investing in agricultural research and providing farmers with access to high-yield, drought-resistant cassava varieties can increase cassava production while reducing the per-unit cost of fresh cassava.
Improving Farm-to-Market Infrastructure: Poor Road infrastructure in many cassava-producing regions increases transportation costs. Public investment in rural road networks, including feeder roads that connect farms to processing sites, can drastically reduce the transport cost of fresh cassava.
Strengthening Cooperative Farming Models: Encouraging cooperative farming models where smallholder farmers pool resources can reduce production costs. Cooperatives can buy inputs (fertilizers, seeds) in bulk at discounted prices, share farming equipment, and increase bargaining power for better prices with buyers.
5. Addressing Post-Harvest Losses Through Better Storage Infrastructure
Fresh cassava roots are highly perishable, and the lack of storage infrastructure in many parts of Africa results in significant post-harvest losses. Building proper storage facilities and improving preservation techniques for fresh cassava roots is critical for reducing these losses.
Investing in Cassava Storage Solutions: Solar-powered cold storage, low-cost silos, and improved drying techniques for cassava roots can extend their shelf life and minimize losses before processing. Private investment and public-private partnerships can help develop and deploy these storage technologies in rural areas where cassava is produced.
Supporting Post-Harvest Technology Development: Collaboration with agricultural universities and research centers can result in innovations that improve cassava storage. For instance, adopting fermentation techniques or chemical treatments to delay spoilage can preserve cassava for longer durations.
Conclusion
While the challenges of exporting African dried cassava chips to China are significant, they are not insurmountable. By reducing production and transport costs, navigating the GACC certification process, and investing in modern storage and processing technologies, African cassava producers can increase their competitiveness in the global market. Collaborative efforts between governments, industry stakeholders, and the private sector are key to addressing these challenges and tapping into the enormous demand for cassava in China.
I hope you enjoyed reading this post and learned something new and useful from it. If you did, please share it with your friends and colleagues who might be interested in Agriculture and Agribusiness.
Mr. Kosona Chriv
Chief Revenue Officer (CRO)
Sahel Agri-Sol / Solina Group
Sahel Agri-Sol
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Sahel Agri-Sol, an agribusiness group headquartered in Abidjan, Ivory Coast, with operations spanning West and East Africa, is committed to bringing the finest agricultural products from the Sahel and surrounding regions to the global marketplace.
Our mission is rooted in promoting inclusive economic growth, fostering sustainable development for farming communities, and preserving their cultural and environmental heritage.
By partnering closely with agricultural cooperatives and local producers across the Sahel, West, and East Africa, we guarantee fair compensation for their premium crops, driving prosperity and resilience in rural areas.
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A mobilização para celebrar a data segue até a próxima quarta (29), com arrecadação de donativos e realização de diversas atividades em pontos estratégicos do Estado
Com o objetivo de promover e fomentar a cultura da doação, além de fortalecer as organizações do terceiro setor em todo Brasil, em 2013, foi instituído pela Associação Brasileira de Captadores de Recursos (ABCR) o Dia de Doar. A ação que se espalhou por todo o país, chegou ao nosso Estado em 2019, através do Movimento Doa Sergipe que, no decorrer de 5 anos de atuação, vem realizando um trabalho coletivo que inspira e incentiva a prática da doação, através da cultura da solidariedade.
No Brasil, o Dia de Doar é celebrado na última terça-feira do mês de novembro, com diversas ações solidárias e em parceria com Ongs que trabalham em causas sociais, ambientais ou culturais e encontram no apoio da população uma fonte para continuarem suas importantes jornadas.
Em nosso Estado, a ação acontece através do Movimento Doa Sergipe e neste ano conta com a participação do Gacc Sergipe, Projeto Ações com Amor, Instituto Ágatha, Induman, Casa Santa Zita, Estrela do Mar, A Chave do Futuro e SOS Mediação. Diversas ações serão realizadas simultaneamente em pontos estratégicos como praias, parques, supermercados, shoppings, lojas de conveniência, feira livres, entre outros.
Um dos parceiros da ação é o RioMar Aracaju que, através do Instituto João Carlos Paes Mendonça de Compromisso Social, irá acolher um ponto de coleta de doações, localizado no piso L2, em frente à loja Richard’s, de 27 a 29 de novembro. O público poderá doar produtos como alimentos não perecíveis, material de higiene e limpeza, brinquedos, roupas e calçados, cabelo, ração animal e fralda descartável. Além do RioMar, as doações também poderão ser feitas nos locais indicados no @doasergipe.
Para a organização do Movimento Doa Sergipe, as Ongs necessitam de um olhar mais atento da população durante o ano inteiro, mas a iniciativa de manter uma data para reflexão sobre o tema é muito importante para a mobilização da sociedade. “Ao participar do Dia de Doar, as pessoas têm a oportunidade de fazer parte de algo maior, contribuindo para a construção de uma sociedade mais justa e solidária. É um convite para enxergar além das fronteiras individuais e unir esforços em prol do bem comum”, pontua Ulla Ribeiro, coordenadora do Movimento Doa Sergipe
Confira a programação de atividade em celebração ao Dia de Doar:
Segunda a quarta-feira (27/11 a 29/11): Doa Sergipe no RioMar Aracaju com caixa de coleta para doações.
Terça-feira (28/11): na data em que se celebra o Dia de Doar acontecerão diversas ações em pontos estratégicos de Aracaju e Sergipe, como Hemose, supermercados, lojas Super Tem Petrox, Ceasa e shoppings localizados em Nossa Senhora do Socorro e Itabaiana, além do Pedágio do Bem, que irá acontecer às 16h, em frente ao Gacc, na Av. Desembargador Maynard.
Para ficar por dentro da programação completa, pontos de arrecadação e como doar financeiramente através de chave pix, acesse o @doasergipe.
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