Shanghai Pengxin sets sights on importing more Brazilian soybean
Two acquisitions of Brazilian companies in the past year with more to follow, says chairman, as China’s rising appetite for imported grain continues to soar
Shanghai Pengxin Group, one of China’s most acquisitive agricultural businesses abroad, plans to focus its attention on Brasil, with the aim of securing a future 30 million tonnes of soybean output from the South American country.
Ge Junjie, chairman of Pengxin’s subsidiary Dakang International Food & Agriculture, said the privately owned Shanghai firm has completed two acquisitions of Brazilian companies in the past year and more will follow, as China’s rising appetite for imported grain continues to soar.
“Brasil will be Pengxin’s focus,” he said. “Our goal is to create a synergy between the two markets.”
Founded in 1997 by chairman Jiang Zhaobai, Pengxin has evolved from being a real estate developer into a global buyer of agricultural businesses, and now has intentions of becoming one of the world’s largest grain traders.
Dakang bought a controlling 57 per cent stake in Brazilian grains company Fiagril for US$290 million last year before spending a combined US$253 million on a 54 per cent share in Belagricola, one of the country’s leading agricultural product traders.