China’s COFCO Doubling Soybean Crush Capacity in Brazil

Global soybean competition is moving deeper into crush capacity, logistics, and value-added product control.

soybeans forming a background texture

apimook - stock.adobe.com

apimook - stock.adobe.com

NASHVILLE, Tenn. (RFD NEWS) — China’s state-owned food company COFCO plans to more than double soybean crushing capacity at its Rondonópolis plant in Brazil, adding another major piece to the global race for soy processing. Dr. Fred Gale says the project shows how Brazil, China, and the United States are all pushing to capture more value through crushed rather than raw bean exports.

The expansion would raise the plant’s capacity from 4,500 metric tons per day to about 10,000. Annual processing capacity would reach 1.35 million metric tons, with output including soybean oil, meal, and about 350,000 metric tons of biodiesel.

The location is important. Rondonópolis sits in Brazil’s west-central soybean region and is connected by rail to Santos port, where COFCO is also expanding shipping capacity. The project aims to improve control over product flows, add export value, and reduce pressure on harvest-season logistics.

Farm-Level Takeaway: Global soybean competition is moving deeper into crush capacity, logistics, and value-added product control.
Tony St. James, RFD News Markets Specialist

Gale notes that the move comes as Brazil’s overall crush capacity continues to rise. At the same time, China already has excess crush capacity and weak margins, which could make additional competition from soy oil and meal harder for existing processors.

The broader takeaway is that soybean competition is shifting beyond production and exports. It is now increasingly a battle over who controls processing, logistics, and supply chain influence.

Related Stories
Farm CPA Paul Neiffer provided insight on updated PLC rate estimates, the role of base acres, and the upcoming enrollment window for ARC and PLC programs.
USDA Farmer Bridge Assistance payments could begin this weekend as producers face tight margins, shifting acreage expectations, cattle herd contraction, and growing pressure for a stronger farm safety net.
Corn export pace remains the bright spot, but stable ethanol export demand remains a critical support for corn markets.
Ag leaders say President Donald Trump’s State of the Union is unlikely to spark major agriculture headlines, but ongoing tariff uncertainty and trade policy remain key concerns, as does the debate around glyphosate and the status of the next Farm Bill.
Expanded global trade access boosts long-term export demand potential for U.S. ag products.
RFD Farm Legal & Tax expert Roger McEowen shares guidance on the 45Z Clean Fuel Production Credit, its impact on renewable energy and agriculture, and what producers should know moving forward.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Seafood producers gain expanded access to USDA support programs.
CoBank Lead Energy Economist Teri Viswanath discusses their analysis of rising energy costs, rural impacts, and the outlook for fuel prices amid ongoing global uncertainty.
Risk management and diversification improve survival odds. Heidi Exline with American Farmland Trust discusses barriers to farmland access and efforts to connect the next generation of producers with retiring farmers.
National Land Realty’s Jeramy Stephens explains how rising input costs and economic uncertainty are impacting the farmland market and what landowners should watch moving forward.
Higher fuel costs are raising grain shipping expenses. RealAg Radio’s Shaun Haney discusses how energy market disruptions are impacting farmers in new ways as the War in Iran continues.
Variety meat demand is helping offset weaker beef exports.