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
China’s reliance on imported soybeans remains entrenched, shaping global demand and trade leverage.
While access to China remains uncertain, U.S. beef exporters are finding resilience and opportunity in other global markets, which could help maintain industry value and expand export opportunities.
ASFMRA’s Dennis Reyman discusses farmer sentiment, land values, and how global and financial pressures are shaping decision-making in the ag land market.
Richard Gupton of the Agricultural Retailers Association discusses the EPA’s new decision on over-the-top Dicamba and what it means for growers this year.
Mike Spier, president and CEO of U.S. Wheat Associates, discusses the new U.S.-Bangladesh trade agreement and its potential benefits for U.S. wheat growers.
Strong corn exports offer support, while soybeans and wheat remain weighed down by ample global supplies, according to the USDA’s latest WASDE report for February.

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:

Reduced driver supply may increase freight costs this season.
Global trade uncertainty could impact long-term export opportunities.
Lower shipping costs favor corn, while soybeans face pressure.
K-State’s Dr. Gregg Ibendahl breaks down the impacts of the Middle East ceasefire on energy markets and input costs, and what farmers should watch in the weeks ahead.
CME Group Executive Director of Ag Research Fred Seamon discusses the recent rise in farmer sentiment highlighted in the March Ag Economy Barometer report.
Faster approvals could speed projects, but may face scrutiny.