China’s COFCO Doubling Soybean Crush Capacity in Brazil

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

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
Market reaction was bearish for corn and soybeans, with analysts noting that abundant supplies amid tepid demand could keep price pressure on agricultural commodities.
Traders are keeping a close eye on China’s soybean purchases as markets track export sales, shipments, and progress toward the ‘magical’ 12 million ton target promised last year.
In a post to social media, Trump said Venezuela will buy American agriculture products and will use the money from oil sales to make it happen.
China continues to buy U.S. soybeans toward its 12 MMT commitment, as analysts cite data gaps, delivery timing questions, and muted market reaction.
Corn export strength remains a key demand anchor, while China’s continued involvement in soybeans and sorghum bears close watching for price direction.
Strong crush demand and rising ethanol production are pressuring feedstocks, as traders monitor storage risks and supply chain uncertainty and await the upcoming January WASDE report.

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:

AFBF Economist Danny Munch breaks down a new Farm Bureau analysis showing that producers now earn less than 6 cents of every food dollar, as farm input costs continue to squeeze margins.
Productivity gains are supporting supply despite limited herd expansion.
Brooks York with AgriSompo addresses how current market conditions and risk management are impacted by volatility in the Middle East, and considerations for farmers in the spring planting season.
Farm CPA Paul Neiffer provided guidance on navigating the R&D tax credit, emphasizing record-keeping, eligibility, and maximizing potential savings as crop margins remain the key pressure point for farmers.
Justin Tupper with the U.S. Cattlemen’s Association joins us to discuss the USDA’s voluntary labeling updates, industry priorities, and the outlook for U.S. cattle producers.
Tight red meat supplies continue supporting livestock markets.