A new joint venture between China’s largest food and agricultural company COFCO International and state grain reserves stockpiler Sinograin was due to begin operations in January, Reuters reported from a COFCO statement.
Established in September, the China Enterprise United Grain Reserve Co is part of the country’s bid to improve the efficiency of its grain reserves and increase food security, according to the COFCO statement on its public WeChat account.
The new unit would bring together SinoGrain’s reserve management and COFCO’s warehousing resources and be 51% owned by SinoGrain, the report said.
China is a net agricultural importer and buys corn, soyabeans, wheat and other grains from global markets to stock its state reserves – the largest in the world – according to the report, and food security and self-sufficiency have become driving goals of the government to ensure adequate supplies for its population of 1.4bn.
