A freight train fully loaded with Russian wheat arrived at Manzhouli land port in north China’s Inner Mongolia Autonomous Region Saturday [8 April 2017]. This is the first bulk shipment of Russian wheat to enter China via the land port after the two countries reached deals on quarantine inspection requirements for exporting Russian wheat, corn, rice and soybean to China in December 2015…Full Article: ECNS.cn Apr 2017

Key Point

  • COFCO Group, a state-own food conglomerate, was the Chinese importer of the Russian wheat. The President of COFCO noted that his company plans to import 1 million MTs to 2 million MTs of Russian wheat annually, though imports may rise to 4 million MTs to 5 million MTs.

ChinaAg Comments

  • In March 2017, Russia’s Agriculture Minister stated that his country plans to export 1.5 million MTs worth of agricultural products to China in 2018. The bulk of Russian exports will be grains (barley, other cereals), oilseeds (soybeans, canola, flaxseed), and sunflower oil.
  • In December 2016, freight train services between Xi’an, Shaanxi Province, and Moscow began operations. The Xi’an-Moscow freight train service will take 11 days and follows the previously opened routes of Xi’an-Warsaw and Xi’an-Hamburg.
  • In October 2016, two new Russian Far East trade corridors with the Chinese provinces of Jilin and Heilongjiang were under construction. The Pogranichny-Suifenhe border checkpoint in China’s Heilongjiang Province and Russia’s Primorsky Krai is a major overland trade hub. However, Russia is constructing two international transportation corridors (Primorye 1 and Primorye 2) that will link up with the Chinese provinces of Heilongjiang and Jilin. Both transportation corridors will be administrated by the city of Vladivostok.
  • In early September 2016, during the G20 Summit in Hangzhou, Russia’s President Vladimir Putin gave Xi Jinping Russian ice cream as a gift. The majority of Russian ice cream imports enter China via the Quarantine Bureau of Manzhouli, northeastern China.
  • In March 2016, China’s Minister of Agriculture encouraged Chinese companies should invest in the agriculture sector of Russia’s Far East.
  • In December 2015, China and Russia signed quarantine inspection agreements on Russian exports of wheat, corn, rice, and soybeans.
  • In October 2015, China’s Food Conglomerate, COFCO Group, announced plans to construct two warehouses (100,000 MT capacity each) in Russia’s Far East. COFCO was interested in constructing the warehouses in Russia’s Mikhailovsky priority development territory located in southern Primorsky Krai.
  • In June 2015, China announced it would start the construction of a joint Chinese-Russian livestock agricultural complex in Heilongjiang province. The agricultural complex will developed by China’s Zhongding Dairy Farming and Russia’s Severny Bur, with approximately 100,000 ha of Russian and Chinese land to be used to grow animal feed. Russia’s Primorsky Krai borders China’s Heilongjiang province.
  • In June 2015, a Zhejiang-based company was granted permission to lease 115,000 hectares of uncultivated land in Russia’s Transbaikal region (i.e. Zabaykalsky Krai). The Chinese company plans to use the land to grow vegetables, wheat, and other agricultural commodities, as well as raise livestock.
  • In June 2012, the Russia-China Investment Fund (RCIF) was established by the Russian Direct Investment Fund (RDIF) and China Investment Corporation (CIC). The private equity fund initially received US$2 billion from the RDIF and CIC (equal share). The RCIF was tapped to invest 70% of its funds in Russia and CIS countries (i.e. Central Asia), while the remaining 30% would be invested in China.
  • Founded in 2011 and headquartered in Zhangzhou, Fujian Province, the Sino-Europe Agricultural Development Center is an agricultural research institution formed in part by Wageningen University & Research Center (the Netherlands), International Association of Horticultural Producers (the United Kingdom), and the Sino-Europe Technological Promotion Center (SETPC).
  • In 2004, the Sino-Russian agricultural joint venture “Armada” was established. The agricultural JV covered an area of 40,000 hectares in Russia’s Primorsky Krai region.

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