China National Cereals, Oils and Foodstuffs Corp. (COFCO), the largest food group in China and the third biggest one in the world, has recently adjusted sugar business in its subsidiaries and gathered the business together in one company to avoid horizontal competition. Cofco Tunhe (600737.SH) said recently that the parent company, COFCO, planned to commission it to manage sugar business of the China National Sugar & Alcohol Group Corporation under the China Huafu Trade & Development Group Corporation in an effort to remove the horizontal competition inside the food giant…Full Article: Xinhua Finance Aug 2015
- COFCO Group manages China Huafu Trade & Development Group Corporation (i.e. subsidiary).
- In 2012, Tunhe lost between CNY 700 million and CNY 770 million ($112.54 million to US$123.7 million) owing to an oversupply of ketchup on the global market and high sugar prices.
- In June 2005, COFCO restructured Xinjiang Tunhe, a COFCO division that focuses on tomato sauce (e.g. ketchup), beet and sugar production/processing.
- COFCO Group, China’s largest agribusiness enterprise, bears special consideration due to its size and direct government support. The company, though state-owned, has seven separate companies listed on stock exchanges (four in Hong Kong and three in Shenzhen).