China National Cereals, Oils and Foodstuffs Corp - the country’s biggest food trader by sales revenue, on Monday [21 August 2017] confirmed that COFCO International Ltd, one of its subsidiaries, has formed a grain supply partnership with the Illinois-based farm cooperative Growmark Inc. The deal was sealed at Bloomington, Illinois on Aug 15. As part of the deal, they will jointly own and operate a truck, rail and barge terminal in Cahokia, Illinois, on the Mississippi River, the main pipeline that supplies exporters along the US Gulf Coast with corn and soybeans…Full Article: China Daily Aug 2017

Key Point

  • As a result of the August 2017 agreement, Growmark will assist COFCO’s Saint Louis office in sourcing grain. In 2016, COFCO acquired a grain terminal near the Port of Saint Louis due to its 2016 acquisition of Nidera.

ChinaAg Comments

  • In August 2016, COFCO announced it would buy out the remaining outstanding stake in Nidera BV from Cygne BV.
  • In October 2015, a “rogue trader” from Nidera BV (COFCO-owned) lost $200 million in biofuels. According to the Nidera CEO, the financial losses were noticed after global biofuel prices dropped in early 2015.
  • In February 2014, COFCO purchased a 51% stake (estimated at US$1.2 billion) in Nidera, a Dutch grain trading company. As a result, COFCO will be able to source oilseeds, corn, soybeans, and edible oils directly from Brazil, Argentina, and Uruguay.

Hong Kong Trends

Similar Posts by ChinaAg

Spread the word. Share this post!