Published on : Mar 31, 2015
In recent years, Cofco has used up a couple of billion dollars quietly to purchase Australian cane fields, Brazilian soybean pastures, and French vineyards that helped it in becoming one of the largest food enterprise in the world. At present, Cofco explores deals in the largest exporter of agricultural commodities in the world that is the United States. Invasive in China but little known around the world, Cofco is now gearing up to become the Chinese answer to the United States meat and grains biggest trader Cargill Inc.
On one occasion, the government arm to import food staples at the time when China was deprived and isolated, the state-run firm rode the nation’s rise to a country with middle-class customers. Cofco, the officially approved abbreviation of China National Cereals, Oils and Foodstuffs Corp, now possesses food producing properties in 5 continents. In the previous year, it spent US$2.7 billion to procure, Nidera BV, the Dutch grain trader and 51% of the agriculture unit of the Noble Group, getting the footholds in the bread-basket regions of the central Europe and South America.
The head of the North American unit of Cofco, Mr. Paul Liu stated that they want to get more occupied in the other parts of the world, specifically in the Americas, wherein a lot of the grain is yielded, shipped, and exported to other industries like China.
The deals with Noble Agri Ltd. and Nidera gave Cofco many grain elevators in Milwaukee and Chicago, and Mr. Liu stated that the firm has begun sounding out the U.S. enterprises on potential deals. Such dealings could involve partnerships or acquisitions with peers to protect the U.S. ports and grain terminals, providing Cofco a better access to the biggest source of corn and one of the top soybean producers in the world.