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Chinese government should cancel corn reserves in 2010, ag business executive advises
March 13, 2009
BEIJING -- A senior manager with COFCO, China's largest supplier in agribusiness, suggested Chinese government cancel state reserves for soybean and corn, and grant subsidies directly to farmers instead next year.
Yue Guojun, general manager of China Oil and Food Corporation (COFCO), predicts that China's corn consumption and demand will drop this year, causing corn stocks to rise over last year.
China should allow processing enterprises to join corn reserves to relieve pressure from selling reserved crops and provide opportunities for these companies to enjoy subsidies, Yue said on the sidelines of the annual parliamentary session.
Since last year, China has raised corn reserves in four rounds to absorb 40 million tons, accounting for about 24 percent of the total domestic output last year. All the corn reserve plans were carried out by COFCO.
COFCO, the country's largest oil and food importer and exporter, boasts the biggest deep processing capacity for corn in China. Its listed subsidiaries include China Foods (0506.HK), China Agri-industries Holdings (0606.HK), COFCO Real Estate (000031.SZ) and COFCO Tunhe (600737.SH). Enditem
Source: Xinhua Economic News, March 11, 2009
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