context: As a state-owned enterprise, COFCO serves as a key instrument for implementing the PRC's food security policies and expanding its global ag footprint. The company's increasing engagement with Belt and Road Initiative countries signifies a strategic shift in the PRC's approach to securing food supplies and gaining influence over global ag supply chains.
During the 7th China International Import Expo (CIIE), COFCO Group signed procurement agreements with suppliers from around the world, purchasing high-quality ag products worth over US$10 bn. Compared to previous years, the sources of these imports have become more diversified, and the import structure has continued to optimise.
In addition to maintaining imports from traditional grain-exporting countries, COFCO has intensified its efforts to import from countries such as Kazakhstan, Bulgaria and Argentina, which are part of the BRI (Belt and Road Initiative). Over one-third of the orders signed this year come from BRI countries, covering a wide range of products including wheat and rice.
COFCO's imports of wheat from Kazakhstan have increased by about 20 percent compared to previous years. This agreement will enable COFCO to further tap into Kazakhstan's wheat import potential. Kazakhstan, being the largest grain producer in Central Asia, is known for its high-gluten and low-gluten wheat varieties. Importing wheat from Kazakhstan not only provides the domestic market with a richer selection of high-quality food ingredients but also enhances the diversification of ag product imports.
COFCO also placed special emphasis on buying cotton and other ag products from the least developed African countries such as Benin and Burkina Faso. Meanwhile, the group is increasing its investment in Africa, leading the transformation of the local ag industry. In South Africa, COFCO has adopted a 'contract farming' model, incorporating local farms into its supply chain and forming close relationships with farmers at every stage of production and distribution.