COFCO's market share in domestic rice flour, sugar and milk will exceed 20%

In order to realize the country’s goal of grasping grain resources, protecting the interests of grain farmers, and playing the role of the central government as the main channel, COFCO’s share in major domestic markets such as rice, noodles, oil, sugar, and dairy products will exceed 20% in the next five years.

According to reports, in the next five years, COFCO will occupy a leading position in those fast-growing food consumer products. The market share of rice, noodles, oil, sugar, meat, dairy products, wine, and beverages will exceed 20%, and the comprehensive market share will be domestic leading position. Increase the efficiency through scale and technology, increase the added value of agricultural products through brands and channels. COFCO chairman Ning Gaoning said that if there is no increase in added value driven by industrialization, the increase in the price of agricultural products alone will have a very limited effect on farmers’ income. Through the market-based approach, the efficiency and value of the entire industry chain will be improved. COFCO shall form services including technical, seed, and financial and other industrial chain links. Eventually, farmers and land will become part of the entire industry chain of COFCO and farmers will become COFCO's. Strategic collaborators.

The “Twelfth Five-Year Development Plan Outline for the Grain Industry” issued by the National Development and Reform Commission and the State Grain Administration has recently proposed that central grain enterprises should be encouraged to enhance their overall strength and lead the development of the industry. At the same time, efforts were made to cultivate a number of state-owned or state-controlled regional large-scale grain companies. Increase support for leading enterprises in grain industrialization. We will play an important role in the key food industrialization leading enterprises in the national food emergency processing and supply of finished grain supply needs. Yu Xubo, president of COFCO Group, said that in 2012, COFCO will further capitalize on the advantages of capital, brand, management, and technology to serve “agriculture, rural areas and farmers”, strengthen scientific and technological innovation, strengthen cooperation with farmers, and increase agricultural efficiency. While increasing peasants' income, the company will achieve scientific development and leapfrog development.

COFCO's businesses cover the vast majority of domestic agricultural and planting areas such as rice, wheat, soybeans, rapeseed, corn, grapes, tomatoes, sugar, barley, meat, and dairy. In the main corn producing areas in northeastern China, COFCO's acquisition volume ranks first in the industry; in the major wheat production areas in North China and rapeseed production areas in the Yangtze River Basin, COFCO wheat acquisitions and rapeseed acquisitions rank first among market-oriented companies. In 2010, the COFCO soybean business scale was 5.21 million tons, and the rapeseed business scale was 1.05 million tons, accounting for 15% of the total purchase volume in the domestic market.