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  • By Lynda Kiernan-Stone, Global AgInvesting Media

Germany’s KTG Plans Major Expansion of Grain Sales to China

Germany’s leading farming company, and one of the few listed farming operations in Europe, KTG Agrar, announced that it is planning a major expansion of grain and food sales to China after a unit of China’s Fosun International acquired a stake in the group.

KTG cultivates 45,000 hectares of GMO-free grains, rapeseed, soybeans, sugar beets and other GMO-free crops. It also owns the German trading house, C. Mackprang, and renewable and food processing operations.

KTG is targeting food sales to China of between €20 million and €30 million for 2015, and an increase in sales to between €100 million to €200 million per year over the next three years. Currently 80% of KTG’s sales are in Germany and 20% are exports, however, the group says that these changes could make China its biggest market.

These ambitious plans are announced after China’s Fosun International purchased a 9.03% stake in KTG through a Portuguese unit. Fosun has interests in e-commerce channels and a chain of 8,000 retail shops in China, which KTG aims to leverage to launch its products including breakfast muesli, GMO-free soybeans, malting barley, frozen foods, and potato products throughout China.

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