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  • By Lynda Kiernan-Stone, Global AgInvesting Media

China’s Vice-Premier Inspects COFCO’s Port Santos Project in Brazil

On June 27, China’s Vice-Premier of the State Council, Wang Yang, visited Brazil’s Port Santos where he inspected COFCO’s investments in the T12A and Cerealsul wharves, and toured an exhibition of COFCO’s model of developing a fully integrated value chain, its investment projects in Brazil, and the group’s global presence.

While in Brazil, Wang also received a report from COFCO Group chairman, Ning Gaoning regarding the group’s ‘going global’ initiative, its’ progress toward globalization, and its business model of ‘buying globally and selling globally’.

During his delivery, Ning Gaoning, stated that the entire value chain for the global grain and oil industry, from planting to processing, depends on large-scale wharves. And as one of the most important hubs of the global grain trade, Port Santos and COFCO’s T12A and Cerealsul wharves will be key links in the global agricultural and gain value chains.

COFCO has almost $5 billion invested in Brazil including two soybean oil pressing mills, four sugar mills, two wharves, 12 silos, and one transit station, providing operating volume in grain and oilseeds in excess of 8 million tons. Currently the group’s total grain source stands at 7.4 million tons with warehouse capacity of 1.81 million tons and port throughput capacity of 5.73 million tons. In addition, the group’s corn and soybean seeds business is a leader in South America, and is accountable for 14% of Brazil’s market share.

T12A and Cerealsul have a combined capacity of over 3 million tons. Through T12A COFCO plans to ship mainly soybeans, sugar, and animal feed to markets in China, Europe, and the Middle East, while Cerealsul, which has the capacity to import 500,000 tons of wheat, will have the ability to conduct the unmanned handling of imports from arrival, to storage, to loading through programmed management, while also providing clients with business intelligence services.

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