Deepening agricultural cooperation within the BRICS framework is a focal point of the 2023 BRICS Business Forum, held on Aug 23 in the Sandton Convention Center, South Africa.
As a major international grain trader with a global presence, COFCO Corporation (COFCO) has long been committed to investing in BRICS countries, striving for mutual benefits and win-win outcomes. It has become an important force in driving the sustainable development and promoting the economic growth of BRICS countries.
Making grain trade with BRICS countries a reality to accelerate common growth
BRICS countries collectively account for about 40 percent of the world's total grain production, with their agricultural output constituting over 50 percent of the world's total. Agricultural product trade among BRICS countries is also highly complementary.
COFCO, as the main channel for the import and export of agricultural products in China, actively promotes grain trade with BRICS countries and facilitates the complementary circulation of agricultural products.
South Africa's corn yield and export volume rank among the world's top 10, and South Africa is an important source of high-quality corn globally. In 2019, COFCO took the lead in container imports of food-grade white corn from South Africa, and realized the first bulk import of feed-grade yellow corn from South Africa in May of this year. This marks the official opening of the South African corn export channel to China, representing a major breakthrough in agricultural product trade between China and South Africa in recent years.
Moreover, COFCO also imports feedstock, fruits, nuts, aquatic products, wool and other agricultural products from South Africa, and exports agricultural produce such as tomato products to South Africa, meeting the market demand of both countries.
In addition to South Africa, COFCO actively engages in trade cooperation with other African countries, importing specialty agricultural products such as oilseeds, feedstock, sugar, wool, alfalfa, citrus fruits, nuts, frozen fish, frozen shrimp, and spices. It also exports tomato products, tea, malt, and spices to African countries.
Brazil, being a vital agricultural producer, is also a crucial country for COFCO to conduct foreign investment and trade. COFCO is now one of the main exporters or processors of Brazilian agricultural products such as corn, soybeans, and raw sugar, and is Brazil's largest exporter of soybeans to China. In January this year, COFCO successfully imported its first shipment of Brazilian corn and opened up the export channel of Brazilian corn to China, which marks a new milestone in agricultural product trade between the two countries.
In March 2022, COFCO won the bid for the Santos STS11 project and officially commenced construction in August this year. The Santos Port is currently the largest port in Latin America, with direct shipping routes to 125 countries. Once the Santos STS11 project is put into operation, it will become one of the largest grain terminals in the port, significantly improving the efficiency of Brazil's agricultural product foreign trade and injecting new vitality into deepening agricultural cooperation between China and Brazil.
In addition, both Russia and India are two of the world's leading exporters of agricultural products, and are important trade partners of COFCO. Currently, COFCO's agricultural product trade with these two countries spans multiple categories, including vegetable oil, soybeans, corn, barley, and wheat.
With the increasingly smooth and robust agricultural and grain supply chains between COFCO, BRICS countries and other African countries, local agricultural economies have experienced rapid growth, contributing to the stability and efficiency of the global agricultural industrial chain and supply chain.
Innovating cooperation model to promote sustainable development
Relying on its advantages of entire industrial chain operations with a global layout, COFCO has continually increased investment in BRICS countries and is leading the local agricultural and grain industries toward modernization.
COFCO adheres to the philosophy of "To Meet Future Needs" and actively supports local agriculture in pursuing sustainable development. It collaborates with BRICS partners to address the dual challenges of climate change and food security.
In South Africa, COFCO has long cultivated the market and deepened cooperation. Its subsidiary, COFCO International South Africa, is the largest integrated grain processing/trading company in South Africa. Its business involves planting as well as grain source procurement, storage, and distribution, among which planting, trade, and pressing scale are first place.
By leveraging its own industrial advantages and global grain trade network, COFCO has innovatively explored a "contract farming" model. This involves integrating local farms into its own industrial chain, and establishing close collaboration throughout the whole process of planting, procurement, processing, trade, and logistics. It also provides farmers with cheaper production materials, such as seeds and fertilizers, and addresses local employment issues through its subsidiary factories.
Through this cooperation model, a highly bound community of interests has been formed to ensure mutual benefits and win-win results. Since 2009, COFCO has expanded this model from the important agricultural production area of Mpumalanga Province in South Africa to 43 farms across the nation, with a total contracted farm area exceeding 70,000 hectares. Currently, COFCO is promoting this model to sub-Saharan Africa to benefit more countries and regions.
In Brazil, COFCO has also established a full industrial chain integrating storage, processing, logistics, and trade, with a cumulative investment of over US$2.3 billion. With these industrial advantages, COFCO has implemented the Brazilian Traceable Soybean Project, and has established a sustainable soybean supply chain that does not destroy forests or vegetation. In 2022, this project was recognized by the United Nations Development Programme as a global exemplar, becoming a typical achievement of South-South Cooperation.
Furthermore, COFCO has promoted energy consumption and carbon emission reduction, agricultural water conservation, and ecological-friendly pest control in Brazil, achieving significant results. In 2023, it received a green energy badge awarded by the Brazilian Sugarcane Industry Association.
A representative of COFCO said that the corporation will continue to strengthen cooperation in food security, trade, and investment with BRICS countries, and work with all parties to maintain the stability of the global agricultural industrial chain and supply chain.
Joint efforts will be made to build a more efficient, inclusive, resilient, and sustainable international agricultural and food system, boost agricultural product trade to a higher level, and facilitate the transformation and development of the agricultural and food industries to benefit more countries and regions, so as to contribute to the recovery of the world's economic recovery with the strength of BRICS countries.
[Photo/sasac.gov.cn]
