China to Consolidate State-Owned Soy Crushing Firms Bloomberg reported today that the Chinese government plans to force two state-owned agricultural firms to consolidate many of their assets. The plan calls for COFCO to incrementally take over the trading and oilseed processing assets of Sinograin, which is in charge of the country’s grain reserves. The domestic oilseed processing plants currently controlled by COFCO have annual capacity of 21.8 MMT, substantially greater than that of second place Wilmar. That will expand to at least 28.3 MMT once it is combined with Sinograin’s approximate 6.5 MMT capacity, which will make COFCO the largest oilseed processor in the country. Its crush in 2018 and that of Sinograin totaled 15.9...
From WPI Consulting
Communicating importance of value-added products
Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.