February 4, 2009
China state-owned grain firms '08 profits surge 1174 percent
China's state-owned grain companies earned profits of RMB2.09 billion in 2008, up 1174 percent from the previous year, according to preliminary statistics by the State Administration of Grain.
In 2007, the companies earned RMB167 million, the first profitability since 1961.
Insiders indicate that the companies earned in 2008 due to grain stockpiles. They added that the lowest wheat purchasing price in 2007 was about RMB1.2 per kg, while average selling price rose to RMB1.4-1.8 per kg last year.
The State Administration of Grain said the companies purchased 170.35 billion kg of grain last year, accounting for 58 percent of the total purchase in China in 2008. The state-owned companies, a major channel for the purchase and sales of grains, can make profits as grain prices gain.
US$1 = RMB6.8266 (Feb 4)
