February 29, 2012

Beijing Grain Group reaps US$2.59 billion income

Beijing Grain Group Co., Ltd. (BGG), China's state-owned food firm, said February 26 that it gained RMB16.3 billion (US$2.59 billion) total revenue and RMB485 million (US$77.05 million) profit in 2011, up 21.6% and 22.1% on-year, respectively.

Meanwhile, the sales of Guchuan flour under BGG in three consecutive years comprehensively took the biggest share in national wheat flour market.

It is reported that finished grain and oil products manufactured by BGG were seen in more than 3,000 franchise shops of 36 supermarket system and 8 key wholesale markets in Beijing, with a market coverage of over 90%. The company in 2011 sold about 160,000-tonne products to other cities, growing by 24% year on year.

As a super-large consumer market, Beijing's annual consumption of grain reached 10 billion jins (one jin =1/2 kilogramme). Since the city could only produce two billion jins of grain every year, the rest 80% have to be imported from other places. The annual grain supply of BGG could reach five billion jins, taking up 50% of the total consumption of Beijing city.