March 13, 2009
China advised to cancel corn reserves in 2010
China should cancel state reserves for corn and soy in 2010, and grant subsidies to farmers instead, said a senior manager with COFCO.
China's corn consumption and demand will drop this year, causing stockpiles to increase, according to COFCO general manager Yue Guojun.
Yue said China should allow processing enterprises to join corn reserves to relieve pressure from selling reserve crops and provide subsidy opportunities for those companies.
Since last year, China has absorbed 40 million tonnes of corn reserves, 24 percent of total domestic output. All corn reserve plans were carried out by COFCO.
COFCO is China's largest oil and food importer and exporter. It has the largest deep processing capacity for corn in China, and its listed subsidiaries include China Foods, China Agri-industries Holdings, COFCO Real Estate and COFCO Tunhe.
