September 15, 2010

China Food Services inks deal with Heilongjiang Bai He Group

China Food Services Corp announced Tuesday (Sep 14) it has signed a broker dealer agreement with Heilongjiang Bai He Agricultural Productions & Equipments Co Ltd to offer a wide range of Chinese grain products to the US, Canadian and the Latin American markets.

Frank J. Yglesias, CEO of China Food Services, an international food and beverage distributor specialising in the distribution of US and international food and beverage brands to the Chinese market, said, "We must take advantage of the global commodities markets and the global supply and demand market, to leverage our relationships to broker large quantities of grains in markets that have a shortage."

"Currently the Chinese grain exports to Russia grow by 26% this year due to the Russian drought. With our current partner, we can quickly and efficiently fill any demand in the market and create a win-win situation," he added.

Heilongjiang Bai He Agricultural Productions & Equipments Co Ltd deals with grain purchase, grain internal trade and export, fertiliser production and sale, agriculture research and service. The company produces two series of fertilizers - "Baihe" and "village yard", while its business network of grain purchase has covered all parts of China.

China Food Services Corp owns and operates Golden Dragon Food & Beverage Import & Export Co Ltd (GDHI) in central Hong Kong as well as Beijing Jin Long Fei International Trading Co Ltd in China. GDHI acts as a buying agent for its Hong Kong subsidiary, negotiating vendor contracts and services with US food and beverage industry partners.

The Hong Kong company plays a strategic role in the importation of products into the Chinese market by leveraging the Closer Economic Partnership Arrangement (CEPA) with China. Through this arrangement, Beijing Jin Long Fei International Trading Co Ltd distributes some of the most popular US food and beverage brand products directly into the hypermarkets, supermarkets and convenience stores in China. The company is responsible for order fulfillment for its clients in China, as well as providing advertising and promotion (A&P) services for its US food and beverage products.