October 9, 2010

China's state-run grain enterprises nearly halved in five years

The number of China's state-run grain enterprises went down by 47% in the past five years as a result of the country's property right reform to optimise the industrial structure.

By the end of 2009, the total number of China's state-owned grain enterprises stood at 18,163, some 16,469 less than that of 2004 or down 47.6%.

China's state-run grain enterprises continue to act as the main channel for grain purchase after the reform.

State-run grain enterprises purchased a total of 646.1 million tonnes, accounting for 57.8% of the country's total, from 2006 to 2009.

Starting from 2007, the whole industry witnessed profit gains three years in a row. And the net assets have reached to RMB81.7 billion (US$12.25 billion), RMB13.97 billion (US$2.09 billion) more than that of 2004.

However, weaknesses in enterprise scale, distribution capacity, as well as equipment and technology, continue to affect the industry's overall competitiveness. Also, China's grain enterprises are still confronted with difficulties in fund-raising and financing. Thus, there's still long way to go for the industry to deepen reform and reach stronger competitive edge.