June 1, 2012

 

China Grain Reserves Corp. seeks greater share of edible oil market

 

 

The China Grain Reserves Corp. (CGRC) has set its sales targets of its edible oil brand "Jinding" at 200,000 tonnes for 2012 and 900,000 tonnes by 2017, according to a report in China Securities Journal on Wednesday (May 30).

 

The report was quoted from Liu Jianmin, general manager of the state grain stockholder.

 

The CGRC released its first small-packaged edible oil brand Jinding into retail markets at the beginning of this year. So far, it has sold more than 40,000 tonnes of soyoil.

 

The CGRC has already begun to market its Jinding rapeseed oil brand in eastern China, which is the company's another move to expand its share into the domestic retail market of edible oil after selling its soyoil products in eastern and northern China from the early period of this year.

 

The stockpiler is responsible for purchasing grain for state reserves and its nationwide grain resources enable it to lower its edible oil processing costs by about 6% compared with its peers.

 

Wang Qingrong, vice-general manager of the company, said that Jinding brand oil would be priced 3 to 5% lower than major brands in China.

 

The company also had plans to introduce an edible blended oil and an aroma rapeseed oil this year. It would start mass marketing of its products in Beijing around July, Wang noted.

 

Currently, the Yihai Kerry Group is the biggest cooking oil producer in China, taking up 45% of the domestic edible oil market share. It is followed by the COFCO Group and Shandong Luhua Group Ltd, taking up market shares of 15% and 7% respectively.

 

At present the CGRC's edible oil production capacity is 600,000 tonnes. "While taking a foothold on mainstream soyoil, rapeseed oil and peanut oil, the stockpiler may also move into the woody oils market to enrich the product mix," Liu added.