July 25, 2006

 

China's New Hope purchases 6,000 tonnes of US corn

 

 

New Hope Group, the largest feed producer in China, announced the purchase of 6,000 tonnes of US corn on Tuesday (July 18).

 

The deal was facilitated by the US Grains Council (USGC).

 

Liu Yonghao, New Hope Group president of the board, met with Council staff in September 2005 to discuss the company's plans and learn how US agricultural could play a role in their expanding business. He had predicted that NHG would be among the first US grain customers when China began importing US corn.

 

NHG operates more than 60 feed mills and has a stake in the Liuhe Group, which operates approximately 50 feed mills.

 

The USGC has worked closely with the company in the past and this relationship would continue to grow, said Mike Callahan, US Grains Council senior director of international operations - Asia.

 

Recent US corn purchases by private Chinese importers include 50,000 tonnes of corn by China Xiwang Sugar Holdings Company Ltd.

 

China's imports of corn are expected to increase as demand for ethanol hots up in an increasingly power-hungry economy. However, the government has promised it would boost production and cut exports to ensure adequate supplies.