COFCO’s unique advantages in global distribution, fully-integrated value chain, and agricultural innovations, as well as its seat in the world’s largest emerging market make it one of the world’s leading agribusinesses, ready to build even more stable food corridors between the major production areas and the emerging markets.
Founded in 1949, COFCO has become a leading supplier of agri- products with grain, oil, sugar and cotton forming our core business and business scope ranging from branded products to financial services and real estate. COFCO has the leading edge in the Chinese market and is well positioned to take its first steps as an International agribusiness.
At present, COFCO has total assets of 537.36 billion RMB, an annual revenue of 442.65 billion RMB, total annual turnover of 150 million tons, a global storage capacity of 31 million tons, an annual processing capacity of 90 million tons, and an annual port transit capacity of 65 million tons. In China alone, COFCO has an integrated processing capacity of more than 60 million tons. COFCO is China’s largest food processing company, with products covering all the main categories of Chinese daily consumption, including rice, wheat, corn, oil and oilseeds, sugar, cotton, meat products, dairy products, wine, tea, and so on. COFCO has 2.3 million terminal sale points throughout China’s 952 large and medium-sized cities and more than 10,000 counties and villages, capable of providing consumers with a sufficient supply of quality and safe food year-round. COFCO plays an important supporting role in the maintenance of China’s grain and oil market stability.
On the global stage COFCO has a unique advantage. Anchored in the world’s largest market with a whole value chain that stretches around the world, COFCO has huge development potential. We are industry leaders in rice, wheat, corn, oil and oilseeds, sugar, and cotton in over 140 countries and regions of the world. We have a global coverage of grain and oil producing areas and own a sophisticated global production & procurement platform and trade network. The company already earns more than 50% of its operating income from overseas business. With its access and strong planning, COFCO can ensure a stable supply for two markets, Domestic and International, and be the foundation for food security.
We have also established packaged foods, finance, and real estate as three major complementary businesses. COFCO produces high-quality packaged food products and has created several high-quality brands covering oil, dairy products, meat, wine, and tea, of which Fortune, Mengniu, Greatwall, and ChinaTea are the most influential. We have also created financial services tailored for our needs in agricultural development, forming our own trusts, futures trading agents, insurance, risk management consulting, banking, funds, and other financial services. We have become builders of excellent living spaces, involved in the construction and management of commercial, residential, and tourism real estate as well as hotels and comprehensive regional development.
As an investment holding company, COFCO owns 11 listed companies, seven in Hong Kong: China Foods Ltd.(00506.HK), China Agri-Industries Holdings (00606.HK), Inner Mongolia Mengniu Dairy (Group) Co., Ltd. (02319.HK), CPMC Holdings Limited (00906.HK), Joy City Property Ltd. (00207.HK), COFCO Meat Investment Co., Ltd. (01610.HK), Fountain Set (00420. HK); and four in Mainland China: COFCO TUNHE Sugar Co., Ltd. (600737.SH), Jiugui Liquor Co. Ltd. (000799.SZ), COFCO Property Group Co. Ltd. (000031.SZ), COFCO Biochemical (000930.SZ).
In the future, COFCO will continue to focus on creating the world’s leading grain trader and food producer, aiming to become a model for national food security strategy and food safety strategy implementation.
During the period of the 13th Five-Year Plan (2016-2020), we strive to increase the state-owned share of COFCO’s food and grain industry to over 80%. By continuously promoting capital and business integration, we will improve our resource development and control capabilities. Through technological innovation and structural upgrades we will create more efficient value chains and have greater macro-control over national food security issues. By 2020, in order to achieve the “321155” objective, we will improve our capabilities to “3579” operating capacity.
Urging agriculture Supply Side Structural reform
COFCO has actively involved in the solutions on plantation restructuring, stock reducing and providing premium, safe and green food products, strived to be the leader and pioneer in execution of national food security strategy and agriculture supply side structural reform.
COFCO has taken the leading role in building the business model of commercial agriculture, serving market balance and consumption upgrading, driving the growth of modern agriculture so as to upgrade the whole industry. Meanwhile, COFCO is deeply rooted in China while building our network around the world, striving to be the global leading agriculture enterprise.
COFCO has been pushing forward the integration of reserve business and market-oriented business, balancing the supply demand structure while maintaining the stable productivity so as to promote the sustainable development in agriculture. By selecting high-quality varieties, COFCO has continued to develop our deep processing business and address oversupply of corn and rice but shortage of soybean so as to optimize the variety and quality mix of agri-products in China.
COFCO has been innovating in agricultural industrialization. Based on market demand and following the model of “enterprise + farmer + brand”, we have built 12 industrial chains integrating source, storage, transport and sales, including rice, our, oil, sugar, cotton, dairy products, meat, tea, corn, feed, tomato and wine. We actively practice our brand philosophy and share our value-added benefits with upstream and downstream so as to enhance the quality and performance of agriculture.
Led by agriculture technology and following the model of “technology + brand + park”, COFCO has been developing high-tech agricultural industry, including industrial parks, tourist agriculture parks and food R&D parks so as to drive the industry growth and restructure the supply side.
COFCO has been building a high-efficient and modern logistics system that matches our 13th Five-year Plan and our role as a leading agribusiness, combining road, railway and water transportation, and connecting northern, central and southern regions. We continue to optimize the layout of storage facilities, strengthen transport capacity of bulk grain and expand the trade volume so as to improve distribution efficiency and reduce logistics cost.
Led by “high-quality, safe and green” philosophy, COFCO has established the quality control system covering the whole industrial chain from farm to fork. We control risk in the whole process, innovate tools and methods on quality and safety, and promote the growth of international standard in agri-products so as to advance the quality and safety of agri-products in China.
COFCO has speeded up our steps towards the global leading agribusiness, improve our layout in the major G&O production regions and key logistics nodes around the world. Meanwhile, COFCO has enhanced cooperation in agriculture with countries along the “Belt and Road” Initiative and actively participated in the international trade so as to strengthen our origination capacity and contribute to structural reform on supply side in China.