COFCO, one of China's biggest agricultural trading and processing companies, has signed an overall strategic cooperative agreement with the Japanese trading company Itochu on the global purchase of grain and oil products.
Itochu has published the information about the cooperation with COFCO on its official website. It says that the two sides will cooperate in various aspects, including food manufacturing and processing, distribution, trading, information and resource exchange, skill transfer, and management resources sharing. The two companies will jointly purchase grain, dairy products, and meat in the international market.
A representative of COFCO said that the company signed the agreement with Itochu in Beijing on July 3, but no details were given. Itochu also said that the detailed cooperative projects, which include enlarging sales channels of Japanese rice in China, are under discussion.
COFCO is reputed to be the biggest import and export company for grain and oil products in China, while Itochu, which owns more than one hundred companies in sectors such as food processiing in China, specializes in grain and food trading, logistics, and machine manufacturing. As the international grain prices continue to rise, the partnership of the two can improve their say in the world grain trading market.