In today’s Talking Points: Soybean-meal futures booming on the Dalian Commodities Exchange, three-month contracts up 40 percent; Fonterra to launch Tip Top Ice Creams in China using online retailing; China’s largest grain trader COFCO announces major global expansion targets, plans to source 50 million tons of wheat overseas by 2020; and China expanding relationship with FAO to further assist developing country’s with food security.
Soybean-meal futures up 40 percent
Soybean-meal, a feedstock for livestock, is booming. Trading volumes in soybean-meal futures on the Dalian Commodity Exchange nearly tripled in May and prices of the benchmark three-month contract is up 40 percent for the year. About $250 billion of soybean-meal futures were traded in Dalian in May, equaling contracts for about 600 million metric tons of soybean-meal. Prices have been driven up by growing demand for livestock feedstock to supply Chinese consumers’ increasing consumption of meat, and a reduced soybean crop in South America. In the US, near-term prices for soybean-meal futures traded on the Chicago Board of Trade are up even more than they are in China, surging by about 55% this year.
Source: Wall Street Journal
Fonterra to launch Tip Top Ice Creams in China through online retailing
Fonterra, the New Zealand dairy giant, is trialling an e-commerce launch of its Tip Top ice cream in China. The company said Tip Top ice cream will be sold online through the Alibaba-owned Tmall e-commerce site. Distribution will be handled by frozen food distributor Zhuhai Ice Technology. According to Kim Ballinger, Tip Top director, taking a flexible approach to the e-commerce roll out will help Fonterra prepare the brand to “capture future growth”. Fonterra will launch a range of two-litre tubs and is considering offering novelty sticks and scoop products. The company is initially offering six flavours: vanilla, chocolate hokey pokey, cookies and cream, Neapolitan and strawberry.
Source: Just Food
Chinese food trader COFCO expands global investment
State-owned food trader China National Cereals, Oils and Foodstuffs Corp will source 50 million metric tons of grain from overseas markets by 2020, according to its chairman Zhao Shuanglian. The plans, aimed at securing China’s grain security, will target markets including Australia, South America and Europe. Zhao said COFCO will focus on acquiring or merging with firms that can help solve food shortages at home and further improve its capability in maritime transportation, as well as the entire supply chain services in seed, pesticide and fertilizer businesses. COFCO is China’s largest food trader and has invested more than US$3 billion in global markets over the past two years as it moves to challenge the four big global grain traders.
Source: China Daily
China helps FAO to further promote food security
The new memorandum of understanding will broaden the scope of China’s role in worldwide rural development after decades of collaboration with FAO. According to the FAO’s director general, China has been one of the biggest contributors to FAO food security programs, both in financial terms and by sharing its own experience knowledge and technology with other countries. China has much to offer to all developing countries in the world in terms of food and agricultural security, said Graziano da Silva, director general of FAO, and citing an ancient Chinese technique, growing fish in rice paddies in Zhejiang Province. This rice-fish system has been in existence for over 1,000 years and was designated as Globally Important Agricultural Heritage System (GIAHS) by the FAO.
Source: Food Navigator Asia