CHINA- Supply chains solutions provider, Nisun International Enterprise Development Group Co. Ltd, has entered into a wheat flour sales and purchase agreement with Shandong Binliang Industrial Development Co. Ltd.
Nisun entered this agreement through its controlled affiliate, Fintech Supply Chain Management, and plans to accelerate its business growth in the wheat flour market through the partnership.
Binliang is in the business of purchasing and selling food additives, feed ingredients, grain, edible agricultural products, pre-packed food, and primary agricultural products. The company also provides related storage and warehousing services.
Wheat flour is a primary ingredient in various traditional Chinese dishes, such as noodles, dumplings, and steamed buns, and the wheat flour market has been growing rapidly in the world’s most populous country, with 1.4 billion people.
According to the International Grains Council, China remains the world’s largest wheat producer and is forecast to harvest 137.7 million tonnes in the 2023-24 marketing year.
“The collaboration is expected to significantly bolster our business footprint and drive the exploration of new expansion in the wheat flour market,” said Xiaoyun Huang, CEO of Nisun.
“We believe that this partnership will provide us with a competitive advantage and allow us to offer our customers an even wider range of quality agricultural products and services.”
Corn imports from the US surge
Meanwhile, China has been gobbling up US corn as prices fall, making US corn attractive to importers.
In the week ended March 16, export sales of U.S. corn to China totaled 2.245 million tonnes, the third largest weekly total recorded.
The latest deal, announced by the U.S. Department of Agriculture (USDA), saw China buying 204,000 tonnes of American corn.
China previously relied on domestic production to meet its local demand. However, the country has quickly stepped up imports as soy production became a national priority.
With Argentine corn expected to suffer in the face of a drought, the USA could remain China’s primary source of corn imports.