CHINA – Supply chains solutions provider, Nisun International Enterprise, has entered into a wheat flour sales and purchase agreement with Zhongyu Food Industry in a bid to accelerate its business growth in Wheat Flour Market in China.
Founded in 2003, Zhongyu Food is a leading manufacturer in China with a green circular economy from wheat seeds to final products such as dried noodles and gluten powder.
According to World Grain, the agreement was reached through its controlled affiliate, Fintech Supply Chain Management in anticipation that Nisun will enhance its business presence in the wheat flour market and fuel its exploration of new growth opportunities.
According to the agreement deal, Shanghai, China-based Nisun, an integrated supply chain solutions provider, will fulfill orders from Zhongyu Food through Shandong Fintech.
Zhongyu Food would notify Shandong Fintech of the purchase quantity, delivery date, and other requirements one day in advance and pay the full amount for the goods within 10 business days from the delivery date.
As a result, Nisun estimates that by the end of 2023, the value of the agreement with Zhongyu Food will exceed RMB 600 million (US$87.3 million).
“We are thrilled to establish the partnership with Zhongyu Food through the agreement,” said Xiaoyun Huang, chief executive officer of Nisun adding that “We believe the new partnership will be a valuable addition to our existing efforts in the wheat flour market that can enlarge our customer base.”
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.
The region produced around 137.7 million tons of wheat in 2022 and consumed almost 150 million metric tons of wheat in the 2021/2022 marketing year.
The yearly per capita wheat consumption of China is projected to increase from 65.8 kg in 2019 to 76 kg in 2030 and 95 kg in 2050.
The agreement comes after the recent partnership between Nisun and Binliang, a key player in purchasing and selling food additives, feed ingredients, grain, edible agricultural products, pre-packed food, and primary agricultural products in China.