China's two largest grain trade firms - COFCO and CGOG – have now merged under the approval of the State Council and State-owned Assets Supervision and Administration Commission (SASAC). On March 14, SASAC issued an official notice of reorganization and CGOG was merged into COFCO as a subsidiary.
Established in 1994, CGOG has been engaged in the domestic trade of cereals and oils, warehousing and transportation, cereals and oils processing and the international trade in cereal and oil products. With grain reserve that can store up to 3 million tons of grain, five oil and feedstuff processing plants and five grain and oil research institutes, it is one of the largest grain traders in China. COFCO, on the other hand, is China's No.1 exporter and importer of grain and is a leading enterprise in the deep processing of oil, wheat flour and malt.
COFCO and CGOG therefore complement each other. To meet overall strategic needs, COFCO will overhaul the import and export, processing and logistic business of CGOG to create a more professional and market-oriented division. Great efforts will be made to coordinate in order to improve competitiveness as a whole and establish China's largest, most efficient and most dynamic bulk grain trade and logistics enterprise. On this basis, COFCO will become a main channel for the integrated operations of China's grain trade and a leader in grain trade and logistics as well as a grain trade gainit in the domestic and international markets.
