COFCO Enters Pakistan’s Corn Processing Industry
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COFCO ET International Engineering Co., Ltd., and Pakistan MATCO FOODS., ltd. successfully signed a contract for a 200-ton/day Corn wet milling production facility in February 2021. It will produce Corn starch in Pakistan. Due to the latest challenges of Covid-19, the two parties have had to overcome many difficulties and inconveniences by communicating effectively via video conference calls. After receiving many offers, MATCO selected COFCO ET International Engineering Co., Ltd as the general contractor for their first Corn deep processing line. In 2018, relevant technicians of COFCO ET International Engineering Co., Ltd. visited MATCO during a business trip in Pakistan, developing friendly relations through professional communication, which established a solid foundation for signing this Corn processing contract.
This project will be an essential milestone for COFCO ET International Engineering Co., Ltd to enter the Pakistan market. As a subsidiary of COFCO Group (China Oil and Foodstuffs Corporation), one of the Fortune top 500 companies, high standards, good quality, and excellent service is the top priority. COFCO, founded in 1949, plays a significant role in China’s imports of grain and other agro-dairy products as well has been actively expanding the overseas markets and continuously improving G＆O logistics and storage capacity worldwide to ensure a stable overseas supply chain. Matco Foods Limited is a diversified agro-processing and food products company established in 1964. It is one of the top 100 overall exporters of Pakistan.
COFCO group also expressed its willingness to establish industries and explore further the Pakistani market. The Ambassador of Pakistan Moin ul Haque met with Mr. Luan Richeng, President of COFCO, in Beijing. He briefed President Luan on the growing trade ties between the two countries after the launch of phase Ⅱ of FTA, which has given duty-free access to many agro products. The Ambassador noted that Pakistan is a leading producer of grains and agro products like rice, wheat, sugarcane, cotton, potatoes, etc., which can be exported to China to meet its market’s growing needs. He invited COFCO to consider investing in the food processing business in Pakistan. A detailed briefing was also given on Pakistan’s investment policies for foreign enterprises in the agriculture sector.
Mr. Luan expressed his keen interest in the Pakistani market. He assured that COFCO stood ready to explore opportunities in Pakistan, benefitting from the attractive investment regime and the strong agriculture sector of Pakistan. During the meeting, the two sides extensively discussed Pakistan-China trade and investment ties and exchanged views on possible collaboration between COFCO and Pakistan. It is to be noted that in China, COFCO is the largest market-oriented grain enterprise and the major importer and exporter of soybean, wheat, Corn, sugar, and other agricultural products. COFCO has an annual processing capacity of over 60 million tons and provides products covering all the main categories of daily consumption to Chinese consumers.
Pakistan Corn Trade
In 2020, Pakistan imported Corn worth $50.2 million, becoming the world’s 74th largest importer of Corn. In the same year, Corn was Pakistan’s 181st most imported product. Pakistan imports Corn primarily from: the United States ($25.8 million), Thailand ($18.2 million), Turkey ($2.52 million), Brazil ($1.79 million), and Italy ($617k).
The same year, Pakistan exported Corn worth $14.3 million, making it the world’s 51st most significant exporter of Corn. In the same year, Corn was Pakistan’s 158th most exported product. The leading destination of Corn exports from Pakistan is Vietnam ($7.06 million), Malaysia ($2.72 million), Sri Lanka ($1.6 million), the United Arab Emirates ($1.14 million), and Somalia ($461k).
Other sources: GWADARPO
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