Newsroom
2005
CWB signs million-tonne new crop sales agreement with China
January 21, 2005
Winnipeg - The CWB today signed a Memorandum of Agreement (MOA) with the China National Cereals, Oil and Foodstuffs Import and Export Corporation (COFCO) for the sale of 1 000 000 tonnes of milling wheat in 2005-06. The MOA calls for the wheat sale to be negotiated under normal commercial practices and at market values. At today's prices, the value of the agreement is approximately $250 million.
The MOA was signed in Beijing by Bill Spafford, the CWB's Vice President, Marketing and Haiguang Shi, General Manager of the CWB's Beijing office, with Mr. Yu Xubo, Vice President of COFCO and Madam Yang Hong, General Manager of COFCO's Wheat Division. The signing, witnessed by Canada's International Trade Minister Jim Peterson, coincided with the Government of Canada's trade mission to China.
"China is an important market for the high-quality milling wheat produced by western Canadian farmers," said Spafford, noting China was the largest foreign buyer of Prairie-grown wheat in 2003-04, with imports of 1.8 million tonnes. "We are pleased to commit to continue meeting the needs of the Chinese market in the coming year."
The CWB's trading relationship with COFCO began in 1961 with a long-term sales agreement for Prairie wheat and barley to China. Since that time, China has become one of the CWB's largest customers, importing more than 120 million tonnes of grain. The CWB now provides about half of China's total annual wheat imports and one-fifth of annual malting barley imports.
In 1994, the CWB opened a branch office in Beijing to provide service to COFCO and the CWB's other customers in China.
Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. As one of Canada's biggest exporters, the Winnipeg-based company sells grain to more than 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.
For more information, please contact:
Louise Waldman
Manager, Media Relations
Tel: (204) 983-3101
Cell: (204) 479-2451