News called Shang capacity expansion competition pushes up food prices

Hu Junhua in Jiangsu Province, the main grain-producing areas of Yancheng, in the late June one weeks of time, wheat prices from 0.93 yuan per catty climbed to the all-time high of 1.05 yuan per catty.　　"The first financial daily," a reporter survey found that there is money behind the driving factors, but the real push is the big food processing enterprises in the expansion of the capacity of crazy demand. Capacity expansion competition in Yancheng every June after the harvest of wheat, just planted rice, October harvested.　　According to local people, in the Yi Hai (yancheng) grain and Oil Industry Co., Ltd. location Sheyang, 2009 Paddy prices for the entire Yancheng the highest, one reason is the acquisition of the sea, its acquisition price than the market price per catty high 4~5 points, the acquisition volume is large. Jiangsu Grain system Officials also confirmed that this year in Yancheng to buy more wheat is mainly Cofco, Yi Hai Jia these large enterprises.　　He said that the rapid expansion of processing capacity of large grain and oil processing enterprises, such as COFCO, has increased demand for food, and objectively has a certain pulling effect on the rise in food prices.　　Domestic grain and oil processing industry is still in the state of small profits but quick turnover, Jiangsu, a flour processing enterprises in charge told reporters that the current processing a ton of wheat only about 20 yuan of net profit, small-scale processing can not earn money, all enterprises have the impulse to expand the scale. In addition, some new oil processing business also needs large-scale production as a support, rice bran oil as an example, Cofco, Yi Haijari, China Grain Reserves Management Corporation (hereinafter referred to as "Cofco") are operating the business. To produce rice bran oil requires rice bran expansion device, a set of primary rice bran expansion device needs more than 200,000 yuan, day processing rice capacity less than 100 tons of millet factory can not afford this cost, and this level of processing enterprises can not provide enough rice bran to extract rice bran oil.　　Therefore, the rice processing capacity of Cofco, Haijari and Cofco in the northeast and north China in recent years is more than 200,000 tons. Rapid expansion of food processing capacity, has exceeded the speed of increase in food supply, demand and supply asymmetry, so that the price of wheat, rice, corn has more upward momentum. According to the national medium and long-term planning framework for food Security (2008-2020), the National food demand in 2010 and 2020 will reach 525 billion kg and 572.5 billion kg respectively, and the demand is mainly composed of rations, fodder and industrial food, and three pieces of seed food, with a slight decrease in ration consumption,　　Seed grain is basically stable, and feed and industrial food will increase, according to the current grain production, the national demand for food and existing supply capacity will produce 45 billion kg gap. In the case of corn, which has risen by about 30% per cent this year, the National Development and Reform Commission (NDRC) announced the "Guidance on promoting the health of the corn deep processing industry", which revealed that the growth rate was much higher than that of corn production due to the rapid expansion of corn deep-processing capacity. During the "XV" period, the amount of corn in deep processing of corn in China increased by 94%, an average annual growth of 14%, while corn production grew only 31% in the same period, the average annual growth rate was only 4.2%, far lower than the industrial productionThe speed at which it can expand. In rice processing capacity, in 2009, China's rice production was 193 million tons, the annual consumption of rice and its products for the use of about 140 million tons, and the Chinese Food Industry Association president Bai Miqing introduced, as early as the 2008 National rice Processing capacity has reached 160.65 million tons.　　Add in nearly two years of grain, Yi Hai, Cofco and other agricultural giants on the new projects, rice processing capacity to appear saturated state. Yancheng Grain System People say, Yi Haijari in Yancheng rice processing project has been put into production, the grain also not weakness.　　According to the Haijari where to build the plant grain also where the plant strategy, COFCO will also be in yancheng construction of rice processing projects, is expected to invest up to 1 billion yuan, in addition to the production of rice, but also to do rice by-products of refined deep-processing and biomass power generation projects.　　Social capital to store grain to bet on the rise in food prices of various social capitals poured into the field of grain, but also a factor to push up food prices. Yancheng long Gang Zhen Food Brokers Association was established in 2008, when only 66 members, but as the food circulation profits year by year considerable, the association's membership number has increased by more than 20 each year.　　The association's head said that grain brokers buy wheat a ton can earn 20~25 yuan, although the profit margin is not very high, but the acquisition is very large, generally can reach 2000~3000 tons, hard work dozens of days to earn tens of thousands of yuan, or quite worthwhile. "The original do foreign trade, do crafts, now take money to the knowledgeable person to operate the food."　　"Yancheng local flour factory in charge of the reporter said that in recent years, Jiangsu has launched a large number of grain warehousing facilities, some funds are from the original foreign trade, some enterprises and individuals. In this respect, the Deputy Director of the National Bureau of Grain in June this year's work report also reflected that the report said that the 2003 domestic grain and oil warehousing enterprises per household Cangjong only 9,400 tons, to 2009 to 20,200 tons, 6-year growth of 2.1 times times.　　As at the end of 2009, the country has 4372 households of non state-owned grain and oil warehousing enterprises, effective Cangjong 51.72 million tons, non state-owned enterprises effective Cangjong accounted for the total number of effective Cangjong in the country, also from 2008 12% to 2009 16%. But these are not the main players pushing up the price of wheat, industry insiders told the newspaper yesterday, the national wheat is now annual output is 110 million tons, according to 1 tons of 2000 yuan, the consumption of capital is 220 billion yuan, to pry the price of wheat to sell or eat more than 10% of wheat, which requires the use of capital of 22 billion yuan,　　At present, there is no hot money has such financial strength.　　Big Shang is the acquisition of the main and the elusive defenders compared to the hot money, Cofco, Haijari such as the agricultural giant, in the wheat price increase process attracted more attention. Although the two giants in Yancheng have no flour processing plants, but Cofco in Jiangsu Zhangjiagang East China Oil and grain Industry (ZHANGJIAGANG) Co., Ltd., known as the world's largest integrated oil and foodstuffs processing base, processing wheat 750 tons, the annual processing of wheat about250,000 tons, the whole COFCO Group Wheat Processing Division has 7 enterprises, distributed in Jiangsu, Henan, Shandong and other fields, the annual processing of wheat nearly 1.5 million tons. Because of large scale and abundant capital, the price of wheat purchased by Cofco is higher than that in general market.　　Industry insiders introduced, Cofco in Yancheng under the jurisdiction of the Sheyang commissioned some brokers buy wheat is 1.03~1.04 yuan per Jin, and the current market price is higher for 1.02 yuan per catty. Yi Haijari in Kunshan, Jiangsu has a flour processing plant, daily processing of wheat 4200 tons, is expected to be put into production at the end of this year. Industry insiders said, Yi Hai Jia entrusted grain depot, grain brokers buy wheat than the price is higher,　　They and brokers agreed: 6 months after the purchase of wheat sold to the benefit of the sea Kerry in the price is 1.1 yuan per catty, if the removal of the 6-month custody fee, the actual wheat purchase price equivalent to 1.05 yuan per catty, which formed a benchmark, other enterprises and food brokers to the price as a reference to set their own purchase price, the local appearance and the price closer to the situation. However, the Yi Hai Jia Li group related people denied the benefit Haigarila wheat purchase price. He said that in the request of some branch companies to buy wheat, Yi Hai Jia did not relent.　　And Yi Hai Kerry itself did not acquire the qualification of wheat, can only entrust grain brokers and state-owned Grain Depot collection, at present in Yancheng only acquired 3000~4000 tons of wheat, began to purchase price is 0.98 yuan per catty, is now 1.01 yuan per catty. Yancheng, a large flour mill in charge of the newspaper said: "Outside the food war, forcing us to buy ahead of the current high moisture of wheat (the state regulation of qualified wheat moisture standard is 12.5%, this year due to rainy weather, Yancheng wheat moisture content up to 15%~16%)."　　"In this person's opinion, the main character of the food War is Cofco and Yi Hai jia." Jiangsu has become a battleground for large grain processing enterprises in recent years. In addition to Cofco and Yi Hai Jia Li, the domestic largest private flour production enterprises Hebei Suntory Flour Group, in Jiangsu Suqian and Jiangsu Xinghua, respectively, the flour Processing project, of which Suqian flour Project day processing wheat 2600 tons; The Xinghua Project day processing wheat 1200 tons.　　And the Hong Kong South Shun Group in Yixing, Jiangsu Province also acquired a new day to deal with more than 1000 tons of wheat flour processing plants. In Suqian, Suntory wheat purchase price generally higher than the market price of 0.06 yuan/kg, and 2009 years Cofco group in the same level of the national wheat minimum acquisition price, based on the price per kilogram of 1 cents above the purchase of Henan Xinxiang wheat.