China to purchase wheat from Kazakhstan26 may 2014, 01:35
China is going to purchase 100 thousand tons of wheat from Kazakhstan, Tengrinews reports referring to the press-office of KazAgro, Kazakhstan Government's arm for agricultural development.
The agreement was signed by the Chairman of Board of KazAgro Dulat Aitzhanov and Vice-President of the COFCO (China National Cereals, Oils and Foodstuffs Corporation) Chi Jingtao. COFCO corporation is China’s largest supplier of diversified products and services in the agricultural and food industry.
KazAgro began negotiating strengthening of cooperation in wheat trade with China earlier this year. Then the framework agreement was reached during the state visit of the President of Kazakhstan Nursultan Nazarbayev to China on May 19-20, 2014.
Under the agreement terms, COFCO will purchase 100 tons of wheat from KazAgro holding during 2014-2015 marketing year at a fair market price.
Besides, the countries are considering co-financing of construction of a grain terminal to expand the wheat trade and facilitate transit shipments of Kazakh wheat to the third countries.
Kazakhstan hopes to increase its wheat shipments to China in future. Dulat Aitzhanov emphasized that China was one of the most strategically important markets for Kazakhstan’s wheat, oilseeds and other crops.
This agreement is viewed as the first step to establishing stable bilateral wheat trade between the two countries.
Writing by Assel Satubaldina, editing by Tatyana Kuzmina