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Thursday, October 28, 1999, updated at 16:33
Business Grain-Producing and Marketing Provinces Jointly Explore Markets

Zhejiang, a province with a huge market space and an enormous sales network, established a stable commission grain-storing and selling relationship with Jilin and Jiangxi, famous grain-producing provinces in China, to jointly explore the grain market, so as to realize the mutual complementarity of superiority and solve the problem concerning grain sales.

With the rapid development of the deep processing industry of grain in Zhejiang province, the structural contradiction of grain purchase and sale has become an outstanding problem. Statistics show that Zhejiang imports 2.5-3 billion kg feed and industrial grain from other provinces each year, including 1.5 billion kg of corn. The bulk of the 700 million kg industrial grain consumed in the whole province each year relies on the supply of other provinces and autonomous regions, and the figure is on the increase, so it has a tremendous market space and potential.

The invisible market appeal has linked Zhejiang itself with the producing and marketing areas in Jilin and Jiangxi. Zhejiang has numerous aginomoto-production enterprises that consume 220,000 ton of early season rice each year. Whereas Jiangxi is a big province producing early season rice but has a poor market sale of the product. Under this circumstance, the Grain Bureau of Quzhou of Zhejiang Province next to Jiangxi seizes this opportunity to contact the grain department of Jiangxi and develop cooperation in the form of storing and selling on a commission basis. Jiangxi provides the grain and Zhejiang the storing and selling channels, with both sharing the profits. At last, they won a great success, which gave them a great joy.

Jilin is an important corn-producing province, while corn, a "scarce material" Zhejiang needs to import annually in large quantities. This September, the Zhejiang Provincial Reserve Grain Company and Nong'an County of Jilin Province reached an agreement of intent on cooperation to store and sell 350,000 tons of corn on a commission basis.

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