|
 |
|
||||||||||||||||
Corn Procurement & Logistics
As we are engaged in the corn processing business, the development of corn procurement & logistics network would enable the Group to manage raw material procurement in a more timely and effective manner.
- In recent years, strong demand from different industries keeps China’s corn price remain at high level.
- The cost of raw material such as corn or corn starch accounts for more than 70% in the Group’s cost structure. The Group’s strategy of penetrating into the corn originations to source raw material can secure corn supply for the Group’s production and at the same time, lower the Group’s overall corn procurement costs further.
- A smooth grain circulation system is important to China. With the state’s effort to standardise logistics market and accelerate corn procurement’s infrastructure establishment, the environment for and the quality of corn logistics services are expected to improve gradually.