Written by Skagen

imagine: tfjglobalnews

On the live broadcast 19.05.2022, Miles Guo disclosed the food situation in China. He cited the information from one of the Brazil grain suppliers who used to do business with COFCO(full name:full name: China Oil and Foodstuffs Corporation), a major Chinese state-owned food processor, runs Communist China’s largest food stockpiling bases.

Chinese state-owned food processing company COFCO has some 310 huge silos in Dalian. (Photo by Shin Watanabe)

According to the Brazil supplier, in the 2-3 months at the beginning of this year, some of COFCO’s companies has purchased large quantities of grains from Brazil. Yet in the past two weeks, they are willing to pay a price that is 20% higher. It is unusual to offer a 20% higher price for grains and purchase everything he has.

Besides, the Brazil supplier has been in contact with the Chinese government since the UN asked them to collect grains demand data. He thought the grains China had purchased earlier were for reserves. Yet people from COFCO told him that the grains purchased earlier had been completely consumed. To be more specific: China has consumed 80-90% of the grains reserves that is meant for the future within the past 3-4 months!

By mid-2022, according to the U.S. Department of Agriculture, China will hold 69% of the world’s corn reserves, 60% of its rice and 51% of its wheat.

To mix metaphors, said Mile Guo, “Think about the life of your family: The food in your fridge is for tomorrow or the day after tomorrow, yet you ate it all last night. What are you supposed to eat today? So you must and have to buy more food. Will you be able to get food for tomorrow? Will you be able to pay for it? How about the day after tomorrow. It’s hard to imagine for the future life of the Chinese people.

Reference:

Miles Guo GETTR

Nikkei.com

Bloomberg