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Harvesting opportunities on foreign soil (5)

By Wu Yong (China Daily)

10:44, December 05, 2012

But Liu also has another problem - how to sell the grain he grows in Russia back into China.

Russia traditionally exports grain to the Middle East and North Africa. But the Far East, including the foreign farm operators there, can make the best of its resources only by exporting to Asia-Pacific region.

Meanwhile, China still restricts the import of rice and corn, although it has become much easier to import soybeans. Only two State-owned enterprises, China National Cereals, Oils and Foodstuffs Corporation and Jilin Grain Group, are currently authorized to import grain.

Big companies like Huaxin can obtain some concessions in the grain import business, but other Chinese companies have to sell all their harvests to local dealers.

But it may not be necessary to sell all the grain grown in Russia back to China either. "As a nation with a population of 1.3 billion, China should have the insight to ensure its own grain supply. But if Chinese farmers in Russia sell their produce to other countries, they can also help China by contributing to overall global food security," said Zhang Zhongjun, assistant representative of the UN Food and Agriculture Organization in China.

Zhou Huiying and Han Junhong contributed to this story. Contact the writer at wuyong@chinadaily.com.cn

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