Milling & Baking News - December 28, 2010 - 30

International 

World trade in grains likely to rise at
2% annual pace during next five years

reflecting the prospect for reduced
abandonment in Canada and Russia after the past summer's extreme
LONDON - An average annual of wheat, maize and barley fell short weather. The Council added, "The
rise of 2% in world trade in grains of expected consumption. This tighten- area likely to be planted to maize for
(wheat and coarse grains) was fore- ing was so in face of slower growth of the next U.S. crop will crucially decast for the next five years in a study industrial use for making ethanol in the pend on the price relationship with
by the Secretariat of the International United States. That slowing, it said, will soybeans."
Reflecting the meeting in Perth,
Grains Council. The Council, in ex- limit the annual rise in grain use to 1.5%,
the Council took particular note of
amining the outlook through 2015- compared with 2% previously.
The Council noted that the sub- unusual weather conditions ruling
16, pointed to a likely tightening in
maize supplies in the next five years, stantial fall in 2010 output in the in Australia.
"Although wheat production is
even though industrial use will be Commonwealth of Independent
States, especially Russia, was lead- officially placed at a record, severe
down from prior years.
The I.G.C. pointed out that the ing to a shift of nearly 30 million drought in Western Australia resulted in sharply reduced yields,
new five-year supply and
while in eastern states excesdemand projections include
World grain trade
sive rains will lead to conrice for the first time. It said
250
(in million tonnes)
siderable downgrading," the
that world supply and de* **
225
I.G.C. said.
mand for rice is expected to
The Perth meeting included
remain "broadly in balance
200
a review of the Grains Trade
over this period with yield
175
Convention, 1995. It was
improvements likely to
agreed that certain aspects of
raise output and with con150
'96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11
the convention should be resumption rising in line with
Crop year ending
viewed "with the aim of makpopulation."
Source: International Grains Council
*estimate **forecast
ing any necessary changes to
World stocks of rice, the
study indicated, are likely to increase tonnes in wheat and barley exports improve its effectiveness and scope."
Welcomed at the meeting as a new
in the period, and trade in rice was to other suppliers, notably the Unitforecast to gain by some 5 million ed States, Argentina and Australia. I.G.C. member was the Kingdom of
tonnes from the current level near World trade in grains this year was Saudi Arabia.
The government of Australia
31 million tonnes, "driven mainly by projected at 241 million tonnes, marginally above the previous year. A was warmly thanked for hosting
demand from Asia and Africa."
The Council sessions, its 32nd likely fall in wheat trade in 2010-11 the Perth meetings and associated
events. Also thanked was the Degathering, were held in Perth, West- will be offset by a gain in maize.
"Having risen by 120 million partment of Agriculture and Food of
ern Australia, under the chairmanship of Kilian Greter of Switzerland. tonnes in the previous three years, Western Australia.
One day of meetings was devoted
I.G.C. members gave particular at- global carryover stocks of grain in
tention to the sharp advances in 2010-11 are expected to decrease by to the International Grains Forum cograin prices since the Council last some 60 million tonnes, half of this hosted by the Australian government
met in June as well as the continu- due to tightening maize supplies," and the Western Australia Department. The forum was opened by Joe
ing volatility of prices, "only partly the Council said.
In looking to 2011-12, the Council Ludwig, Australian minister for agriattributable to changes in market
said the global wheat area was ex- culture, fisheries and forestry. Some
'fundamentals. '"
The Council said world supplies pected to increase by 2%, partly in 200 participants from government
were shrinking in 2010-11 as production response to higher prices but also and industry attended the forum. MBN

Equity group acquires stake in Chinese bakery chain
STOCKHOLM, SWEDEN - EQT
Greater China II has acquired 65% of
Qinyuan Bakery, one of the leading
bakery chains in Southwest China
with a market share of approximately
40% in its two main markets, namely
Chongqing and Guiyang. Qinyuan
has a network of 223 stores, 4 bakery
plants and approximately 2,100 employees and its products include pastries, cakes, cookies, beverages, mooncakes and rice dumplings.
The transaction is expected to take
place over a two-year period, with
Qinyuan's founding entrepreneurs
retaining the remaining 35%. The
30 / December 28, 2010 Milling & Baking News

founders, Congmei Liu and Zexiang
Chen, established Qinyuan in 1989.
"Qinyuan is a leading and trusted Chinese bakery brand in a fastgrowing industry and this fits well
into EQT Greater China's investment
strategy," said Martin Mok, partner
at EQT Partners in Hong Kong. "The
founders have, over the 21 years in
operation, built a very good business both in terms of growth and
profitability. When entering the next
development phase, EQT Greater
China will contribute its industry
knowledge from the retail sector
but also from the European bakery

sector in which EQT has significant
experience."
According to EQT Greater China,
the bakery market in China is forecasted to exhibit significant growth
prospects for the coming years and
the Chinese consumption behavior for
bakery products is tracking the historical patterns observed in other more
mature markets in Asia. EQT Greater
China said it initially will focus on expanding Qinyuan's store footprint in
current geographies, leveraging on the
current strong market positions. Other
strategic initiatives include enhancing
store productivity, expanding the festive products business and entering
new markets. MBN
bakingbusiness.com / world-grain.com

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - December 28, 2010

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