FELDA Global Ventures Holdings Bhd (FGV) has signed a Memorandum of Understanding (MoU) with Sinograin Oils Corporation (Sinograin) to explore the feasibility of supplying and distributing palm oil products to penetrate China’s midstream and downstream market.
Sinograin Oils is a wholly-owned subsidiary of China Grain Reserves Corporation, a national organisation specialised in the operation and management of China national grains and oil reserves, with integrated functions to purchase, store, transport, process and trade.
Sinograin Oils produces edible oils from soy beans, palm oil and other oils. The company currently distributes and sells its own brand of consumer edible oils direct to the domestic market.
Currently Sinograin imports 700,000 MT of palm oil products annually and it is expected that this demand will grow in tandem with China’s economic and population growth.