The Russian company Food Export Trade signed a long-term contract with the Chinese company Chongqing BAOSIN for grain supply

Production and export company “Food Export Trade” (part of the Russian group of companies New Land Grain Corridor, NLGC) and the Chinese state-owned company "Chongqing BOSIN Industries Development" have signed a long-term contract for the supply of grain, legumes and oilseeds produced in the Urals, Siberia and the Far East to the Chinese city of central subordination Chongqing.

This is the second long-term Food Export Trade contract signed with a Chinese state-owned company in 2023. In October, a twelve year contract was signed with state-owned China Chengtong in the period of the One Belt, One Road international forum. Long-term contracts for the production and supply of grain confirm China's high interest in building a strategic partnership with Russia in the field of food security. Not only is the number of major state players getting involved expanding, but also the geography. Chongqing is a centrally administered city with a population of over 32 million, a GRP of over US$400 billion and one of the most important commercial and industrial centers in southern China.
The long-term nature of the contracts allows NLGC and the industry as a whole to enter into long-term planning of production and investments in transportation, logistics and grain distribution infrastructure. The concluded contracts are a stable base for the development of 'contract farming' of grain in the Urals, Siberia and the Far East with the use of advance payment, formula pricing and complex agronomic support.

Grain cargo deliveries under the contract will be carried out within the framework of the "Grain +" logistics scheme: in special containers-grain carriers of the "land grain fleet" of NLGC Group of Companies in the opposite direction from Chongqing, which is also a large automobile manufacturing center, will be sent auto components for production in Russia and auto parts for service centers. Shipments with subsequent transfer and addressing of cargoes will be made to partner transport and logistics centers located in the Siberian and Ural Federal Districts.

This contract closes out the southern supply and Food Export Trade companies's portfolio of contracts for targeted volumes to China. In the future, the company will focus on building up the Middle East portfolio of contracts with the creation of grain distribution infrastructure in the region.

The Russian and Chinese sides also agreed on plans to develop the Zabaikalsk-Chongqing economic corridor with the support of the region's and China's leadership. Chongqing, the world's largest city and municipality in China, has enormous economic potential through rail, inland water, and air networks linking the central and western regions and the Yangtze River Economic Belt. In the current international environment, Chongqing is also an important geostrategic center and transportation hub connecting inland China with Southeast Asia, Central Asia and Central Europe.

“Food Export Trade” Production and Export Company is an authorized operator of the New Land Grain Corridor program for the development of "contract farming" of grain and main elevator infrastructure in the Urals, Siberia and the Far East. The company owns formula pricing technology, supports advanced crop science research, and holds export contracts.

Chongqing BOSIN Industries Development is a company directly subordinated to the State Committee for the Supervision and Administration of State-owned Assets of the People's Republic of China with private capital participation. The main direction of the company's activity is import-export operations in the field of oil products, grain and foodstuffs. As one of the few Sino-foreign joint ventures under the jurisdiction of the State-owned Assets Supervision and Administration Committee of the People's Republic of China, Chongqing BOSIN Industries Development receives full support from the government.