Soaring profits in the ethanol and oilseeds sectors allowed COFCO subsidiary China Agri-Industries Holdings to report strong profits for the first half of this year, with revenue up 9% YoY.
Profits in the biochemical and biofuels division soared from HK$153.7mn (US$19.6mn) last year to HK$753,6mn (US$96mn). This was primarily due to strong ethanol production in China this year amid better margin, following the government’s decisions to slap import tariffs on denatured ethanol and dried distillers’ grains (DDGS) in 2016. This saw China become a net exporter of ethanol every month since the beginning of 2017.
Meanwhile, profits in the oilseeds processing sector were boosted by weak global soybean prices, despite poor Chinese demand for soybean meal and oil through the first half of the year.
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