中文

VV: the Only Private Company Designated as DCE Delivery Warehouses

05/23/2019

Company News

It is time to reap summer crops.

Lately, Dalian Commodity Exchange (hereinafter referred to as DCE) published a notice on an adjustment to designated delivery warehouses of 9 varieties including maize. It is specified in the notice: VV is designated as a non-Northeast-China branch of maize delivery warehouses, where a dynamic premium and discount policy is adopted.

(Source of photo: DCE website)

VV has had three own granaries designated as DCE delivery warehouses (the first two were designated to be soybean and maize delivery warehouses in 2015 and 2017 respectively). In addition, it has a soybean delivery warehouse designated by its holding company Heilongjiang Huahe Agricultural Technology Co., Ltd. in Beijiang, Heihe City. Altogether, VV has four delivery warehouses. This indicates that VV is the only private company whose granaries are designated to be DCE maize delivery warehouses and also marks that VV has been focusing on and targeting at its main business--"grain and food in a broad sense" and that its plan of developing both depth and breadth of the entire industry chain "from farming to serving inclusive" has started to work out.

Delivery warehouses are said to show the comprehensive strength and authority of a company in the industry. To own a delivery warehouse helps a lot in enhancing the company's brand awareness and escalating its say in the industry. Meanwhile, the delivery warehouse can bring a package of stable economic benefits including warehouse profits, hedge returns and benefits from transfer of warehouse receipts for the company while saving its financial cost, yielding collaborative effects and controlling spot market risks and inventory risks in business management. As a food manufacturer with its own delivery warehouse, VV can better ensure quality grain source and food materials under control, producing quality food.

(VV Group Headquarters Building)

Previously, designated grain delivery warehouses were mainly administered by state-owned grain companies. VV shows its strength in grain reaping and storage with the four granaries designated to be delivery warehouses one after another.

Public data show that in recent years, VV has set up warehouses and plants in four regional center cities, namely Xuzhou as the main wheat producer in the Huang-Huai-Hai Plain, south of Henan as the main quality peanut producer, Jiamusi as the quality rice producer and Suihua as the main non-GMO bean producer one after another, resulting in a warehousing scale of 2 million tons at the moment, which will reach 3 million tons during the "13th Five-Year Plan" period. Its reaping and storage bases precede others in domestic grain and oil industry regarding size and modernization.

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