Germany’s KTG Plans Major Expansion of Grain Sales to China
Germany’s leading farming company, and one of the few listed farming operations in Europe, KTG Agrar, announced that it is planning a major expansion of grain and food sales to China after a unit of China’s Fosun International acquired a stake in the group.
KTG cultivates 45,000 hectares of GMO-free grains, rapeseed, soybeans, sugar beets and other GMO-free crops. It also owns the German trading house, C. Mackprang, and renewable and food processing operations.
KTG is targeting food sales to China of between €20 million and €30 million for 2015, and an increase in sales to between €100 million to €200 million per year over the next three years. Currently 80% of KTG’s sales are in Germany and 20% are exports, however, the group says that these changes could make China its biggest market.
These ambitious plans are announced after China’s Fosun International purchased a 9.03% stake in KTG through a Portuguese unit. Fosun has interests in e-commerce channels and a chain of 8,000 retail shops in China, which KTG aims to leverage to launch its products including breakfast muesli, GMO-free soybeans, malting barley, frozen foods, and potato products throughout China.