Yunnan will purchase 20,000 metric tonnes of Origin’s nutritionally enhanced corn
Beijing-headquartered Origin Agritech, an agriculture technology company, announced recently that the company and Yunnan Feeding Company have entered into a supply agreement, under which Yunnan will purchase 20,000 metric tonnes of Origin’s nutritionally enhanced corn (NEC).
Pricing will be based on the prevailing price of corn at the time of delivery but based on current market prices the deal would be valued at RMB3100 per metric ton, or RMB62 million in total ($9.2 million).
Origin had previously announced 50,000 metric ton supply agreement back in April of this year. The approximate combined value of the two orders is RMB217mm ($32 million). This backlog of orders does not include any impact from the previously announced collaboration with BaoDao Feed.
“It is quite gratifying to see the feedstock industry’s excitement and demand for our new corn variety, NEC,” said Dr Gengchen Han, Origin Agritech’s Chairman. “We are focussed on operations and ramping up production to catch up with the quickly increasing demand.”
