China’s largest food company building Dubai soft commodities hub
Cofco International Ltd., the trading arm of China’s largest food company, is building a soft commodities hub in Dubai as the new location gives it better access to more sugar producing and consuming regions.
Marcelo de Andrade, head of that business, has relocated to Dubai from Brazil to establish the trading hub, he said in an interview at the Dubai Sugar Conference this week.
About 10 employees will trade sugar, coffee and cotton and Cofco’s Dubai office will soon move to the Dubai Multi Commodities Centre, where gold to diamond traders are located.
“We are trying to implement the same concept we have in sugar to other businesses,” de Andrade said, commenting on coffee and cotton. “We need to work more efficiently, be more focused, improve our origination.”
The trading hub will give Cofco easier access to sugar producers such as India and Thailand, as well as to deficit areas in the Middle East and Asia. It will also allow for easier dealings with the head office in Geneva and China, where the parent company is located. Cofco already had small operations in Dubai, with an office in the Jebel Ali Free Zone.