BEIJING, CHINA — Agricultural technology company Origin Agritech announced May 23 that it has entered an agreement with Yunnan Feeding Co. to provide 20,000 tonnes of 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 3,100 renminbi per tonne, or 62 million renminbi in total (US$9.2 million).
Origin Agritech, based in Beijing, China, previously announced a 50,000 tonnes supply agreement in April. The combined value of the two orders is about $32 million. This order backlog does not include any impact from the previously announced collaboration with BaoDao Feed Ltd.
“It is quite gratifying to see the feedstock industry’s excitement and demand for our new corn variety, NEC,” said Gengchen Han, PhD, chairman of Origin Agritech. “We are focused on operations and ramping up production to catch up with the quickly increasing demand.”