As one of the two wings of listed company VV's main businesses, the grain business finally welcomes its "highlight moment" in 2020, after years of accumulation.
(Automated production workshop of Liuchaosong)
According to the relevant person in charge of VV’s grain business, since February 2020, "Liuchaosong" flour, the currently the main product of VV’s grain business, has reached the production/sales of 25,000 tons with extremely limited production factors, which marks an increase of nearly 40% over the same period last year. In an interview with the media, Cai Tian, VV’s spokesperson, revealed that due to the impact of the COVID-19 outbreak, since February, there has been a shortage of flour packaging supplies, and the transportation has been severely disrupted, which have greatly affected production and sales. With the recent victory in epidemic prevention and control, the shortage of packaging materials has been gradually eased. Based on this, the production/sales of flour are expected to not quite double.
It is reported that VV's flour processing and production is undertaken by VV Liuchaosong Flour Industry Co., Ltd., one of the top 50 wheat flour processing enterprises in China, with an annual flour production capacity of 300,000 tons. In 2016, VV invested RMB 150 million to build the leading modern flour production line in China, with a daily wheat processing capacity of 1,000 tons.
(Slogan in plant area of Liuchaosong)
Cai Tian, the spokesperson for VV, said that “Liuchaosong” flour was a brand founded in 1919, with a century-old history. It was also a main flour brand in the Huang-Huai-Hai Region centered on Xuzhou. VV Liuchaosong Flour Industry Co., Ltd. was selected as China's Model Unit for Healthy Grain and Edible Oil. After identifying grain business as one of the dual wings of VV's main businesses, four major grain collection, storage, processing, and logistics bases have been successively built in major domestic grain production areas. Fully relying on high-quality wheat resources, VV Xuzhou Grain and Oil Logistics Industry Park, located in China's core wheat producing areas, focuses on the cultivation of flour and flour processed products with "Liuchaosong" as the core brand, as well as wheat collection and storage and grain trade. Cai Tian indicated that since January this year, VV's grain business, especially flour enterprises, has witnessed booming production and sales. All products are in short supply. All kinds of small packaged 10-kilogram products of Tejing, Fuqiang, Teyi series and products of 5-kilogram products of Fuqiang, Xuehua and Teyi series are very popular with consumers, which have formed a "competitive product portfolio" with market competitiveness. After the COVID-19 outbreak, VV has contributed to stabilizing market prices by fully organizing production and ensuring market supply, in a bid to support epidemic prevention and control. Recently, as the epidemic winds down, the sales of VV flour will reach a new high.
