Cargill expands Chinese technology potential

29/06/05 Cargill has announced that it has finalized the purchase of part of Peking University Green Technology Co. Ltd. (PGT)’s properties, which includes all the intellectual properties around the production, sales and marketing of food ingredient systems. The purchase will allow Cargill to leverage PGT’s deep customer knowledge and food system expertise to further develop China’s food industry and better serve Chinese consumers.

A food ingredient system is a blend of different food ingredients, such as emulsifiers and texturizers that provide critical functions, e.g. texture or taste, for a food or beverage product. The food ingredient systems market is an emerging industry in China. PGT has established itself as a pioneer in this industry through developing strong and in-depth relationships with its key customers.

China’s food market has experienced explosive growth in the past five years. In 2003, China’s GDP grew 9.1% to US$1.4 trillion while the Chinese food industry achieved a 17.6% growth to total US$150 billion. It is expected that the overall food industry in China will likely continue to grow at a pace of more than 10% a year in the next five years.

Peking University Green Technology Corporation (PGT) is a high-tech enterprise established at the end of 2000, with investment by Peking University. The company is currently specializes in developing and producing food ingredient systems primarily for the dairy industry, and employs approximately 110 employees. Due to the recent change to its business strategy PGT has decided to dispose of part of its properties including its food ingredient systems.

Cargill is an international provider of food, agricultural and risk management products and services. With 105,000 employees in 59 countries, the company is committed to using its knowledge and experience to collaborate with customers to help them succeed.