Food alliance formed

China's largest agricultural trading and processing company, COFCO, has enlisted Japanese trading house Itochu Corp to help it prepare for possible increases in demand for grains and other food from around the world.

Itochu, Japan's fourth biggest trading company, said yesterday it and the Chinese company were discussing joint purchases of grains, dairy products and meat to boost their buying power in the international market, after signing a strategic alliance last month.

"China wants to increase purchases of food on the global market as domestic demand is getting pretty tight," Itochu Executive Vice-President Yoshihisa Aoki told a news conference.