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China Reaches Into Russia's Far East in Hunt for Crop Supplies

  • JBA to build soy plant, grain port and lease farms in Russia
  • Building logistics, facilities will encourage grain production
Canada's Wheat Harvest As Output Seen Increasing
Photographer: Shannon VanRaes/Bloomberg

JBA Holdings, a joint venture between companies including Heilongjiang Agriculture Co. and Joyvio Group, will invest $100 million over three years to build a soybean crusher and grain port in Russia amid a push by Chinese firms to diversify their sources of crop supplies.

The JV will also lease 100,000 hectares (247,100 acres) of farmland in Russia to grow wheat, corn and soybeans, Ren Jianchao, JBA’s chairman, said in an interview in Harbin on Tuesday. Russia’s far east has vast farmland area and borders China, which, along with low local taxes, should reduce planting costs, Ren said. JBA will also build storage and a grain port in Russia’s Zarubino that could handle 3 million metric tons of grain a year, said Ren.