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"China (People's Republic of China) and South Africa could find each other in terms of the export of grain and oil seeds in the interest of both countries," Dr. Pieter Mulder, deputy minister of Agriculture, Forestry and Fisheries said.

Dr. Mulder was addressing a dinner which was held in Johannesburg for a Chinese Sinograin delegation which is currently visiting South Africa. Sinograin is a Chinese company which purchases and distributes grain and oil seeds on behalf of the Chinese government. The chief executive officer of the company is a member of the Chinese State Council which is the equivalent of the South African Cabinet.

South Africa had a record maize harvest with a huge surplus. Many farmers may go bankrupt in a year with record yields because the over-production has had lower prices as a result. Without new markets for the future, whether in Africa or in China, the grain industry will be suffocated as a result of the growing supply.

"Because the government at present excludes maize from ethanol production, new markets for the grain industry have to be sought. China is definitely such a market. With regards to possible grain exports to China, South Africa has a location advantage as well as a price advantage. We can deliver top quality grain to China faster that most other countries," Mulder said.

South African agricultural exports to China have increased from R298 million in 2005 to R1254 million in 2009. It however did not include any grain exports.

"The South African grain industry is capable to sustainable produce more than which is consumed nationally and by neighbouring countries. That is why food security is not threatened if new markets are aggressively sought for our grains," Mulder said at the dinner.