Itochu, COFCO to ally in global food buying-Nikkei

TOKYO, Aug 4 (Reuters) - Japanese trading house Itochu Corp (8001.T) and COFCO, China's largest agricultural trading and processing company, will tie up in global food purchasing, the Nikkei business daily reported on Monday.

The paper said Itochu and COFCO would jointly buy grains, dairy products and other goods from around the world, aiming to beef up their bargaining power through the alliance.

Itochu hopes the tie-up will help lower prices of food for the Japanese market, while COFCO aims to tap Itochu's global business networks and distribution channels, the paper said.

The companies are discussing details of the alliance, including cooperation in management of warehouses, expansion of sales channels for Japanese rice and other products, and support for Japanese food makers to operate in China, the paper said.

Itochu officials were not immediately available for comment. (Reporting by Sachi Izumi; Editing by Chris Gallagher)