World Agriculture
Developments, trade, data, and topics in world agriculture
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Vietnamese company to expand banana cultivation to export to ChinaHoang Anh Gia Lai Agriculture (HAGL) Jsc, Vietnam-based agriculture company, has announced to invest in another 5,000 ha land in Cambodia to grow bananas to export to China China has a demand for 15mn tonnes of bananas per year. (Image source: Shumpei Sano/Flickr) The company is expected to invest about US$42mn in the project. According to HAGL, most of the bananas will be exported to China by ship or road. The initiative is in line with Vietnam's aim to increase the export business of its agricultural products. China has a demand for 15mn tonnes of bananas per year. Doan Nguyen Duc, CEO of HAGL Agrico, said that with the recent move, the company is expected to supply about 240,000 tonnes. Apart from China, Duc also hopes to shift 20 per cent of the company's banana exports to South Korea and Japan, as reported by VnExpress International. HAGL aims to harvest more than 106,000 tonnes of bananas and earn revenues of about US$73mn and US$42mn in gross profit this year, said the source. With about 13,500 ha of farmlands in Vietnam, Laos and Cambodia, HAGL is also a major producer and exporter of dragon fruit and chilli in the region. In 2016, the company's fruit, banana, chili and dragon fruit crops fetched revenues of US$71mn, accounting for around 49 per cent of HAGL's total revenues. Published: 2018-8-23 | Responsible Editor: Xie Jinli
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Russia offers 2.5 million acres of land to Chinese farmers, but will it ease China's soybean shortage?Russia offers 2.5 million acres of land to Chinese farmers, but will it ease Beijing's soybean shortage? by Sarah Zheng Russia has made 1 million hectares (2.5 million acres) of arable land available to foreign investors - and while that could be boon for Beijing as it struggles with limited supplies of soybeans in its trade war with the US, analysts are concerned about the quality of the plots available. Valery Dubrovskiy, director of investment for the Far East Investment and Export Agency, a non-profit organisation, said on Tuesday that several Chinese companies had already expressed an interest in the deal. “We expect most of the investment to come from China," he said. “We expect 50 per cent from China, 25 per cent from Russia and 25 per cent from other countries, like Japan and Korea ." The announcement means that all of the 3 million hectares of arable land in Russia's Far Eastern Federal District is now available to farmers, Dubrovskiy said, adding that the space is suitable for dairy farming or the growing of crops, such as soybeans, wheat and potatoes. While this reflects a significant increase in cooperation between Chinese agribusinesses and the Far East in recent years, observers are sceptical about the quality of the land being offered to foreign operators. Dmitri Rylko, general director of the Russian consultancy Institute for Agricultural Market Studies, said most of the fertile land in the Far East region had already been taken, although Chinese businesses had increasingly been signing leases and other temporary agreements. "[The] best lands are occupied and have been heavily exploited by domestic farmers, so if they want more, it will be predominately in remote and low productivity areas," he said. Moscow has been trying for years to attract foreign investment to develop the region's economy, including handing out free plots to Russians in 2016, said Jiayi Zhou, a researcher at the Stockholm International Peace Research Institute. "[But] basic infrastructure and transport are poor. Peri-urban land, which is better connected to the market, may be more attractive to developers, but less available," she said. With the China-US trade war showing no signs of abating, and after Beijing slapped 25 per cent tariffs on soybeans imported from America, the legume - for which China has a voracious appetite - is very much in the firing line. Chinese farmers may therefore be attracted by the offer of a huge swathe of cheap arable land in Russia's main soybean growing region. Beijing has already significantly reduced its soybean purchases from the US, and as a result bought a record 850,000 tonnes of them from Russia between July 2017 and the end of May, according to figures from the Russian agriculture agency Rosselkhoznadzor. But that represents only a fraction of the 800 million tonnes of soybeans China has imported so far this year, according to the latest figures from its customs agency. The agriculture ministry in Beijing said earlier it had ramped up domestic soybean production “significantly” to deal with the threat of shortages, and would make a further 1 million hectares of land available for growing the crop over the next two years. Zhang Xin, a Russian studies expert at East China Normal University in Shanghai, said that while Russia's offer of agricultural land was a sign of the apparent desire on both sides to increase cooperation, the deal still had obstacles to overcome. “In the Far East in particular there has been political resistance, including from residents, to Chinese companies renting land for agricultural production," he said. "[Their] concerns regard the large influx of Chinese workers and a dissatisfaction with Chinese farming methods … like using too many pesticides and fertilisers ." And while the decision to make the land available to foreign investors was probably made in Moscow, “whether it can be implemented smoothly depends on local acceptance in the Far East”, he said. Besides crops, the two countries have also boosted cooperation in the agricultural sector with Russia's purchases of pesticides and farm machinery from China. “But we need investment in the sphere of deep processing of agricultural products, rather than the usual cultivation of crops," Sinegovskiy Mikhail Olegovich, head of the economics team at the All-Russian Research Institute of Soybean. Published: 2018-8-23 | Responsible Editor: Xie Jinli
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Vineyard acquisition raises French concerns about Chinese investmentNikkei | 5 Juy 2018 Vineyard seizures highlight French worries about Chinese investments by TALLULAH LUTKIN PARIS -- French authorities have seized 10 wine chateaux owned by Chinese conglomerate Haichang Group as part of an investigation into alleged illegal financial activities. Judicial police say they have found evidence of money laundering and the use of irregular documents in the acquisition of vineyards. The case comes amid concerns in France about foreign investors, especially from China, taking over large swathes of farmland. The winery seizures were triggered by investigators' suspicions that fake deeds and the possible identity theft of a French solicitor may have been involved in a 30 million euros ($34.9 million) loan from the French branch of Industrial and Commercial Bank of China (ICBC) and concerns about suspicious operations in offshore companies. Maxime Delhomme, a lawyer for Haichang, told French news agency AFP, "We have appealed against the ruling, which is only a seizure preventing us from selling and does not indicate guilt ." Haichang owns a total of 24 wine chateaux in the Bordeaux region which it bought for 55 million euros. Investigators have been concerned about the investments since a 2014 news report suggested that Chinese public money had been improperly used in the purchases. According to the report, Haichang and another company from the northeastern Chinese city of Dalian had been given 268 million yuan ($40.3 million) by local authorities to invest in foreign technology but instead used the funds to purchase French vineyards. Chinese investors have been buying up French vineyards at a breakneck pace over the last five years. An estimated 160 chateaux are now under Chinese ownership, up from 30 in 2012. The vast majority of acquisitions have been in the Bordeaux region, which is well-known among Chinese consumers. According to local estate agents, Chinese buyers are also attuned to the beauty of the chateau buildings in the area. Some 3% of Bordeaux's wine-growing region is now owned by approximately 75 Chinese investors. Chinese investors, including Haichang, have mostly focused on small chateaux priced below 10 million euros. Recently though, some investors have been looking to buy more prestigious vineyards. Last December, Hong Kong businessman Peter Kwok bought a Saint-Emilion grand cru winery for 30 million euros. A large part of the production from these wineries is destined for export, as Chinese appetites for imported wine show no sign of cooling off. The number of Chinese consumers buying imported wine more than doubled between 2011 and 2016, reaching 48 million people, according to research consultancy company Wine Intelligence. Bordeaux vineyards sold 84 million bottles in China in 2017, 30% of the region's total wine exports. It is not just the wine sector which is attracting the attention of Chinese investors. In 2016 and 2017, Hongyang Group, a company whose primary business is the manufacture of fuel dispensers, bought 2,600 acres of agricultural fields in central France. A lack of arable land is pushing Chinese investors to purchase agricultural land across the globe. This trend is a source of concern for the French agricultural sector, which is already struggling to recruit a new generation of farmers. Local rural land agencies called Safer regulate the sale and purchase of agricultural land, but investors have found loopholes in the system to bypass its scrutiny. "Our goal is to have a right of inspection on all transactions," senior Safer official Emmanuel Hyest told the Nikkei Asian Review. "That doesn't necessarily mean we will intervene every time, but we want there to be complete transparency ." In an address to 100 young farmers at the Elysee Palace in February, President Emmanuel Macron said: "Agricultural land in France is a strategic investment on which our sovereignty depends. We cannot let foreign powers buy hundreds of acres of land without being aware of their purpose." He promised to impose "regulatory barriers" on acquisitions of agricultural land by foreign investors. A new law regarding agricultural property is in the works and is scheduled to be discussed in parliament early next year. Legislators must try to reconcile demands from farmers' unions to subject agricultural purchases to state control -- as is the case with strategic sectors like defense -- with laws on property rights and free enterprise. Not everyone in southern France has a hostile view to foreign investors. In the Bordeaux region, inhabitants have come to see the benefits of their Chinese neighbors, who are restoring some historic wine mansions and keeping on local staff to maintain a high-quality standard. What is more, wine exports from Bordeaux are showcasing the region to Chinese tourists who could give the local economy another boost. Published: 2018-7-11 | Responsible Editor: Xie Jinli
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Chinese Taste Westernized Western Australia Optimistic about Cold Tibetan Mutton Export to ChinaScott Boyle, a breeder in York City, pointed out that Chinese tastes are changing rapidly and food consumption is becoming more westernized, ACB News reported. WA producers should consider how to market cold storage to them sheep meat. Currently, China does not import chilled mutton. Mr. Boyle said that during the visit he realized that all imported meat was frozen and needed to be thawed and then deboned or processed before being frozen for sale. Chinese local mutton can't do this, only products with higher hygiene standards like Australian mutton can. "But it destroys quality, so the challenge is that if the Chinese eat more Westernized, they will gradually appreciate the benefits of refrigerated food and be willing to pay for it," he was quoted as saying by Farm Weekly. Boyle currently owns a 20,000 sheep farm in York. He said that his inspection experience in China prompted him to decide to expand the scale of production, "there is real demand there". The Australian Meat and Animal Commission (MLA) and government trade departments may explore opportunities. The recent memorandum of understanding (details) on mutton export between Western Australia and China and the free trade agreement will provide an excellent platform for the export of cold storage products to China. Western Australia Mining Nomadic Legislative Council member Mark Lewis said building a long-term relationship and setting long-term goals was the first step in the right direction. It is clear that Western Australia now needs to consider the Chinese refrigerated products market and enter this high-value field. According to the initial export data compiled by the Western Australian government, the top five markets for Western Australian mutton accounted for 55% of the export volume in the 2014/15 fiscal year, while China accounted for 22%, far higher than Saudi Arabia (10%), which ranked second. Kimbal Curtis, WA's Senior Research Officer, Agri-Food, discusses the latest industry data and trends this week as industry exchange forums are held across the state. He pointed out that the rising global consumption demand for mutton is pushing up the export price of Australian mutton. "I think the demand will continue to rise for some time to come, especially in the Middle East and China". Judging from the situation in the past two years, the mutton market is in short supply, and the industry prospect is very positive. With the support of MLA and Australian processor V & V Walsh, the Western Australian delegation visited the asset facilities of V & V Walsh partner Heilongjiang Manor Group, and learned extensively about retail and food distribution channels and mutton production systems in Beijing, Heilongjiang, Inner Mongolia, Shanghai and other places. An Agri executive in Wellard said that the size of the Chinese market and the scale of demand is eye-opening. Wellard Agri's parent company, Wellard Group, Australia's largest livestock exporter, is currently planning a listing on the Australian Stock Exchange with the assistance of investment bank UBS. Sources said the IPO size could be A $2-A $0.3 billion. Investment presentations have been held in Sydney and Melbourne this week, with Hong Kong next. Time: 2015-08-04 08:46 | Author: Xiong Da | Source: First Agricultural Economic
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China considers investing in Venezuelan agriculture to ensure domestic food securityChina eyes food security options in Venezuela China is considering investment in Venezuela's agriculture industries as part of a global strategy to secures diverse sources of food supplies for its burgeoning population. Published: July 26, 2013 at 1:23 AM CARACAS, Venezuela, July 26 (UPI) -- China is considering investment in Venezuela's agriculture industries as part of a global strategy to secure diverse sources of food supplies for its burgeoning population. Senior Venezuelan officials announced after recent talks in Beijing Chinese investment could cover 30 million hectares of land in the Latin American country. Venezuelan agriculture has suffered under frequent state interventions -- from outright nationalization to implementation of agricultural policies criticized as being removed from reality. Oil-rich Venezuela is recovering slowly from a recession the government blames on weather vagaries, including frequent drought conditions. Opposition critics say state mismanagement of agriculture is partly to blame. Venezuelan Vice President Jorge Arreaza indicates his talks in Beijing gave him hope joint ventures involving China could bring great benefit to a sector seen to be performing well before capacity. Beiing has been touting its agricultural prowess and optimum exploitation of land resources. Critics cite China's environmental problems as an indication that progress has been patchy. Venezuela under former President Hugo Chavez pursued close collaboration with China in energy, defense and security, and technology. Chavez died of cancer in March, soon after handing over power to hand-picked successor Nicolas Maduro. President Maduro's inner circle includes Arreaza, husband to the late Chavez' eldest daughter Rosa Virgina. Before he was appointed vice president under Maduro, Arreaza was minister of science and technology. Arreaza indicated that bilateral talks on agricultural collaboration advanced after Chinese Vice President Li Yuanchao visited the country in May. "Venezuela has 30 million hectares of prime land and great agricultural potential ." Arreaza said Venezuela's agriculture suffered from lack of inaction by its absentee landowners. He blamed "bourgeois" landowners for the problem. Both Chinese and Venezuelan officials say China has every reason to be driven by the need to build agriculture-based alliances worldwide. China's own soil has limited potential, which has been further diminished by recent urbanization in rural areas. Arreaza discounted criticism of Chinese interest in Venezuela's land, blaming it on opponents inspired by "U.S. imperialism" and past U.S. policies in the region. Both Chavez and Maduro have blown hot and cold on normalizing ties with Washington. One of the ideas being pursued in Venezuela will be modeled after a Chinese model for establishing special economic zones to stimulate the economy, he said. Maduro's government aims to continue Chavez's ideal of reversing a prolonged neglect of Venezuelan agricultural sector that began with the discovery of oil in the 1950s. Right up to the start of the oil boom, agriculture, fishing and forestry earned more than half of the national income. By 1988 that ratio dropped to 5.9 percent of Venezuela's gross domestic product, the rest supported by industrialization and oil exports, both of which declined in later years due to a spate of nationalizations by Chavez. Topics: Hugo Chavez, Nicolas Maduro Read more: http://www.upi.com/Science_News/Technology/2013/07/26/China-eyes-food-security-options-in-Venezuela/UPI-29031374816180/#ixzz2aK6y4XvW (Contributed by Zhang Hongzhou, Special Editor)
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Study on Reducing Food Loss and WasteJune 5 is World Environment Day. On the same day, the World Resources Institute (World Resources Institute) and the United Nations Environment Programme (UNEP) jointly released the "Food Loss and Waste" (Reducing Food Loss and Waste) research report, saying that 1/4 of the food produced by the global agricultural system is lost or wasted. This poses a serious challenge to reducing the hungry and meeting the food needs of the world's rapidly growing population. The report shows that more than half of food loss and waste in developed countries such as Europe, the United States, Canada and Australia occurs during the consumption stage. In contrast, in developing countries, about two-thirds of food loss and waste occurs during the harvest and storage stages. The world's annual land area used to produce lost and wasted food is equivalent to the land area of Mexico, consuming about 28 million tons of chemical fertilizers, and the inefficient use of chemical fertilizers is related to climate change and the increase in marine dead zones where aquatic life cannot survive due to severe pollution. On the other hand, if the greenhouse gas emissions from the production of the world's annual lost and wasted food are compared to the emissions of a country, then it will become the third largest greenhouse gas emitter after the United States and China. According to the current global food consumption trend, the global food demand will be 1.6 times that of 2006 by 2050, but if the current huge food loss and waste are reduced by half, the gap will be reduced by 1/5. Reducing loss and waste is therefore a key link in the transition to more sustainable food security. Food production requires energy, water and land resources. Under the severe challenges of increasingly scarce natural resources and increasingly serious environmental problems, wasting food is equivalent to wasting natural resources and destroying the environment. The report recommends setting universal standards for governments and private enterprises to measure and report food loss and food waste; setting global, national and corporate reduction targets for food loss and food waste; expanding investment to reduce food losses during the harvest stage in developing countries; and establishing institutions and organizations in developed countries to reduce food waste. http://pdf.wri.org/reducing_food_loss_and_waste.pdf (Responsible editor: Shixin)