Food & Agribusiness Talking Points 04-01-2016

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Exports to Korea Rise

Exports to Korea have risen as tariffs have fallen with the next stage of the Korea-Australia Free Trade Agreement taking force. Exports of fresh cherries have risen five thousand per cent following the January first cuts. Fresh, chilled and frozen beef is one of Australia’s largest exports to Korea worth some $1.07 Billion AUD, the current tariff rate of 34.6% will drop to 32% from the original 40% before the introduction of the Free Trade Agreement. Nuts and Brussel Sprouts are also benefiting from the Free Trade Agreement with tariffs considerably comparing to pre agreement rates. Click here for article.

Cofco buy out Noble Agri                                                                                              

In further moves to show its position as a world force, Cofco has followed up its initial 51% share in Noble Agri, paying $750 million to take a 100% stake in the Fortune 500 Company. The company will be renamed Cofco Agri and will according to former Archer Daniels Midland boss Matt Jansen “a strong step towards our guiding vision…world class global agri-business”. The move will give some much needed capital for Noble Agri to help balance their books. Click here for article.

Rural E-Commerce boom in China

According to Alibaba, China is experiencing a boom in e-commerce in rural areas, with 780 million villages having online shopping transactions exceeding 10 million renminbi. This is an increase of 268% on the year, with Zhejiang, Guangdong and Jiangsu seeing the largest growth. Villages with large volumes of e-commerce are called “Taobao Villages”, where generally up to 100 businesses or 10% of household are involved in e-commerce, some 780 of these villages exist around the Chinese provinces. Click here for article.