Food & Agribusiness Talking Points 20-05-2016


Kazakhstan to inherit 1.9 billion U.S dollars from China to improve food
Chinese companies are set to invest up to 1.9 billion U.S dollars into the Kazakh food processions industry. The money will be funneled into specific food categories such as “tomato, chicken and meat processing plants”. Kazakhstan is eager to welcome this investment, seeing it as a good opportunity to help the negative effects of falling oil prices on the economy. Kazakhstan currently holds the position of the eighth largest wheat exporter in the world, but its ability to capitalise upon the agriculture resources are hindered by its soviet-era agriculture industry. Chinese company’s decision to invest in the Kazakhstan agricultural product system is in line with China’s desire to help promote the “Belt and Road Initiative”. Click here to read more.

Chinese firm given 2,500 Acres in Uganda for farming
The Ugandan government has granted the a Chinese company 2,500 acres for agricultural production in Luweero, a city in the Butambala sun county. The multi-billion dollar deal will be emphasised upon areas such as “rice farming, poultry, horticulture and fish farming”. The project will also cover agribusiness, value addition, renewable energy and agro-machinery. Minister Tress Bucyanayandi demonstrated his belief in the project, stating that this agricultural park will be an “important instrument for transforming the community”. Urging the locals to take advantage of the opportunity. Luo Hen, lead invester of the Chinese Ke-Hong Group estimates that the project will fund up to @220 million into the project, creating up to 20,000 job opportunities. Click here for the full article.

Australian Agribusiness Special Advisor Impressed with China Facilities
Rob Delane, Department of State Development agribusiness expansion special advisor, toured local Chinese facilities this week and commented that China is ten steps ahead of the game in terms of agribusiness. Mr. Delane visited an abattoir and feedlot fitted to Exporter Supply Chain Assurance System (ESCAS) requirements, built solely for the purpose of receiving Australian cattle. He stated that there appears to be no abating interest in Australian beef in China, with no questions surrounding consumer demand in the PRC. The problem currently facing Australians is that China is able to build physical infrastructure quicker than producers can develop the biological infrastructure, Mr Delane articulated that Western Australia needs to focus on building its herds and realize that the opportunities in Asia are real and ready. Click here for the full article.

Chinese State-Owned Agricultural Trader Observes High Interest in US Partnerships
COFCO Agri chief executive Matt Jansen stated Thursday that the Chinese state-owned agricultural trader is finding plenty of interest from potential US crop handling partners who are enthusiastic to boost sales in China. Although Jansen declined to say how many companies COFCO Agri is in serious discussions with, he did say that he sees “a lot of people who are really interested in accessing China. Whether they are a willing seller of their business is another story.” Recently COFCO have embarked on an aggressive expansion into the international grain trading market, having invested over $3 billion in March to buy Noble Group’s agribusiness and a large stake in Dutch grain trader Nidra. Click here for the full article