In today’s talking points: China’s agriculture group New Hope looks towards Australian expansion ; China looks to modernise its agriculture ; Heat goes from Chinese farm investment
China’s agriculture group New Hope looks towards Australian expansion
$14 billion Chinese conglomerate New Hope Group has set its eyes on an Australian expansion despite new curbs on foreign ownership of farmland. China’s largest privately-held agricultural group said that it had invested A$1 billion since entering Australia a few years ago. The group is also investing A$600 million in a China-Australia industrial park in China’s Zhejiang province. New Hope is only one of dozens of Chinese companies that have been investing heavily in Australia’s agricultural sector over the last five years with Chinese companies now owning approximately 1.5 million hectares of farmland.
Read more at Financial Times
China looks to modernise its agriculture
Although China’s economy is not currently agriculturally based, it was some decades ago and the country it now re-shifting focus towards the importance of agriculture for the economy. In the State Council’s new five-year plan, the country is aiming to achieve ‘agricultural modernization’ by the year 2020. The project aims to improve the quality of farm production and efficiency in supply as well as striving for food security. The government will also be providing fiscal and financial support to the agricultural sector.
Read more at Yibada
Heat goes from Chinese farm investment
Andrew Forrest suggests that the heat will come out of Chinese investment in Australian agriculture. In the 1950s, Australia was concerned about American investment investment in the Australian car industry, and now the mining magnate and cattle producers worried that Australians in the future will be “whingeing there is not enough Chinese investment”. On the other hand, former Howard government trade minister Mark Vaile stressed that the investment relationship with China was slowly maturing, and it is crucial for more management expertise in the control of agricultural land investments.
Read more at Yahoo News