Apr 29, 2010
China Buying Land in 40 Countries to Produce Food Destined For China
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
According to the president of the China National Agricultural Development Group Corporation, Zheng Qingzhi, his organization controls a yearly budget of US$ 2 dedicated to purchasing farmland in other countries where agricultural commodities can be produced and then shipped back to China to feed its population. The development group, which has direct connections with the state government of the largest agricultural state in China, has already purchased farmland on three continents.
In Brazil, the Chinese officials are particularly interested in purchasing land in Goias and Bahia where soybeans and corn can be produced. Their goal is to ship the commodities directly to China thus avoiding the multinational grain companies that they view as just costly middlemen.
The state run agency already has operations in 40 different countries including Brazil, Argentina, Peru, Congo, Zambia, Sudan, Tanzania, Guinea, Benin, and others. In Tanzania, they have purchased thousands of hectares of farmland. They produce chickens and eggs in Zambia and rice in Argentina, Peru, Benin, and Guinea. In Senegal, they have invested in fishing and are the large foreign owned company in the country employing 2,000 people.
The Chinese insist that they are not there to just produce food, but to help in the transfer of technology, to build schools and health clinics and to respect local laws. They view their investments as a way to help the host country develop a modern agriculture.
Not everyone agrees with the Chinese claims that they are just trying to help other countries develop. Their critics include the United Nations and the Food and Agricultural Organization (FAO). The director of FAO, Jacques Diouf, recently alerted African governments of the possibility of renewed colonialism only this time at the hand of the Chinese. He warned that the commodities produced on these newly acquired lands would primarily be shipped back to China with little benefit to the local populations.
The Brazilian Congress has legislation pending that would limit the amount of land a foreigner can purchase in the Amazon Region to just 3,800 hectares. The legislation does not limit the amount of land that can be purchased outside of the Amazon Region.