How will China feed its growing population? Here's some of their strategies of what they're doing to acheive it.
Already in Australia, we've seen acquisitions of farms, livestock, genetics and vertically integrated supply chains with which China aims to meet its future food demands.
This article is from AgFunder News which was based on a report released by Rabobank. Even though it's written from an American perspective, it offers some fascinating insights into China's food security strategies and how they're implementing them.
STRATEGIES TO FEEDING THE WORLD'S LARGEST POPULATION
There's a real 'sense of urgency' to feed China's 1.4 billion people leading to a significant number private and public purchases of food agri-business companies in the US.
The Chinese agri-food industry is modernising at a rapid rate.
Average Chinese crop yields are growing at a slower rate than global producers, hence the need to be an importer or grains and seeds.
Cash for buyouts to achieve food dominance and food security isn't an issue with China. An example being ChemChina recently bought Swiss based agri-chemical and seeds company Syngenta (it formed after Novartis and Zeneca merged) in a $43 Billion deal where it intends to de-list it from the Swiss Stock exchange. In another large deal, CITIC purchased Dow’s Brazilian corn seed operation including seed processing plants and research centers.
Meat consumption is rising in China but the country doesn't have enough cattle feed so its relying on imported stock feeds.
China may also be in a position to play a global role in the pricing and supply of agricultural products and inputs. Which has the potential to affect global supply and demand in their favour.
Its sheer size of an importer also allows China the power to dictate logistics and even food safety standards so basically its re-setting the game rules.
You can read the full article here. https://agfundernews.com/report-chinas-foreign-food-ag-acquisitions-set-increase.html
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