Claims of Chinese "land grabs" in
Africa, to grow food for importing, have
been overstated – for now - although
"this could be a longer term
motivation", Standard Chartered said.
China, a county with 9% of the world's
farmland, has attracted a string of
negative headlines over claims that it
is aiming to tackle its problem of
feeding its 1.3bn people, 20% of the
world's population, by importing food
from a swathe of farms purchased abroad.
Studies have identified China as the
major purchaser of farmland abroad, a
trend which has attracted caution for
the threat it poses to domestic food
security, and welfare of rural
communities, and prompted countries such
as Argentina and Brazil to place limits
on foreign ownership of land.
However, the scale of Chinese
investments in Africa, where high
poverty levels make the threat posed by
food exports particularly high, have
"been exaggerated", Standard Chartered
said, citing "limited evidence of
Chinese land grabs in Africa".
'Does not make economic sense'
While Chinese investments in African
agriculture had taken place, with
private enterprises making investments
of $3.5bn in the continent from 2006-12,
the extent of deals had often been
exaggerated.
China's ZTE Agribusiness, which was
reported to have bought 3m hectares of
land in the Democratic Republic of Congo
to grow oil palm, was actually investing
$880m in 200,000 hectares of land
worldwide, of which 100,000 hectares
might be in Congo, according to Standard
Chartered.
Furthermore, what agricultural
investments the country did make were
"not generally" for producing food to
export to China.
"Domestic infrastructure bottlenecks
contribute to high transport costs and
mean that even given high grain prices,
exporting grain back to China does not
make economic sense," StanChart analyst
Sarah Baynton-Glen said.
"Where Chinese production of
agricultural goods in Africa is
exported, such as sugar from Sierra
Leone and vanilla from Uganda, these are
not bound for China, but rather take
advantage of duty-free incentives for
export to Europe."
'Longer-term motivation'
Given the "relatively small size" of
Chinese investments in African
agriculture, "it is unlikely this is
part of a short-term strategic intent
related to Chinese food security", Ms
Baynton-Glen said.
Indeed, China's agricultural imports
from Africa are currently of non-food
goods, such as hides, cotton, tobacco
and wood, and account for a modest 4% of
total China-Africa trade.
However, given that Africa has 60% of
the world's uncultivated land, on World
Bank estimates, importing food from
Africa "could be a longer-term
motivation".
"Given Africa's potential, China is
likely to turn more towards it."
'Food exports essential'
This could work to the benefit of both
parties, given the benefits that a
better-developed agriculture sector
could present to Africa, of which more
than half its population is involved in
farming, and where only 10% of cropped
land is prepared using tractors.
"Developing Africa's food export
potential is essential for African
economic growth, given the central role
agriculture plays in the continent's
economy," Ms Baynton-Glen said.
"China has the technological know-how to
improve the competitiveness of Africa's
domestic production, increase farmers‟
profits and make food more affordable."
One note on this the neighbor who sold
the 8 quarters here is his deal.
10% down minus the legal and realestate
fees. Remainder late Nov.
So here is my thought, The chineese
imigrants family is now fast tracked by
immigration into Canada for $200k down
payment. By November he and his family
are Canadians. Stick the Canadian Farmer
and dissapear into Vancouver no
intention to come to Saskatchewan.
JMO but sure looks that way to me.
Africa, to grow food for importing, have
been overstated – for now - although
"this could be a longer term
motivation", Standard Chartered said.
China, a county with 9% of the world's
farmland, has attracted a string of
negative headlines over claims that it
is aiming to tackle its problem of
feeding its 1.3bn people, 20% of the
world's population, by importing food
from a swathe of farms purchased abroad.
Studies have identified China as the
major purchaser of farmland abroad, a
trend which has attracted caution for
the threat it poses to domestic food
security, and welfare of rural
communities, and prompted countries such
as Argentina and Brazil to place limits
on foreign ownership of land.
However, the scale of Chinese
investments in Africa, where high
poverty levels make the threat posed by
food exports particularly high, have
"been exaggerated", Standard Chartered
said, citing "limited evidence of
Chinese land grabs in Africa".
'Does not make economic sense'
While Chinese investments in African
agriculture had taken place, with
private enterprises making investments
of $3.5bn in the continent from 2006-12,
the extent of deals had often been
exaggerated.
China's ZTE Agribusiness, which was
reported to have bought 3m hectares of
land in the Democratic Republic of Congo
to grow oil palm, was actually investing
$880m in 200,000 hectares of land
worldwide, of which 100,000 hectares
might be in Congo, according to Standard
Chartered.
Furthermore, what agricultural
investments the country did make were
"not generally" for producing food to
export to China.
"Domestic infrastructure bottlenecks
contribute to high transport costs and
mean that even given high grain prices,
exporting grain back to China does not
make economic sense," StanChart analyst
Sarah Baynton-Glen said.
"Where Chinese production of
agricultural goods in Africa is
exported, such as sugar from Sierra
Leone and vanilla from Uganda, these are
not bound for China, but rather take
advantage of duty-free incentives for
export to Europe."
'Longer-term motivation'
Given the "relatively small size" of
Chinese investments in African
agriculture, "it is unlikely this is
part of a short-term strategic intent
related to Chinese food security", Ms
Baynton-Glen said.
Indeed, China's agricultural imports
from Africa are currently of non-food
goods, such as hides, cotton, tobacco
and wood, and account for a modest 4% of
total China-Africa trade.
However, given that Africa has 60% of
the world's uncultivated land, on World
Bank estimates, importing food from
Africa "could be a longer-term
motivation".
"Given Africa's potential, China is
likely to turn more towards it."
'Food exports essential'
This could work to the benefit of both
parties, given the benefits that a
better-developed agriculture sector
could present to Africa, of which more
than half its population is involved in
farming, and where only 10% of cropped
land is prepared using tractors.
"Developing Africa's food export
potential is essential for African
economic growth, given the central role
agriculture plays in the continent's
economy," Ms Baynton-Glen said.
"China has the technological know-how to
improve the competitiveness of Africa's
domestic production, increase farmers‟
profits and make food more affordable."
One note on this the neighbor who sold
the 8 quarters here is his deal.
10% down minus the legal and realestate
fees. Remainder late Nov.
So here is my thought, The chineese
imigrants family is now fast tracked by
immigration into Canada for $200k down
payment. By November he and his family
are Canadians. Stick the Canadian Farmer
and dissapear into Vancouver no
intention to come to Saskatchewan.
JMO but sure looks that way to me.
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