BERLIN — Germany's Africa policy coordinator on Thursday blamed China's practice of buying up land in the Horn of Africa for contributing to the devastating drought ravaging the region.
Guenter Nooke told the daily Frankfurter Rundschau it was clear that "this catastrophe is also man-made".
"In the case of Ethiopia there is a suspicion that the large-scale land purchases by foreign companies, or states such as China which want to carry out industrial agriculture there, are very attractive for a small (African) elite," he said.
"It would be of more use to the broader population if the government focused its efforts on building up its own farming system."
He said that the Chinese investments were focused on farming for export which he said can lead to "major social conflicts in Africa when small farmers have their land und thus their livelihoods taken away."
"Not everything the Chinese are doing in Africa is bad," Nooke said.
"Chinese investment has perhaps an advantage: it will show how industrial farming in Africa can be carried out effectively."
He said that Germany supported a gradual phase-out of European agriculture subsidies so African farmers could have a shot at exporting their produce but admitted that there was still strong resistance.
Somalia is the Horn of Africa country worst affected by a prolonged drought -- the region's worst in 60 years -- that has put some 12 million people in danger of starvation and spurred a global fund-raising campaign.
The catastrophe has also hit parts of Ethiopia, Djibouti, Kenya and Uganda.
Rabobank report: China's increasing investments in South American agribusiness
http://farmlandgrab.org/post/view/18990
NEW YORK, July 28, 2011 /PRNewswire/ -- A new report by Rabobank's Food & Agribusiness Research and Advisory (FAR) department examines the exponential rise of Chinese investments in South America, particularly in Brazilian and Argentine agribusiness.
Highlights of the report, released today, include:
China's increasing investment in South American agriculture reflects a combination of factors
The volume of investment projects by Chinese companies in South America has been expanding exponentially since 2007. Brazil in particular provides an enormous potential market for Chinese exports, and has historically been a key partner for China in the energy, manufacturing, and other sectors.
China's investment rationale: agricultural production and logistical infrastructure
China is aiming to secure the supply of agricultural products, especially grains and oilseeds, as it cannot meet its own demand for them. Several agriculture-related deals in South America – including its large concentration of soybean production and vast quantity of available land and water resources – address China's food industry needs.
China's entry strategy: from direct land access to a 'leasing' scheme
Banned from buying land outright, Chinese investors have changed their model to one in which deals are structured as infrastructure investments in exchange for crop offtake, rather than direct investment into farmland.
Flow of deals in South America, particularly in Brazil, expected to continue
China has an ongoing need to secure soybean and corn supplies that matches well with South America's productive strengths. With grain stocks at historically low levels, the world will continue to look to South America for incremental production. Brazil has more resources that could be put into crop production than any other country in the world.
NEW YORK, July 28, 2011 /PRNewswire/ -- A new report by Rabobank's Food & Agribusiness Research and Advisory (FAR) department examines the exponential rise of Chinese investments in South America, particularly in Brazilian and Argentine agribusiness.
Highlights of the report, released today, include:
- China's investment projects in South American agriculture reflect a combination of factors: its interest in securing long-term food supplies and expanding its sourcing options; a move to diversify investment portfolios from US treasuries into commodities; and a possible response to an internal supply-demand imbalance
- China is further developing its historical trading relationship with Brazil, particularly through investments in oil, energy, minerals, and increasingly, agriculture
- Due to stricter regulation of foreign land ownership in Brazil and Argentina, China has changed its investment model, investing in infrastructure rather than land in exchange for crop offtake
- The flow of deals with Brazil is expected to continue, provided that a more balanced trade relationship follows; the outcome will have profound effects on Brazil's political and economic trajectory, and will shape how China pursues relationships in the rest of South America
China's increasing investment in South American agriculture reflects a combination of factors
The volume of investment projects by Chinese companies in South America has been expanding exponentially since 2007. Brazil in particular provides an enormous potential market for Chinese exports, and has historically been a key partner for China in the energy, manufacturing, and other sectors.
China's investment rationale: agricultural production and logistical infrastructure
China is aiming to secure the supply of agricultural products, especially grains and oilseeds, as it cannot meet its own demand for them. Several agriculture-related deals in South America – including its large concentration of soybean production and vast quantity of available land and water resources – address China's food industry needs.
China's entry strategy: from direct land access to a 'leasing' scheme
Banned from buying land outright, Chinese investors have changed their model to one in which deals are structured as infrastructure investments in exchange for crop offtake, rather than direct investment into farmland.
Flow of deals in South America, particularly in Brazil, expected to continue
China has an ongoing need to secure soybean and corn supplies that matches well with South America's productive strengths. With grain stocks at historically low levels, the world will continue to look to South America for incremental production. Brazil has more resources that could be put into crop production than any other country in the world.
The Australian | August 03, 2011
Plan for China to invest in agricultural business rather than buy the farm
Plan for China to invest in agricultural business rather than buy the farm
http://farmlandgrab.org/post/view/19029
Siobhain Ryan
CHINESE companies could be encouraged to invest in Australian agricultural businesses instead of buying up farms under a new foreign investment model based on the practice in the mining sector.
Trade Minister Craig Emerson proposed the approach yesterday as a way of addressing public concerns over foreign ownership of farmland, while leaving the door open for investments that boosted agricultural productivity and sated the growing Chinese appetite for food imports.
"I think that there are many ways of approaching this issue. It doesn't mean that China, in order to attain food security, needs to own large tracts of land in Australia," Dr Emerson said. "It doesn't own all the minerals in Australia. The people of Australia own the minerals."
Dr Emerson said China had bought into mining ventures and there were similar opportunities on offer with Australian agribusinesses.
"Wouldn't it be great if we can envisage a future where there is extra production of beef and sheep meat in this country, which is good for our farmers, good for regional development and good for helping to meet China's food security needs. Why would you pass up that opportunity?" he asked.
Controversy over the extent of foreign landholdings in Australia spilled over into the Senate last month, triggering a Coalition-led inquiry into the issue.
The government has commissioned investigations into the level of foreign ownership of rural land and agribusinesses, which are due to report later this year, in response to public disquiet. But it still faces calls, from the NSW government and others to review the scale of offshore investment in productive farmland.
Nationals Senate leader Barnaby Joyce warned that Chinese companies which bought into agribusinesses such as sugar mills could still exert undue influence over Australian farming.
They could become a price setter for the myriad small local farmers tied to a specific regional mill because they could not afford to send their produce elsewhere.
"I'd say that controlling the centralised processing sector can be almost more dangerous than owning the land. It's a backdoor way of controlling vast tract of land," Senator Joyce said.
The Chinese company COFCO said last month it had taken majority control of Tully Sugar mill in north Queensland.
Siobhain Ryan
CHINESE companies could be encouraged to invest in Australian agricultural businesses instead of buying up farms under a new foreign investment model based on the practice in the mining sector.
Trade Minister Craig Emerson proposed the approach yesterday as a way of addressing public concerns over foreign ownership of farmland, while leaving the door open for investments that boosted agricultural productivity and sated the growing Chinese appetite for food imports.
"I think that there are many ways of approaching this issue. It doesn't mean that China, in order to attain food security, needs to own large tracts of land in Australia," Dr Emerson said. "It doesn't own all the minerals in Australia. The people of Australia own the minerals."
Dr Emerson said China had bought into mining ventures and there were similar opportunities on offer with Australian agribusinesses.
"Wouldn't it be great if we can envisage a future where there is extra production of beef and sheep meat in this country, which is good for our farmers, good for regional development and good for helping to meet China's food security needs. Why would you pass up that opportunity?" he asked.
Controversy over the extent of foreign landholdings in Australia spilled over into the Senate last month, triggering a Coalition-led inquiry into the issue.
The government has commissioned investigations into the level of foreign ownership of rural land and agribusinesses, which are due to report later this year, in response to public disquiet. But it still faces calls, from the NSW government and others to review the scale of offshore investment in productive farmland.
Nationals Senate leader Barnaby Joyce warned that Chinese companies which bought into agribusinesses such as sugar mills could still exert undue influence over Australian farming.
They could become a price setter for the myriad small local farmers tied to a specific regional mill because they could not afford to send their produce elsewhere.
"I'd say that controlling the centralised processing sector can be almost more dangerous than owning the land. It's a backdoor way of controlling vast tract of land," Senator Joyce said.
The Chinese company COFCO said last month it had taken majority control of Tully Sugar mill in north Queensland.
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