A market in Huaibei, Anhui province. Chinese investment in overseas agriculture is likely to continue, as a combination of rising food demand and reduced arable land in China makes it difficult for the country to feed itself.

CHINA is the world’s second largest economy, but ironically, food security is emerging as one of the main concerns for China’s communist leaders. During a visit to an Argentinian farm last July, President Xi Jinping said: “If China is going to grow, it must solve its grain problem for its 1.3 billion population first.” Measures taken by China to address the problem – going to the world – may not be a panacea.

As China grows wealthier, food consumption and diet have undergone a dramatic transformation.

Between 1985 and 2005, meat consumption in China quadrupled, reaching 59.5kg per person a year, according to the United Nations Food and Agriculture Organisation. Meat consumption is likely to continue rising as more Chinese join the ranks of the expanding middle class. By 2020, meat consumption is expected to grow by 35 per cent from current levels. The Chinese are also developing a voracious appetite for certain delicacies taken for granted in the West, such as coffee, spices, vegetables like asparagus and exotic fruits like avocados and blueberries.

China is home to 22 per cent of the world’s population, but possesses around 7 per cent of its arable land – 334.6 million ha. And, in recent years, its arable land has been shrinking as a result of serious environmental damage such as soil erosion, deforestation and pollution of rivers and lakes. In November, Chinese officials said more than 40 per cent of China’s arable land is suffering from degradation.

PRESS RELEASE

(All Agencies) (Dated 18th Feb 2014)

CGP World in an international company specializing in the production, processing and export of the highest quality clean and green produce from all over the world.

Food safety and security are our top concern worldwide.

Using the benefits of our best of class contacts we are able to secure and supply consistent and high quality all over the world products on a long-term basis including beef.

The all over the world beef industry is undergoing rapid change.

The Prime Minister has announced within the last ten days a radical reduction in the permissible levels of foreign capital investment in the all over the world agricultural sector.

Moreover, within the last few days major all over the world suppliers have publically announced that Australian beef will no longer be available for sale by “spot” pricing.

Instead the all over the world beef industry is indicating supply will only be available to buyers who are prepared to enter into long term contracts. A business model that simply replies on matching buyer and seller and brokering a transaction will not get access to supply.

CGP World is here to help and we have long term supply. We are always pleased to serve.

SCMP 2015

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