China to invest $1.5 Billion in Argentina
13 July 2011 According to the report, the farms will mainly produce soybean, corn and other agricultural products, which will be sent back to China where construction work is said to start later this year.
Heightened foreign investment in agriculture will create more demand for crop inputs during the next decades.
The National Development and Reform Commission published guidelines on the development of the soybean processing industry in 2008, encouraging Chinese enterprises to build soybean processing facilities overseas.
As a result, Zhejiang Fudi Agriculture and the Agricultural Bureau of Heilongjiang jointly built a farm in Brazil in late 2008.
An expert from the soybean sector said building soybean farms overseas will not solve the problems facing China’s soybean industry. The expert said certain domestic companies obtained bank loans under the guise of importing soybean due to the tightened loan regulations.
These companies then lent out the funds obtained from the loans to profit from the discrepancy in interest rates. China’s soybean imports thus surged, resulting in inventory of seven million tons at port warehouses at present.
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