Asians are buying up land in Africa
Sep 29th, 2009 | By admin | Category: Main NewsSouth Korean public corporation Korea Rural Community Corporation in October, sign a memorandum with the Government of Tanzania for the exploitation of the land area of 1000 sq. km. km - half for local farmers and a half for food production in South Korea. The corporation plans to produce in Tanzania, edible oil, wine, and starch. In coming years, Korea Rural Community Corporation intends to spend on mastering the first 100 square meters. km of land in Tanzania, about 100 billion won ($ 83 million).
representative of the Korea Rural Community Corporation Lee Ki Churl assures that the transaction will be beneficial to Tanzania: Some African countries export fruits and fruit juices are imported, exported and imported olives, olive oil, simply because the colonialists in the past have taught them to process agricultural products . We plan to create a zone of processing training center for Tanzanian farmers to transfer their technical knowledge and irrigation.
Another South Korean company Daewoo Logistics last year rented arable land in Madagascar for 99 years to grow corn and palm oil, which should have been delivered to South Korea. The company received at the disposal of 1.3 million hectares, accounting for almost half the territory of Belgium. In the western part of Madagascar 1 million hectares have been allocated under the maize crop, while 300 thousand hectares in the rainy eastern part of the island will be brought to the production of palm oil. Daewoo Logistics calculated that within 25 years the project will bring her $ 6 billion
Nevertheless giant Daewoo Logistics contract with the authorities of Madagascar was not destined to come true. At the beginning of the year in Madagascar there was a coup. Coming to power, the former mayor of the capital of Madagascar Henri Radzhoelina canceled the deal, which he calls one of the reasons for the coup. South Korean Daewoo Logistics was forced to announce the suspension of Madagascar to the contract.
large areas in Africa is buying not only South Korea but also other Asian countries. According to the newspaper The Globe and Mail, China bought 2.8 million hectares in the Congo under the plantations for palm oil. Earth in Sudan were transferred to Arab countries: Egypt, Jordan, Kuwait, Saudi Arabia. However, South Korea was able to get into Sudan, a record 690 thousand hectares of land under wheat, vegetables, livestock. Saudi Arabia has signed a deal for development of 500 hectares in Tanzania.
Government of India, which supports the acquisition of agricultural lands abroad as an alternative to buying food in the international market, 80 companies had issued loans for the purchase of 350 thousand hectares of land in Africa. Indian companies are buying up agricultural land in poor African countries to grow food crops and their subsequent export to India. The relevant transactions concluded in Ethiopia, Kenya, Madagascar, which is now expected to grow rice, sugarcane, oilseeds, maize, beans, tea, and even vegetables. Some companies are investing in projects on the cultivation of crops used for biofuel production.
company Karuturi Global Limited of India has signed an agreement with the Ethiopian government to purchase 850 thousand acres of land for growing grain, sugar cane. Already cultivated 30 thousand acres. The company also Karuturi Global Limited has become an area of Kenya. Through these two programs of the Indian company controls one of the largest banks in agricultural lands in the world. Varun Agriculture signed an agreement on agricultural production from 13 associations of local landowners in Madagascar. Totally the case of an area of 1 million 790 thousand hectares.
Experts Food Policy Institute in Washington noted that agricultural land abroad, mainly buying food-importing countries with limited resources, land and water, but with more financial opportunities, such as the Gulf States. Also, land assets abroad look for countries with large populations, faced with the problem of food security. And for this purpose they choose countries with low production costs. Most transactions are in Ethiopia, Ghana, Mali, Madagascar,Mozambique, Sudan and Tanzania.
UN experts on agriculture this summer to report on the buying of land in the poorest countries, which states that such a trend is fraught with dangerous consequences - backward countries simply can not feed their own populations. The Special Representative of the Food for the UN High Commissioner for Human Rights, Olivier de Schutter said that States should be one after another, and once someone buys the land, the others do the same thing. Mr. De Schutter cited the example of Sudan, where the situation with food is very heavy and where the six developed countries have huge plantations.
Experts of the Food and Agriculture Organization (FAO) noted that the first half of 2009 sold nearly 20 million hectares of agricultural lands, with an area exceeding half of the arable land in Europe. In 2008, rich countries have acquired or leased more than 10 million hectares. Approximately one fifth of the land purchased or leased, will be grown raw materials for biofuels. For this purpose, according to the U.S. Food Policy Research Institute, rich countries spend an annual $ 20-30 billion
Outsourcing in the field of food production will bring food security of investors and the poor - hunger and deprivation. renters will have to deal with the consequences of a very intensive farming - the impaired environment, exhausted land, water sources dried up, - warns Devinder Sharma, an analyst with the Indian Forum for Safety in Biotechnology and Food. General Director Jacques Diouf, FAO warns of the emergence of a new form of neocolonialism, in which poor countries will provide rich food at the expense of its starving population.
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