As Grain Crunch Continues, Chinese Companies Eyeing S. America, Russia As Farm Sites - AFP

[hatrack]

China is looking at farms in places like Russia and South America as it seeks new ways to feed the world's largest population amid a global grain supply shortage, state media said Tuesday.

Chinese companies exploring overseas agricultural resources that are in short supply will help balance domestic demand and supply, the Beijing Morning Post reported, citing the agriculture ministry.

Xie Guoli, a senior trade promotion official with the ministry, told the paper China had built up its agricultural technology know-how and the government would in the future enhance policy support for such initiatives. "Developing the rich water and soil resources in regions like South America, Australia and Russia can lower Chinese companies' production costs," said Zhang Xichen, head of the Suntime Group, which runs agriculture projects with Mexico and Cuba.

The newspaper said soaring international grain prices and the record high domestic inflation rate were the main factors behind the drive.

EDIT

http://www.terradaily.com/reports/China_looks_abroad_amid_global_grain_shortage_report_999.html

[phantom power]

1. Did anybody else hear on NPR yesterday...

some microbrewer saying (paraphrase) "I'm competing with Chinese businessmen with suitcases of cash, buying up wheat."

Or something to that effect. Seemed a little bit nuts, even to me. But the world does seem to be getting nuttier these days.