Most visitors to China know the larger cities, but marketing expert Ashley Dudarenok dives into Yunnan, this time the community-based agricultural markets that are so different from the cities.
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| Arthur Kroeber |
China may have to increase imports because its dependence on the use of ground water for grain production “isn’t going to be sustainable indefinitely,” said Arthur Kroeber, managing director of Beijing-based GaveKal Dragonomics Research, a financial advisory firm...
China may be putting off “inevitable” large grain imports for 10 to 20 years to enable the opportunity to “develop companies like Cofco as domestic alternatives to Cargill and give them some sense of security of supply,” Kroeber said.
While the government has limited expansion of corn-based industry to ensure priority for livestock, “it’s difficult to control demand for starch” or other corn-derived products because there’s a strong demand for them, he said. So “either we produce here, or buy from outside,” he said...
Most countries will find it a rather “sensitive matter” to either sell or give long-term leases for food production areas to other foreign entities, Kroeber said. Still, cash-rich Cofco can offer “very attractive terms,” he said.More about China's food strategy in Business Week.
