Belt and Road will reshape global food supply chains
Agriculture is becoming an important component of China’s Belt and Road Initiative
China is increasing its investments in arable land and agricultural companies abroad. It has purchased arable land from 33 countries -- more than any other country in the world -- and has spent 91 billion dollars over the past decade acquiring nearly 300 foreign companies in the agriculture, chemicals and food sectors. Chinese foreign investment in farming, forestry and fishing grew fivefold during 2010-16.
Our judgement
A growing middle class demanding more and better-quality food, and a worsening shortage of arable land, will drive China to source more of its agricultural products abroad. Fear of international price volatility drives acquisition of entire supply chains, while fear of dependence on the United States will drive diversification, creating opportunities for alternative suppliers.
See CHINA: Belt and Road will reshape food supply chains - January 14, 2019