Land grab is a worldwide phenonomen mostly associalted with Africa but includes South American countries and now Australia. Food producing farmland with access to water is an increasingly valuable resource in a finite world with growing population and declining water resources. Realising this, the Chinese government has embarked upon a strategy encouraging Chinese companies to purchase farmland throughout the world. China is looking to invest billions of dollars to develop farming land in sprawling northern Australia to boost food security for the world's most populous nation. More than a quarter of all meat produced globally is now eaten in China. At 71 million tonnes currently, China's annual consumption of meat is more than twice that of the United States.
Chinese firms will invest directly in northern farms focusing mainly on beef, sheep, sugar and dairy and invest billions of dollars to transform vast tracts of undeveloped land in northern Australia for farming. While northern Australia has millions of hectares of underutilised land - as well as abundant water and good proximity to Asia - obstacles to development have included poor transport links and a difficult climate. The question of selling Australian land to a foreign state-owned enterprise has troubling implications
Qatar's Hassad Food which has holdings of 250,000 hectares and Singapore's Olam International are also among foreign companies that have bought up Australian farmland to boost their own national food security. In January, the government published a study into Australian agriculture which found that foreign firms controlled about half of the country's key food industries. However, overseas investors owned just 11 per cent of its farmland.
Australia is now a net importer of food and the resulting inflation has had an impact on food prices. ''It's not that you'll run out of food, it's the form of food that you'll be able to buy, and that is happening right now. How often do you see people who in the past bought the roast, now buy mince? Why? Because they can't afford the roast, but that was once a staple.'' said senator Barnaby Joyce.
In New Zealand the sale of a bankrupt dairy farm group to a Chinese firm has prompted fears of a foreign land grab. Presently, less than two percent of New Zealand farmland was owned by foreigners, mostly from Europe or America.
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Chinese firms will invest directly in northern farms focusing mainly on beef, sheep, sugar and dairy and invest billions of dollars to transform vast tracts of undeveloped land in northern Australia for farming. While northern Australia has millions of hectares of underutilised land - as well as abundant water and good proximity to Asia - obstacles to development have included poor transport links and a difficult climate. The question of selling Australian land to a foreign state-owned enterprise has troubling implications
Qatar's Hassad Food which has holdings of 250,000 hectares and Singapore's Olam International are also among foreign companies that have bought up Australian farmland to boost their own national food security. In January, the government published a study into Australian agriculture which found that foreign firms controlled about half of the country's key food industries. However, overseas investors owned just 11 per cent of its farmland.
Australia is now a net importer of food and the resulting inflation has had an impact on food prices. ''It's not that you'll run out of food, it's the form of food that you'll be able to buy, and that is happening right now. How often do you see people who in the past bought the roast, now buy mince? Why? Because they can't afford the roast, but that was once a staple.'' said senator Barnaby Joyce.
In New Zealand the sale of a bankrupt dairy farm group to a Chinese firm has prompted fears of a foreign land grab. Presently, less than two percent of New Zealand farmland was owned by foreigners, mostly from Europe or America.
Source
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