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China’s Land Purchases in Brazil

The cheap land in Brazil has attracted massive investment from foreign individuals and companies, including Chinese. By October 2010, China’s state-run Chongqing Grain Group Co., Ltd. had developed 800,000 mu (131,790 acres) of soybean plantation farmland in Brazil. It plans to reclaim one million mu (164,736 acres) more farmland, for a total investment of over 5 billion Chinese yuan (US$771 million), making Brazil China’s largest overseas soybean oil production base. In addition, Zhejiang Province’s Fudi Agricultural Co., Ltd. has invested 200 million yuan (US$31 million) in the purchase of 16,800 hectare of Brazilian land for a soybean plantation. Meanwhile, China National Cereals, Oils and Foodstuffs Corporation (COFCO), China’s largest state-owned food giant, has also shown interest. 

Ye Anping, an official from China’s Ministry of Agriculture, denied that the purchase is a land grab. “Local business enterprises’ land purchases overseas have nothing to do with the policies of the Ministry of Agriculture,” said Ye. At the same time, the Brazilian Embassy in China stated, “We welcome Chinese investment in Brazil.”

Source: China Review News, June 6, 2011