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China looks abroad amid global grain shortage: report

by Staff Writers
Beijing (AFP) April 29, 2008
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.

Grain prices have risen by 60 percent on the global market in the first three months of the year, adding to inflationary pressure in China.

Inflation in the first quarter hit a near 12-year high of 8.0 percent, the report said.

Another problem that is worsening the situation is shrinking farm land in China, where rapidly growing cities are turning traditional farming areas into industrial zones or residential areas.

Official data showed that the amount of arable land fell by 40,700 hectares (100,500 acres) to 121.73 million hectares last year, getting closer to the "critical" level of 120 million hectares Beijing has vowed to retain.

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Concerns resurface over Italian mozzarella as farms quarantined
Rome (AFP) April 29, 2008
Health concerns over Italian mozzarella cheese resurfaced on Tuesday as more than 100 buffalo farms around Naples were quarantined amid fears of potential dioxin contamination, the government said.







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