Duxton’s Agri Bits and Pieces Vol. 206

QUOTE OF THE WEEK

Australian superannuation fund managers should “show some leadership” and invest in agriculture, says Victorian Agriculture Minister Peter Walsh. Mr Walsh said capital investment would help Victoria significantly increase food and fibre production and that would come from a mix of sources, including domestic and foreign money.

The super funds are an interesting creature. I’d like to see them invest more in the production systems. I could be cynical and say they effectively drive the share market and the CBD property market in Australia. It would be good if one of them actually broke out and showed some leadership and went into something a bit more productive than those two particular markets.

Capital investment into agriculture is really important and I don’t think there’s ever been a better time to invest in agriculture. We’ve got this massive opportunity.

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CHINESE TARGET CATTLE STATIONS

China’s ravenous demand for Australian beef could soon lead to some major cattle station purchases, with one of ­several Chinese importers, Snow Dragon Group, looking to buy land.

Snow Dragon, owned by the Xuelong Industrial…

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Vietnam Update – October 2014

ECONOMIC UPDATE

Economic indicators in September continued to point out a cyclical recovery with improved GDP, manufacturing expansion, low inflation, stable currency and trade surplus.

GDP growth has accelerated to 6.19% in the third quarter of this year, from 5.09% in the first quarter and 5.42% in the second quarter.1  For the first nine months of the year, the economy grew 5.62%, faster than the 5.14% pace during the same period last year. Of which, the Industry and Construction sector posted the strongest increase of 6.42% YoY, followed by Service sector of 5.99% YoY and Agriculture sector of 3% YoY.1

HSBC’s Purchasing Manager Index recorded growth after four consecutive months of decline, reaching 51.7 in September from 50.3 in August, driven by the acceleration of new orders. September YTD Industrial Production Index also exhibited a similar trend to increase 6.7% YoY, up from 5.4% YoY of the same period last year.1 The manufacturing sector is expected to continue their strong growth momentum in the fourth quarter on the back of competitive advantages in terms of labour, electricity and water costs, as well as…

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Duxton’s Agri Bits and Pieces Vol. 205

QUOTE OF THE WEEK

China produces half the world’s pork and buys two-thirds of the world’s globally traded soybeans to feed its domestic pigs. Twenty years ago, China imported 1.6 million metric tonnes of soybeans; last year it imported 60 million metric tonnes. The billion dollar question now, as China looks to ensure it has sufficient food available to keep its people well fed and happy, is whether it will continue to increase feed imports or will allow greater imports of finished product.

National Australia Bank’s Regional (Asia) Head of Food and Agribusiness, Patrick Vizzone, presented what he sees as the key factors for success when dealing with China at last week’s BeefEx conference in Australia.

China’s leadership is fine tuning the concept of self-sufficiency and the result will be a more pragmatic and sustainable footing that increasingly leverages the benefits of trade. Witness in this respect the upcoming FTA that Australia is about to sign with China. So landmark deals like Shuanghui International’s acquisition of Springfield Foods, the US’s largest pork producer and processor, are not about technology transfer. It is not…

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