Asian Agribusiness Consulting

Zhanjiang helps Tibet grow tropical fruit

A truck loaded with 2,000 tree saplings of over 10 different varieties was sent to Tibet autonomous region from Zhanjiang in late April, for trial planting.

 The plants travelled the 3,000-kilometer journey as the result of an agreement between Zhanjiang-based South Subtropical Crops Research Institute and the Tibet Academy of Agricultural and Animal Husbandry Sciences.

 The two institutes aim to share germplasm resources used in the breeding and planting of crops.

 South Subtropical Crops Research Institute is a non-profit organization under the Chinese Academy of Tropical Agricultural Sciences, committed to the research and development of subtropical plant breeding, cultivation, and storage.

 According to institute's macadamia nuts research group leader Zeng Hui, it will be the first time that Tibet has attempted to plant macadamia nuts – which are usually grown in warmer environments.

 Thanks to early research, Zayu village of Zayu county and Baibung village of Medog county in the southeastern part of Tibet seem to be good places for experimental plantations because of the mild and rainy climate.

 Three experts from Zhanjiang worked together with local researchers to plant sweetsop, mango, dragon fruit and other rare and improved saplings, hoping that if successful it could improve agriculture system in the region.

 Local farmers were also given guidance and taught new growing techniques so that they could take advantage of market gaps and make more money.

    Source: China Daily Date: 2017-05-1

Premier Li visits villagers in Yellow River beach areas in Henan

With rain in the sky, Premier Li Keqiang visited villagers in the Yellow River beach areas in Fengqiu county, Xinxiang city of Central China’s Henan province, on May 8.

 In an area with insufficient infrastructure, Premier Li visited the homes of villagers and asked about their daily life and their agricultural production issues. The village has been listed for evacuation, and the Premier said he hoped they could move into new homes as soon as possible.

 Premier Li also visited a household that had moved from the Yellow River beach areas, with local government’s help, to Fengqiu.

 Premier Li talked with local officials, asking about the subsidies and cost of relocation.

 The resettlement could bring some real benefits to residents who moved from the Yellow River beach areas, Premier Li said.

Source: Xinhua News Agency Date: 2017-05-09

Vice Minister Chen Xiaohua visits Sri Lanka

Vice Minister Chen Xiaohua headed a Chinese delegation to Sri Lanka on 2-6 May 2017. He held talks with officials of the Ministry of Plantation Industries, Ministry of Agriculture and Ministry of Fisheries and Aquatic Resources Development of Sri Lanka respectively. They exchanged views on strengthening agricultural and fisheries cooperation, and reached extensive consensus.

 In his meeting with Hon. Navin Dissanayake, Minister of Plantation Industries, Vice Minister Chen stated that China and Sri Lanka have maintained friendly relations and a long history of agricultural cooperation. In recent years, bilateral trade in tea and aquatic products has kept growing, and business investment in agriculture has been progressing gradually. To further tap cooperation potential, Vice Minister Chen proposed that the two sides strengthen cooperation in the following areas: firstly, increasing exchanges on agricultural policies for deepened understanding and smooth cooperation; secondly, strengthening cooperation in agricultural technology, particularly in drawing upon each other's strengths in tea varieties breeding, planting, processing and marketing; and thirdly, intensifying cooperation in agricultural trade and investment and creating platforms for cooperation between enterprises of the two countries.

 Mr. Dissanayake extended a welcome to Vice Minister Chen and thanked China for its support and assistance in economic and social development of Sri Lanka. He agreed with Vice Minister Chen and expressed the aspiration to cooperate with China in research, personnel training, mutual recognition of testing results of tea laboratories and agricultural trade. 

 Hon. Wasantha Aluvihare, State Minister of Agriculture of Sri Lanka, welcomed the Chinese delegation and expressed his appreciation to China for its efforts in training Sri Lankan agricultural experts and conducting investment and technical cooperation projects in Sri Lanka. He hoped that the Chinese side could provide support to Sri Lanka in seed, hybrid rice technology, agricultural machinery and personnel training.

 Vice Minister Chen noted that China and Sri Lanka both attach great importance to agricultural development and have accumulated rich experience. China is willing to strengthen agricultural technology cooperation with Sri Lanka, especially in hybrid rice, and facilitate technical exchanges between agricultural research institutes from the two countries and the establishment of agricultural demonstration park. China will encourage Chinese enterprises to conduct training on agricultural machinery maintenance and technologies to promote application and extension. China will also increase exchanges on agricultural policies with Sri Lanka and intensify training for Sri Lankan technical personnel.

 In the meeting with Hon. Mahinda Amaraweera, Minister of Fisheries and Aquatic Resources Development of Sri Lanka, Vice Minister Chen stated that given solid foundation of bilateral fisheries cooperation, China is willing to deepen cooperation by promoting training cooperation between fishery institutes and sending Chinese experts to Sri Lanka to guide local fishery production. In addition, Vice Minister Chen suggested that the two sides cooperate in fishing, processing and logistics of aquatic products, and facilitate investment cooperation between enterprises. Mr. Amaraweera thanked China for its long-standing support in fisheries, especially in freshwater aquaculture, and looked forward to furthering cooperation with China in this regard. 

 During his stay in Sri Lanka, Vice Minister Chen visited the Tea Board, Tea Research Institute and Coconut Research Institute of Sri Lanka, learned the latest agricultural development in Sri Lanka, and listened to comments and suggestions on strengthening cooperation.

Source:Information Office, MOA Date:m 2017-05-10

Li gets close look at China-made tractor

Premier Li Keqiang receives an introduction to the Zoomlion 230-horsepower tractor from the company's deputy director, Wang Jinfu, in Kaifeng, Henan province, on Monday. China previously depended on overseas technology for such products.

Premier Li Keqiang called on Monday for further efforts to drive agricultural modernization and manufacturing upgrades amid China's economic transformation.

Li, during his inspection tour in Central China's Henan province, visited an agricultural machinery manufacturing plant in Kaifeng and climbed aboard on a newly made tractor developed using domestic technology.

The premier had previously proposed developing high-powered tractors to achieve technological breakthrough.

Li also visited people living in a floodplain.

The tractor company recently designed and began making the farm tractor, which is powered by a 230-horsepower engine — a product that used to be dependent on overseas technology.

Wang Hongmei, the company's office director, said the tractors are eagerly awaited in Northeast China as well as the Xinjiang Uygur autonomous region, where large-scale farming and deep plowing are common.

Li, boarding the tractor and learning in detail about its operation from Wang Jinfu, deputy director of Zoomlion, stressed that such technology upgrades should be more widely applied to agriculture modernization.

With almost all control panels inside the operator's cab, Wang explained that the tractor can be controlled with only one hand.

The application of big data as well as an internet platform also is used by the company for product information collection, as it also developed an internet monitoring platform for all of its machinery products across China.

Breakdown in any area of a machine will be monitored by the internet platform terminal, while such information and data platform are also used for Zoomlion sales.

The company has seen a consecutive increase in sales from January to April this year.

Henan province, located alongside the lower reaches of the Yellow River, has long relied on agricultural production.

On Monday, Li paid visits to several households in Lizhuang township along the Yellow River floodplain area, where in villages scattered in low-lying areas suffer frequent flooding. Li urged the relocation of these villages. The township has 18 villages undergoing such conditions.

Source: China Daily Date: 2017-05-09

Visiting Chinese delegation explores joint venture opportunities in Zimbabwe

HARARE — Zimbabwe and China's Zhejiang province on Friday signed two memorandum as the two countries push for more cooperation and fostering of joint ventures in sectors such as agriculture, agro-processing, manufacturing, pharmaceuticals, construction, energy, health and finance.

Minister of State for Harare Metropolitan Province Miriam Chikukwa signed a Friendship Memorandum of Understanding with the Vice Chairman of Standing Committee of Zhejiang Provincial People's Congress Wang Huizhong.

Secretary for Macro-Economic Planning and Investment Promotion Desire Sibanda signed a Memorandum of Cooperation with the Chairperson of the China Council for the Promotion of International Trade (Zhejiang) Wu Guiying, under which the Chinese will explore investment opportunities in Zimbabwe.

Wang is leading a high-powered delegation with more than 20 people from Zhejiang province which is exploring business opportunities with both the public and private sectors.

The delegation joined Zimbabwean government officials and the private sector for the Zimbabwe-China Zhejiang Investment Conference where they engaged with a view to establishing long term cooperation agreements.

"We expect them to invest in our economic blueprint Zimbabwe Agenda for Sustainable Socio-Economic Transformation priority areas in our Special Economic Zones (SEZs)," Sibanda told Xinhua after the signing ceremony.

He told the delegation that the government had come up with highly competitive SEZs incentives such as flexible labor laws, tax free holidays, duty free importation of essential raw materials which are not locally available and relaxed immigration rules for investors.

Wu said Zimbabwe and China were highly complementary of each other and announced plans to establish an office in Harare to promote cooperation between the two.

"As long as we join hands with each other, I believe that our symposium will bring more opportunities," she said.

Chikukwa said that the memorandum she signed sought to foster greater friendship between the two provinces and boost cooperation in various sectors of the economy.

Chinese Ambassador to Zimbabwe Huang Ping said he had once asked investors in Zhejiang why they were not investing in Zimbabwe and they had told him that they did not know much about the country.

"They always got negative information on Zimbabwe from the internet," he said, adding that it was time for China and Zimbabwe to transform their comparative advantages into fruitful cooperation.

Source: Xinhua Date:2017-05-08

Visiting Chinese delegation explores joint venture opportunities in Zimbabwe (2)

HARARE — Zimbabwe and China's Zhejiang province on Friday signed two memorandum as the two countries push for more cooperation and fostering of joint ventures in sectors such as agriculture, agro-processing, manufacturing, pharmaceuticals, construction, energy, health and finance.

Minister of State for Harare Metropolitan Province Miriam Chikukwa signed a Friendship Memorandum of Understanding with the Vice Chairman of Standing Committee of Zhejiang Provincial People's Congress Wang Huizhong.

Secretary for Macro-Economic Planning and Investment Promotion Desire Sibanda signed a Memorandum of Cooperation with the Chairperson of the China Council for the Promotion of International Trade (Zhejiang) Wu Guiying, under which the Chinese will explore investment opportunities in Zimbabwe.

Wang is leading a high-powered delegation with more than 20 people from Zhejiang province which is exploring business opportunities with both the public and private sectors.

The delegation joined Zimbabwean government officials and the private sector for the Zimbabwe-China Zhejiang Investment Conference where they engaged with a view to establishing long term cooperation agreements.

"We expect them to invest in our economic blueprint Zimbabwe Agenda for Sustainable Socio-Economic Transformation priority areas in our Special Economic Zones (SEZs)," Sibanda told Xinhua after the signing ceremony.

He told the delegation that the government had come up with highly competitive SEZs incentives such as flexible labor laws, tax free holidays, duty free importation of essential raw materials which are not locally available and relaxed immigration rules for investors.

Wu said Zimbabwe and China were highly complementary of each other and announced plans to establish an office in Harare to promote cooperation between the two.

"As long as we join hands with each other, I believe that our symposium will bring more opportunities," she said.

Chikukwa said that the memorandum she signed sought to foster greater friendship between the two provinces and boost cooperation in various sectors of the economy.

Chinese Ambassador to Zimbabwe Huang Ping said he had once asked investors in Zhejiang why they were not investing in Zimbabwe and they had told him that they did not know much about the country.

"They always got negative information on Zimbabwe from the internet," he said, adding that it was time for China and Zimbabwe to transform their comparative advantages into fruitful cooperation.

Source: Xinhua Date:2017-05-08

China eyes Uganda's agribusiness in new front

KAMPALA — Tucked away over 50 kilometers north of the capital Kampala, Chinese technicians continue to set up the first agricultural industrial park in the East African country.

In different parts of the country, Chinese experts advise local farmers on how best to make agriculture a lucrative business.

Back in the capital, Chinese enterprises at a one day China-Uganda business forum are networking to devise ways of setting up more businesses in the country.

Among the key discussions in the meeting attended by top Ugandan government officials and Chinese enterprises is the agriculture sector, the mainstay of the economy.

Agriculture is Uganda's main economic activity with over 70 percent of the country's population deriving its livelihood from the sector.

Government figures show that the sector growth 2014/15 was 4.4 percent with a contribution of 24 percent to the Gross Domestic Product. The growth was mainly on account of increased cash and food crop production.

Uganda is hoping, basing on the experiences back home, that the Chinese enterprises could set up businesses to boost growth in the sector.

Already some Chinese business people have set up shop. The locals are farming Chinese hybrid rice and fox-tail millet both on a small and large scale basis.

According to experts, the yield of Chinese hybrid rice is three times more than the local breed from one hectare of land. Similarly, the yield of fox-tail millet is two times more than the local breed, finger millet in the same acreage.

At the business forum, Evelyn Anite, minister of state for privatization and investment said Uganda welcomes Chinese enterprises into the agriculture sector with open arms, noting that government has set up many incentives to make the sector lucrative.

"That is one untapped opportunity that many investors have not gone into," Anite told the meeting convened by Uganda Investment Authority (UIA), a state run investment agency and the Chinese Enterprise Chamber of Commerce in Uganda.

Among the key incentives is that companies would enjoy tax free export on agricultural products. Those that bring into the country machinery that is geared towards adding value to agriculture would not pay tax on the equipment imported.

Jolly Kamugira, UIA executive director told the meeting that the companies also stand out to benefit from the different lucrative markets that the country has access to.

Uganda exports its agriculture products tax and quota free to the United States through the American Growth Opportunity Act. It has also access to the European Union market and other markets like China on tax and quota free basis.

In the region, Uganda supplies its agriculture produce to neighboring South Sudan, eastern Democratic Republic of Congo, Rwanda, Burundi and western Kenya.

According to UIA, the investment opportunities in the sector are in commercial farming, agro-processing, manufacturing inputs, cold storage facilities and irrigation among others.

Uganda is optimistic that with the conclusion of the ongoing transport and energy infrastructure projects, the cost of doing business in the country would go down enabling investors to recoup big returns.

Source: Xinhua Date: 2017-05-08

Nebraska serious about growing trade with China

In welcoming scores of Chinese and American business leaders to Omaha, Nebraska Governor Pete Ricketts said that he believes the state's relationship with China will grow.

"In China, we see the middle classes are increasing tremendously," Ricketts said on Friday. "That presents opportunities for us to expand the relationship. In Nebraska, we think long term."

"That's actually one of the things that is very similar between the Nebraska culture and Chinese culture -- emphasis on long term. That's why I think the relationship with China will grow," he said.

The governor said that China is the state's second largest trade partner outside of North America and one of the fastest-growing: "Nebraska exported $1.3 billion of products last year to China," he said.

Elaborating on the state government’s effort to improve education, regulation and the tax system, Ricketts invited business leaders to consider investing in the state.

"We seek those Chinese companies who look to invest in Nebraska to help them to grow their business in the US, help them to leverage our regulatory and tax environment, our central location and the shared culture value," Ricketts said.

Compared to other states such as Texas or California, Chinese direct investment in Nebraska is relatively small. The notable Chinese investments include a $3 million investment in shipping and logistics by Easyway International of Xi'an, Shaanxi province, and a $25 million investment in Worldlawn Power Equipment by Jiangsu World Group from Zhenjiang, Jiangsu province.

To attract more business from China, Ricketts visited China twice since he took office in 2015, with the last trip in November 2016. Ricketts said that he took more than 70 businesspeople with him.

During the last trip, Ricketts and Shaanxi province's governor Hu Heping formalized Nebraska and Shaanxi province's relationship as sister states.

"Basically, we had investment summits in Shanghai and Xi'an. We tried to connect business leaders together to see where we can find those relationships and where to invest."

"We visited Jiangsu World Group. They make lawnmowers in Nebraska and farming equipment in China; it's a kind of a natural relationship there."

He also witnessed Nebraska's Preferred Popcorn extend its relationship with its Chinese partner Zhong Liang Tian Run Trading Inc to sell an additional 10 million pounds of Nebraska popcorn to China.

Nebraska is strong in agriculture, and Ricketts said that's where Nebraska and China can grow the relationship the most.

"That's why when we were in China last fall, we broke ground on a demonstration Nebraska farm in Yangling. The idea is to show what technology and processes we have in agriculture to Chinese farmers and see how they may be able to use that."

Ricketts said that Nebraska is the largest irrigable state in the US, and 80 percent of center pivot irrigation equipment is made in the state. "China might take advantage of that technology," he said.

Ricketts had taken his family to China for sightseeing before he became governor, and said his favorite city is Xi'an.

"China is a beautiful country with friendly people. I love history, and China has history more than anyplace else. I love going to Xi'an to see terracotta soldiers and the first Qin Dynasty. I am a history buff, and I love to learn what people did a long time ago," Ricketts said of his impression of China.

Source: China Daily Date: 2017-05-08

Expo 2017 would be held in Kazakhstan: great opportunities for Chinese investment

A specialised Expo 2017 will be held in Astana, the capital of the Republic of Kazakhstan. The Expo, which is taking place on a site covering 25 hectares, will be open between 10 June and 10 September 2017.

China has become the first State to sign the participation agreement with Kazakhstan in EXPO-2017. Chinese pavilion received the maximum of the available options in the area of 1000 sq.m.

According to Vice-Chairman of The Committee for the promotion of international trade of China, National Commissioner of the Pavilion of China and representative of the Chinese Government to participate in Expo-2017» Wang Jinzhen: «China, as the second largest economy in the world and the largest producer and consumer of energy, considering the EXPO-2017 in Astana as a platform for a comprehensive demonstration of advanced technology and strategy of China in the energy sector, sharing experiences with Kazakhstan and other countries, as well as underscore China's image as a responsible power».

So, what is interest in Kazakhstan for China's business?

Kazakhstan is the largest country in the Central Asian region. And the richest in natural resources. On the territory of Kazakhstan last year started production at the biggest field in recent years - Kashagan. But except oil Kazakhstan is ready to offer foreign businesses numerous contracts in different fields: from the subsoil to the agricultural products.

Kazakhstan immediately after the collapse of the Soviet Union took dramatic start to becoming a market economy. And, unlike most of the post-Soviet States, Astana became not experimenting with the gradual transformation of the economy. Therefore, after 25 years after gaining sovereignty of this country is considered to be one of the most liberal business throughout the former USSR.

In the past few years, Kazakhstan took a course on industrialization of the economy. This was an attempt to get rid of commodity dependence, which is most acutely felt during recent economic crises. However, despite very substantial accumulated from financial resources (63 billion net reserves) bet on attraction of foreign investors. Moreover, as stated by the leadership of the country, it is not only and not so much on the financial investment, how about bringing in Kazakhstan competitive technologies and innovations.

It should be noted that the integration processes in the post-Soviet space makes Kazakhstan especially attractive for investors. Market for Eurasian economic space comprising five countries (Kazakhstan, Russia, Belarus, Armenia and Kyrgyzstan) is about 180 million people. Including Russia, which after the start of the sanctions war closed for many companies from Europe and the United States. Free movement of goods and capital, as well as the absence of customs and other barriers within the Eurasian economic space is very important for the producers, who mostly target today on the Russian market.

There is another important nuance, attracting investors into the country, its geographical location. Kazakhstan is located in the center of the Eurasian continent, has a significant transit potential. Today there are developing destinations both North-South and East-West. Already heavily used corridor in the framework of the new Silk Road in Western Europe-Western China. It helps to ensure the delivery of goods from China to Europe and back for 14-15 days (vs. 45 days by sea). The last year has launched a new railway corridor Kazakhstan-Turkmenistan-Iran.

Specified became important reasons for the growth of investments in the Republic in recent years. Only for the last 10 years the size of foreign direct investment amounted to 327 billion dollars, of which 15 billion came to the country only in the year 2016 (That amid the global crisis and observed outflow of capital in emerging markets is a good indicator).

In addition, business in Kazakhstan has attracted a number of advantages in comparison with neighbouring States.

Firstly, here clearly defined areas that the State is ready to open for investors. This engineering, agriculture, food industry, retail and chemical industry. For investors in these areas of Kazakhstan provides a number of preferences.

Basic package advantage for investors-exemption from customs duties and field grants. For the priority sectors identified by the Government, for investors with an investment volume of more than 13 million dollars an additional package preferences: exemption from corporate income tax and the land tax for 10 years, from 8 years of property tax. In addition, the Kazakh authorities guarantee a return cache Beck up to 30% of the capital expenditure spent on capital construction and equipment purchases.

It should also take into account the existence of 10 special economic zones, which also provide exemption from all major taxes for 10 years (including customs duties and CPN), as well as free of charge (for the entire duration of the FEZ 25 years) provide a plot of land for construction from the failed infrastructure.

If special economic zones focusing more on large production, the regional industrial zones are playgrounds and preferences for small and medium-sized businesses. The country provided 42 such playgrounds in all regions of Kazakhstan.

It should be noted that there is stability of investment contracts. That is, any subsequent changes to the national legislation (including the part of tax rates and preferences) do not touch the investment contract. Also guaranteed them stability, i.e. at the time of the conclusion of the investment contract with the Government of (Investment Committee) the investor commits those bets, those conditions that are stipulated for it at the time, when he signs a contract and subsequent changes to legislation and tax preferences will not touch it.

Kazakhstan also provides investors with the opportunity to attract its own (foreign) workforce without special permits. Such workers may bring for the period of construction objects and starting-up and adjustment works.

Such reforms to improve the investment climate creation allowed Kazakhstan to improve its position in the World Bank ranking of Doing business-last year the country was ranked 35 place. Moreover, such a measure as "reform" Kazakhstan took one of the leading places in the world.

Today Kazakhstan is one of the most open countries in the world. The attractive geographical location, enormous opportunities for investment in the most different business areas, and full support for investors on the part of the authorities to guarantee a successful enterprise development both local and foreign. Kazakhstan intends to in the next two decades to become one of the 30 most developed countries in the world. And, repeating the big leap in Singapore is quite able to do it. Especially making a bet for investors who are willing to bring into the country, the technology of the future. The benefit to this there are all conditions.

In December 2015 year between Kazakhstan and China signed a memorandum on simplification of group travel by Chinese citizens in Kazakhstan. In accordance with the memorandum, for tourist groups from China subject to availability of visa support, which prepares the travel company of Kazakhstan, visa is issued without personal presence of traveling within 5 working days

Source: China Daily Date: 2017-05-05