China signs deal to farm 5% of Ukraine

Posted on September 25th, 2013 by

Wheat field in Ukraine (© Raimond Spekking / CC-BY-SA-3.0 via Wikimedia Commons)

Earlier this year, China signed a deal that will allow China to lease and farm 3 million hectares of agricultural land in Ukraine, or five percent of Ukraine. With fertile plains and a climate similar to the wheat-growing regions of Manitoba, Ukraine is one of the world’s top grain-producing countries. According to Mandy Zuo of the South China Morning Post, “The move is a significant step in China’s recent efforts to encourage domestic companies to farm overseas as China’s food demand grows in pace with urbanisation. . . China has made substantial agricultural investments elsewhere, notably in South America. Beidahuang acquired 234,000 hectares to grow soya bean and corn in Argentina, while Chongqing Grain paid US$375 million for soya bean plantations in Brazil and US$1.2 billion for land in Argentina to grow soya beans, corn and cotton.”

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