According to Ernst & Young, Chinese outbound direct investment in agriculture has increased significantly over the past few years. Of China’s total outbound direct investment for the first half of 2013, outbound direct investment in agriculture accounted for 15% compared to 4% in 2009. From 2010 to September 2013 the value of Chinese outbound mergers and acquisitions in food and agriculture exceeded US$9 billion according to the Economist Intelligence Unit (EIU). China’s food imports are expected to increase sevenfold to US$360 billion by 2050 from US$50 billion in 2007 and globally, China’s mergers and acquisitions in the food and beverage sector increased 117% to US$ 194.6 billion last year according to David Thorn, the Asia-head of institutional banking at National Australia Bank. As concern for food safety grows in Asia, China’s overseas investments in agriculture are expected to grow in kind.
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