By 2050 China is expected to spend US$1.75 trillion on food – double the US$870 billion it spent in 2009 according to the Australian Bureau of Agricultural and Resource Economics & Sciences (ABARES). While Australia has advantages such as proximity to China’s markets and time zone, its high dollar, high production costs, and lack of scale leaves it unable to meet China’s demand in high-growth categories such as soybeans. Meanwhile the U.S., Brazil, New Zealand, The Netherlands, Denmark, France, and Germany are working to supply China with both low and high value foodstuffs. New Zealand has set a target of NZ$30billion in bilateral trade with China by 2020 after signing a free trade agreement with China in 2008. The U.S. is the world’s biggest food exporter with US$25 billion of its US$145 billion worth of agricultural exports going to China – much of it as soybeans at approximately US$10 billion, and the U.S. is looking to increase its exports of meat, dairy, high value fruit, vegetables, and nuts to China. With its use of intensive farming and technology The Netherlands is the world’s number two food exporter by value and currently China is its number three export destination behind the U.S. and Russia. Germany and France are the world’s 3rd and 4th ranked exporters and are both looking to strengthen supply ties with China through direct exports and Chinese investments in EU-based food operations. To read further about China’s fragmented and uncoordinated agricultural supply chain and the measures the country is taking to ensure food security:
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