February 15, 2007

 

China to invest US$1 bln in philippines for sorghum production

 

 

China will invest in the Philippines an estimated US$1 billion for the production of sorghum, a drought-resistant, heat-tolerant grass used for food, fodder, alcoholic beverages and biofuel.  

 

Such investment will be made gradually, said commercial attache Liang Wentao of the Chinese Embassy.

 

President Gloria Macapagal Arroyo lauded China for such plan as she noted this will help generate more income for the country and additional jobs for the people.

 

The project is part of several commercial ventures Chinese stakeholders will undertake nationwide, particularly as Liang confirmed the Philippines is now among China's priority funding recipients on account of both countries improving relations and geographic proximity to each other.

 

Liang said last year's total trade volume between both countries hit some US$23.4 billion.

 

The Chinese attache noted the Philippines is selling about US$10 billion worth of goods, more than what it is importing from China.

 

The Department of Agriculture (DA) reported that local authorities and the Fu Hua Company of China field-tested in Tarlac and Nueva Ecija provinces six new sorghum varieties which China developed to help triple production output of this grain.

 

The DA is awaiting the results of the testing in Nueva Ecija but the agency reported two of these hybrid varieties performed well in Tarlac's demonstration farm.

 

Fu Hua will invest a total of US$ 3.83 billion for cultivation of hybrid corn, hybrid rice and hybrid sorghum throughout one million hectares of agri-business land in the country.

 

The DA said more agreements are due for signing within 2007 as Chinas largest agricultural investor, the Beidahung Heilongjiang Group, expressed interest in developing for agri-business some 200,000 hectares of land nationwide.