October 6, 2006

China may have to boost grain imports because of pollution
 

Pollution in China could cut into the country's commodity production and force it to increase imports of grain in two years, Roland Jansen, chief investment officer for Mother Earth Resources Fund, said Thursday (Oct 5).

Speaking at the Commodities Investment World Europe 2006 conference in London, Jansen said 12 million tonnes of grains are lost each year in China because of pollution damage and 3.7 billion tonnes of sewage water is produced daily.

"I predict China would have to purchase huge amounts of grains in two years because of pollution," Jansen said. "Environmental problems really stop economic growth in China."

Jansen said China has increased its efforts to develop renewable energy sources as pollution increases. He said the government has said that by 2020 it hopes 50 percent of energy comes from renewable energy.

He said there is a national initiative to get 10 percent ethanol into gasoline in the country, following in the path of India and Brazil.

"There is investment to help combat pollution and help farmers raise (agriculture) yields," he said.