August 5, 2014

Three leading Asian agribusinesses join Australia-Sino agricultural partnership

Three leading agribusinesses in Asia: China's New Hope Group, COFCO and Singapore's Wilmar International, have joined the Australia-Sino 100-Year Agricultural and Food Safety Partnership, a deal that will position Australia as China's food bowl, reported AFP.

Also known as "ASA 100", the partnership will ultimately comprise dozens of members, including food producers, distributors and politicians largely from China and Australia.

The partnership aims to make Australia China's "most reliable" supplier of agricultural products over the next century, according to Andrew Forrest, the founder of Fortescue Metals Group, which has recently turned attention to agribusiness.

Forrest also said that Australia's agriculture industry could become a mainstay of the national economy if efficiencies were boosted. Despite being one of the world's largest exporters of meat and dairy, Australia's agricultural sector makes up about 2% of the economy, far lower than the 10% from the mining industry.

China is Australia's largest trading partner. The economic growth of Australia is partly fuelled by the huge Chinese demand for natural resources in the country, such as iron ore and coal.