September 23, 2013

China plans to purchase large swath of Ukrainian farmland

China's Xinjiang Production and Construction Corps (XPCC) and Ukrainian agricultural firm KSG Agro have reached an agreement, in which Ukraine will provide 100,000 hectares of farmland to China.

According to the agreement, Ukraine will provide up to 3 million hectares of farmland to China in the future, which would make Ukraine the largest overseas farming base for China.

With 9% of global land resource, China is home for about 20% of the world's population. The country's demand for food is increasing fast as incomes rise, prompting China to expand its overseas farming to ensure sufficient food supplies.

However, China's agricultural expansion overseas has met resistance. In June this year, Australian politicians called for greater scrutiny over farm purchases by Chinese buyers.