The government aims to net more investment from Middle East oil state main players next year, in particular in the agricultural sector, despite the global economic downturn, says a government official.
"A number of agriculture investment projects are also in the pipeline. We are co-ordinating with some regions to find areas to plant rice for export to the UAE."
Sudan is hoping to use foreign cash to reinvigorate its under-performing agricultural sector, but there is growing disagreement over the extent to which outsiders, rather than local farmers, should be taking control of the industry.
Agriculture Secretary Arthur Yap noted that Qatar is looking for about 100,000 hectares of land for food production.
“Now we are facing the food crisis. Madagascar can have a lot to offer on this: we have land, we are using less than 10% of arable land in Madagascar. The big foreign investors can come in, work together with us. They will get good return on investment and we will get food for the population."
The Pakistani government has finalised plans to offer ownership of agricultural lands to investors for farming to achieve self-sufficiency in agriculture produce, Federal Minister for Investment, Senator Waqar Ahmad Khan told Daily Times. “We are extremely enthusiastic in providing areas for farming with great incentives,” he added.
Agriculture Department denies a recent WA trade delegation visit to several Middle Eastern countries was to promote selling WA agricultural land for grain and livestock.
Mitsui & Co., Japan's second-largest trading company, may increase investment in farming overseas to secure food supplies as competition from China, the biggest grain consumer, intensifies. The company is seeking new targets after taking a 39.35 percent stake in Multigrain AG, which produces soybeans in Brazil, the world's second-largest grower.
Agriculture Minister Terry Redman says Western Australia should embrace moves by Arab interests in the Middle East to buy prime Wheatbelt farmland to secure their future food supplies. Two groups from the Middle East are due to visit the State early next year as they consider investments of up to $1 billion in cropping, sheep and dairy production in WA.
Just how much security the new land investments may provide countries and corporations remains uncertain, experts say. Future governments in countries now renting or selling land may well fail to abide by deals their predecessors cut, particularly if they face food or land shortages at home.
The Ethiopian government’s ambitious target of harvesting 28 million tonnes of cereals in the first three quarters of the 2007/2008 budget year has failed. Authorities seem determined to change this situation by leasing huge chunks of land to other sovereign states for mechanised farming.
"They're not talking about $2 or $3 million, they're talking about $20 million to up to $1 billion of investment in big projects," Peter Metcalfe, the director of grain industry development for Western Australia, said in an interview.
