The owners of Multigrain, a leading Brazil-based agricultural commodity business, announced today the company has acquired 100,000 hectares (247,000 acres) of farmland and related processing operations intended to strengthen its ability to serve customers around the world.
Japan's big trading houses, which have enjoyed bumper years from betting on iron ore and metals, are getting into the food market, aiming to tap voracious demand in China and emerging economies.
China's Ministry of Agriculture (MOA) was drafting policies to encourage domestic companies to rent or buy land abroad for farming, especially for planting soy bean, the EO learned. The MOA had identified five regions, including Central Asia, Russia, Africa, Southeast Asia, and South America, for five major Chinese state-owned farming companies to invest in.
Brazilian grain broker Multigrain SA has bought 100,000 hectares of farmland and related operations in Brazil to secure a stable supply of soybeans and other farm produce, Japan's Mitsui & Co Ltd, a part owner of holding company Multigrain AG, said on Tuesday.
