Advertisement

China’s Agro-Development Cooperation with Africa: The Agribusiness Model

  • Lu JiangEmail author
Chapter
Part of the Governing China in the 21st Century book series (GC21)

Abstract

This chapter examines the ‘agribusiness model’ adopted in Chinese agro-development cooperation with Africa. It introduces the model by exploring its motives, actors and modalities and further unpacks the model by examining four fieldwork-based case studies of Chinese agribusiness projects in Mozambique. The four cases bring to light different types of company actors, governmental relations, investment fields and modalities. Meanwhile, they also share certain similarities with each other and thus provide a good basis for a comparative integrated analysis. A preliminary analysis of the results—particularly concerning the financing, production, processing and market aspects of the agro-investment—of the ‘agribusiness model’ is provided at the end of the chapter.

Keywords

Agribusiness model Agro-investment Financing Production Processing Market China Mozambique 

References

  1. Anseeuw, Ward et al. 2011. ‘Land Rights and the Rush for Land: Findings of the Global Commercial Pressures on Land Research Project’. http://www.landcoalition.org/sites/default/files/documents/resources/ILC%20GSR%20report_ENG.pdf.
  2. Bräutigam, Deborah. 2016. Will Africa Feed China? Oxford: Oxford University Press.Google Scholar
  3. CACD (China-Africa Cotton Development Ltd.). n.d. ‘China-Africa Cotton Mozambique Limited’. Accessed 31 May 2019a. http://www.ca-cotton.com/en/company/c/.
  4. ———. n.d. ‘Introduction’. Accessed 31 May 2019b. http://www.ca-cotton.com/en/aboutus/a/.
  5. CCP (China’s Communist Party). 2014. ‘Guanyu Quanmian Shenhua Nongcun Gaige Jiakuai Tuijin Nongye Xiandaihua de Ruogan Yijian (“No. 1 Document of the CCP”)’. http://www.gov.cn/jrzg/2014-01/19/content_2570454.htm.
  6. Chen, Xiaochen. 2013. ‘Gengyun Feizhou: Tansangniya Zhongguo Jianma Nongchang de Zhenshi Gushi (Farming in Africa: The Real Story of Chinese Sisal Farm in Tanzania)’. http://finance.sina.com.cn/roll/20130521/012715526584.shtml.
  7. Chen, Yanjuan, Lu Qin, and Yan Deng. 2012. ‘Zhongguo Dui Angela Nongye Touzi de Xianzhuang, Wenti Yu Duice (China’s Agricultural Investment in Angola: Current Situations, Problems and Countermeasures)’. Duiwai Jingji Shiwu (Economic Relations and Trade) 12.Google Scholar
  8. Cheng, Rongdong, and Xuelei Bai. 2018. ‘Yangguang Xinwen Jujiao Hubei Hefeng Feizhou Zhongtian (CNR News Foduses on Hubei Hefeng’s Farming in Africa)’, 15 August. http://www.cnr.cn/hubei/yaowen/20180815/t20180815_524332005.shtml.
  9. Chichava, Sérgio. 2013. ‘Xai-Xai Chinese Rice Farm and Mozambican Internal Political Dynamics: A Complex Relation’. LSE IDEAS Africa Programme Occational Paper 2. http://s3.amazonaws.com/china_resources/17484/2013-07-24_09_26_57_-0400_Sergio-Chichava---Occasional-Paper-2.pdf.
  10. China.com.cn. 2012. ‘Mali Tanglian youdian “tian” (The Malian Association Is a Bit Sweet)’. http://finance.china.com.cn/roll/20120618/810592.shtml.
  11. Comnews (Run by China’s Ministry of Commerce). 2014. ‘Guoji Liangcang Bicang, Dadou Hangye Ruhe Yingdui Weiji? (How Can Soybean Companies Cope with “Market Corner” Crisis Imposed by International Traders)’, 16 April 2014. http://www.chinadaily.com.cn/hqcj/gjcj/2014-06-16/content_11840743.html.
  12. Cotula, Lorenzo, Sonja Vermeulen, Rebeca Leonard, and James Keeley. 2009. ‘Land Grab or Development Opportunity? Agricultural Investment and International Land Deals in Africa’. https://www.google.com.hk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0ahUKEwj6v9iSnpfVAhUFwBQKHaZUBuQQFggkMAA&url=http%3a%2f%2fwww%2efao%2eorg%2f3%2fa-ak241e%2epdf&usg=AFQjCNHkljuMWiuA7EQjCKqNez-HSfdMDw.
  13. Ding, Dong. 2014. ‘Zhongguo Nongken Dazao Guoji Da Liangshang (China’s State Farming System Aims to Develop into International Food Trader)’. http://www.chinanews.com/cj/2014/04-10/6046032.shtml.
  14. EC (European Commission). 2005. ‘The Crisis in African Agriculture: A More Effective Role for EC Aid?’ http://practicalaction.org/docs/advocacy/the_crisis_in_african_agriculture.pdf.
  15. Economic Information. 2015. ‘Luoshi Zhongyao Yihao Wenjian, Zhengcexing Xinyong Baoxian Zhichi nongye “zouchuqu” (Realizing CCP’s No. 1 Document: Policy-Oriented Insurance Supports Agricultural “Going Out”)’. Jingji Cankao Bao (Economic Information), 20 March. http://news.xinhuanet.com/fortune/2015-03/20/c_127601043.htm.
  16. FAO (Food and Agriculture Organization of the United Nations). 2002. ‘FAO Rice Information: Mozambique’. http://www.fao.org/docrep/005/y4347e/y4347e17.htm#TopOfPage.
  17. ———. 2003. ‘Food Security: Concepts and Measurement’. Trade Reforms and Food Security: Conceptualizing the Linkages. http://www.fao.org/docrep/005/y4671e/y4671e06.htm#fnB21.
  18. ———. 2013. ‘Trends and Impacts of Foreign Investment in Developing Country Agriculture: Evidence from Case Studies’. http://www.fao.org/fileadmin/user_upload/newsroom/docs/Trends%20publication%2012%20November%202012.pdf.
  19. FAO of Hubei (Foreign Affairs Office of Hubei Provincial People’s Government). 2012. ‘Hubeisheng Yu Waiguo Dijie Youhao Chengshi Xiangqing (Twinned Foreign Cities with Hubei Province)’. http://www.fohb.gov.cn/swzx/show/648.aspx.
  20. Freeman, Duncan, Jonathan Holslag, and Steffi Weil. 2008. ‘China’s Foreign Farming Policy: Can Land Provide Security?’ Asia Papers. Brussels Institute of Contemporary China Studies. http://www.farmlandgrab.org/wp-content/uploads/2008/11/freeman-holslag-and-weil-2008-chinas-foreign-farmong-policy-biccs-asia-paper-vol-3-9.pdf.
  21. Ganho, Ana Sofia. 2013. ‘“Friendship” Rice, Business, or “Land-Grabbing”? The Hubei-Gaza Rice Project in Xaixai’. LDPI (The Land Deal Politics Initiative) Working Paper 32. http://www.iss.nl/fileadmin/ASSETS/iss/Research_and_projects/Research_networks/LDPI/LDPI_WP_32.pdf.
  22. Guo, Kaixuan. 2018. ‘Guokaihang Zhaokai Zhichi Nongye “Zouchuqu” Yinqi Hezuo Tuidonghui (CDB Holds Bank-Company-Cooperation Meeting to Support Agricultural “Going Out”)’. Xinhua News, 30 September. http://www.xinhuanet.com/money/2018-09/30/c_129964279.htm.
  23. Harsch, Earnest. 2004. ‘Agriculture: Africa’s “Engine for Growth”’. Africa Recovery. http://www.un.org/en/africarenewal/vol17no4/174ag.htm.
  24. Jiang, Lu. 2015. ‘Chinese Agricultural Investment in Africa: Motives, Actors and Modalities’. Occasional Paper 223. Foreign Policy Programme. SAIIA (South African Institute of International Affairs).Google Scholar
  25. Jiang, Yunzhang. 2014. ‘Guangfang Baogao Dingdiao Nongye Haiwai Touzi (Official Report Set Tones for Agricultural Overseas Investment)’. http://www.eeo.com.cn/2014/0507/260161.shtml.
  26. Jiao, Jian. 2013. ‘Zhongguo Liangshi Anquan Baogao (Chinese Food Security Report)’. Caijing Zazhi (Financial Magazine). http://news.ifeng.com/shendu/cj/detail_2013_12/09/31912251_0.shtml.
  27. Justiça Ambiental. 2013. ‘“Wambao Agriculture” os recentes e reais impactos de mais uma bolada dos dragões em nome do desenvolvimento (“Wambao Agriculture” Recent and Actual Impacts of Another Hefty Dragons in the Name of Development)’. Justiça Ambiental. http://www.verdade.co.mz/ambiente/39110--wambao-agriculture-os-recentes-e-reais-impactos-de-mais-uma-bolada-dos-dragoes-em-nome-do-desenvolvimento.
  28. Kajisa, Kei, and Ellen Payongayong. 2013. ‘Extensification and Intensification Process of Rainfed Lowland Rice Farming in Mozambique’. JICA Research Institute Working Papers 61. https://jica-ri.jica.go.jp/publication/assets/JICA-RI_WP_No.61_2013.pdf.
  29. Liu, Dalong. 2011. ‘Zongshu: Zhongguo Yu Mosangbike Kaizhan Nongye Hezuo Qianjing Guangkuo (Overview: China-Mozambique Agricultural Cooperation Has Great Prospects)’. Xinhua News Agency. http://news.xinhuanet.com/world/2011-09/19/c_131147121.htm.
  30. Liu, Yanbo, and Min Liu. 2016. ‘Six Experiences of Qingdao Ruichang in Investing African Agriculture (Qingdao Ruichang Touzi Feizhou Nongye Liuda Jingyan)’. 6 September. https://www.imsilkroad.com/news/p/6348.html.
  31. Ma, Zhigang, Qi Wang, Zhihong Tian, and Xueling Zhai. 2014. ‘Zhichi Nongye Duiwai Touzi Shouduan Fangshi de Tantao (Supporting Measures of China’s Agricultural Foreign Investment)’. Shijie Nongye (World Agriculture) 2.Google Scholar
  32. Min, Baohua, and Jie Han. 2012. ‘Goujian Mosangbike de Guojia Liangcang: Wanbao Liangyou Youxian Gongsi Shishi “zouchuqu” zhanlue Jishi (Building Mozambique’s National Grain Storage: Wanbao implementing “Going Out” Strategy)’. Xiangyang Ribao (Xiangyang Daily), 18 December.Google Scholar
  33. MMO Notícias. 2014. ‘Polícia Acusada de Impedir Marcha de Camponeses Em Xai-Xai (Police Accused of Preventing March of Peasants in Xai-Xai)’. MMO Notícias, 21 March. http://noticias.mmo.co.mz/2014/05/policia-acusada-de-impedir-marcha-de-camponeses-em-xai-xai.html.
  34. MOA and EXIM Bank of the PRC (Ministry of Agriculture and the Export and Import Bank of the People’s Republic of China). 2008. ‘Agreement on Co-supporting Agricultural “Going Out”’.Google Scholar
  35. MOA of the PRC (Ministry of Agriculture of the People’s Republic of China). 2017. ‘Report on Chinese Overseas Agricultural Investment and Cooperation’. Ministry of Agriculture, Beijing.Google Scholar
  36. MOC of the PRC (Ministry of Commerce of the People’s Republic of China). 2010. ‘Zhongguo Yu Feizhou Jingmao Guanxi Baogao (China-Africa Economic and Trade Relations Report)’.Google Scholar
  37. MOF and MOC of the PRC (Ministry of Finance and Ministry of Commerce of the People’s Republic of China). 2012. Guanyu Zuohao 2012nian Duiwai Jingji Jishu Hezuo Zhuanxiang Zijin Shenbao Gongzuo de Tongzhi (On Applying for the Special Fund for Foreign Economic and Technological Cooperation in 2012). http://www.mofcom.gov.cn/article/cwgongzuo/huiyjl/201207/20120708225224.shtml.
  38. Mu, Dong. 2013. ‘Ji Zanbiya Zhongken Nongchang Nvchangzhang Lili (Documenting Lili, the Owner of Zhongken Farm)’. Xinhua News, 12 September. http://news.xinhuanet.com/overseas/2013-09/12/c_117340064.htm.
  39. NBS of the PRC (National Bureau of Statistics of the People’s Republic of China). 2011. ‘Tongji Dazhongxiaowei Xing Qiye Huafen Fangfa (Classifications of Large/Medium/Small/Micro-Sized Enterprises)’. http://www.stats.gov.cn/statsinfo/auto2073/201310/t20131031_450691.html.
  40. NDRC and MOC of the PRC (National Development and Reform Committee and Ministry of Commerce of People’s Republic of China). 2013. Guanyu Yinfa Guli Kaizhan Jingwai Nongye Touzi Hezuo Zhidao Yijian de Tongzhi (Suggestions on Overseas Agricultural Investment and Cooperation).Google Scholar
  41. NEPAD (New Partnership for Africa’s Development). 2013. ‘Agriculture in Africa: Transformation and Outlook’. http://www.nepad.org/resource/agriculture-africa-transformation-and-outlook.
  42. Ning, Bo. 2012. ‘Hubei Hefeng Touzi 10yi Mosangbike Kaifa Nongye (Hefeng from Hubei Province Invests 1 Billion RMB in Mozambican Agriculture)’. Xiaogan Ribao (Xiaogan Daily), 5 June. http://szb.xgrb.cn:9999/epaper/xgrb/html/2012/06/05/01/01_102.htm.
  43. Niu, Qichang. 2013. ‘Haiwai Nongchang de Zhongguo Shenying (The Chinese in Overseas Farms)’. Jingji Daobao (Economic Herald), 25 September. http://paper.dzwww.com/jjdb/data/20130925/html/2/content_2.html.
  44. Observer. 2013. ‘Woguo Haiwai Liangshi Jidi Shoudi Shuidao Yunhui (The First Batch of Rice Grown Overseas Were Shipped Back to China)’. http://www.guancha.cn/Industry/2013_12_15_192762.shtml.
  45. Ottaviani, Jacopo, Andrea Fama, Isacco Chiaf, and Cecilia Anesi. 2013. ‘China Accused of Stealth Land Grab over Mozambique’s Great Rice Project’. http://www.theecologist.org/News/news_analysis/2177709/china_accused_of_stealth_land_grab_over_mozambiques_great_rice_project.html.
  46. Pang, Lijing. 2015. ‘Shiye Haiwai Touzi Chaoyong (A Wave of Foreign Investment)’. 13 July. http://www.eeo.com.cn/2015/0205/272190.shtml.
  47. People.cn. 2012. ‘Zhongcheng Jituan: Rang Tianmi de Shiye Zaofu Yu Feizhou Renmin (The COMPLANT: Sweet Career Benefits African People)’. People.cn, 12 November. http://finance.people.com.cn/n/2012/1112/c351563-19555158.html.
  48. ———. 2013. ‘Guokaihang Hubei Fenhang Zhichi Nongye “zouchuqu” xingcheng “wanbao moshi” (CDB Hubei Supports “Agricultural Going Out” and Forms “Wanbao” Model)’. People.cn, 14 March. http://finance.people.com.cn/bank/n/2013/0314/c202331-20786349.html.
  49. People’s Daily. 2013. ‘Gengyun Mengxiang de Haiwai Youzi (The Overseas Chinese Seeking for Dreams)’. People’s Daily (Overseas Edition), 21 September. http://paper.people.com.cn/rmrbhwb/html/2013-09/21/content_1301448.htm.
  50. Ren, Jie. 2014. ‘Zhongfei Mianye Daidong Mosangbike Miannong Zengshou (China Africa Cotton Company Promotes Income Increase of Mozambican Farmers)’. http://gb.cri.cn/42071/2014/06/18/7551s4581935.htm.
  51. Shen, Junlin. 2017. ‘Ruichang Mianye: Rang 100wan Feizhouren Shouyi (Ruichang Cotton Company: Benefiting 1 Million African People)’. Qingdao Ribao (Qingdao Daily), 9 June. http://www.qdbofcom.gov.cn/n32208327/n32208334/n32208552/n32208553/170609160637403446.html.
  52. Sohu News. 2018. ‘Zhongguo Nongye Zoujin Feizhou (China’s Agriculture Expands to Africa)’. Sohu News. 4 September. https://www.sohu.com/a/251848387_782515.
  53. Song, Hongyuan, Xiao Xu, Xueling Zhai, Xuegao Xu, Li Wang, and Hailong Xia. 2012. ‘Kuoda Nongye Duiwai Touzi, Jiakuai “zouchuqu” zhanlue (Expand Agricultural Foreign Investment and Hasten the Implementation of “Going Out” Strategy)’. Jingji Yanjiu Cankao (Economic Research Review) 2444 (28).Google Scholar
  54. Sun, Lihua. 2019. ‘Mosangbike: Wanbo Mosang Nongyeyuan Shuidao Xiying Fengshou (Mozambique: Wanbao Agricultural Park Has a Rice Harvest)’. Sohu News. 3 April. http://www.sohu.com/a/305718995_201960.
  55. Thurow, Roger. 2008. ‘Agriculture’s Last Frontier: African Farmers, U.S. Companies Try to Create Another Breadbasket With Hybrids’. The Wall Street Journal. http://www.wsj.com/articles/SB121185343060221769.
  56. UNCTAD (United Nations Conference on Trade and Development). 2009. ‘World Investment Report 2009: Transnational Corporations, Agricultural Production and Development’. http://unctad.org/en/Docs/wir2009_en.pdf.
  57. Wan, Baorui. 2011. ‘Guanyu Nongye “zouchuqu” wenti (On the Issue of “Agricultural Going Out”)’. Jingji Yanjiu Cankao (Economic Research Review) 2380 (36): 19.Google Scholar
  58. ———. 2012. ‘Jiakuai Shishi Nongye “zouchuqu” zhanlue (Quickening the Implementation of Agricultural Going Out Policy)’. Renmin Ribao (People’s Daily), 5 June. http://paper.people.com.cn/rmrb//html/2012-06/05/nw.D110000renmrb_20120605_1-07.htm.
  59. Wanbao. n.d. ‘Gongsi Jieshao (Company Profile)’. Accessed 8 February 2016. http://en.wblyjt.com/?comContentId=8f102a02-541d-4fff-bf4d-c116189003ff.
  60. Wang, Chao. 2014. ‘Firm That Cottoned on to a Good Deal’. China Daily Africa. http://africa.chinadaily.com.cn/weekly/2014-06/13/content_17584808.htm.
  61. Will, Magret. 2013. Contract Farming Handbook: A Practical Guide for Linking Small-Scale Producers and Buyers Through Business Model Innovation. Bonn and Eschborn: GIZ. http://www.unidroit.org/english/documents/2013/study80a/bibliogr-references/s-80a-will-contract.pdf.
  62. Wily, Liz. 2011. ‘The Tragedy of Public Lands: The Fate of the Commons under Global Commercial Pressure’. http://www.landcoalition.org/sites/default/files/documents/resources/WILY_Commons_web_11.03.11.pdf.
  63. ———. 2012. ‘Rights to Resources in Crisis: Reviewing the Fate of Customary Tenure in Africa’. http://www.rightsandresources.org/documents/files/doc_4699.pdf.
  64. World Bank. 2013. ‘Growing Africa: Unlocking the Potential of Agribusiness’. The World Bank. http://siteresources.worldbank.org/INTAFRICA/Resources/africa-agribusiness-report-2013.pdf.
  65. Xiangyang Government. 2013. ‘Wanbao Liangyou Yu Zhongfei Fazhan Jijin Qianyue, Hezuo Touzi Kaifa Wanbao Feizhou Mosangbike Nongye Xiangmu (Wanbao and CADFund Signed Agreement to Co-operate in Agricultural Project in Mozambique)’. http://www.xiangyang.gov.cn/news/xyxw/xyyw/201309/t20130916_438735.shtml.
  66. Xinhua News Agency. 2010. ‘Hui Liangyu Zai Zhongfei Nongye Hezuo Luntan Bimushi Shang de Jianghua (Hui Liangyu’s Speech on the Closing Ceremony of Forum on China-Africa Agricultural Cooperation)’. http://news.xinhuanet.com/2010-08/12/c_12440117.htm.
  67. Xu, Juan. 2013. ‘Guojia Kaifa Yinhang Qingdao Fenhang Zhuli qiye “zouchuqu” (CDB Qingdao Supports Enterprises to “Go Out”)’. People.cn, 30 July. http://society.people.com.cn/n/2013/0730/c1008-22379126.html.
  68. Yang, Shaopin. 2012. ‘Zhongguo Nongye Jiakuai shishi “zouchuqu” (Hasten the Implementation of China’s “Agricultural Going Out” Strategy)’. http://money.163.com/12/0822/12/89GTIALO00254S3A.html.
  69. Ye, Xingqing. 2007. ‘Zhongguo Nongye yiying “zouchuqu” (Chinese Agriculture Should Also “Go Out”)’. Liaowang (Outlook), no. 20: 50.Google Scholar
  70. Yu, Wenjing. 2014. ‘Nongken “zouchuqu” bufa Jiakuai (The State Farming System Has Hastened Its Pace to “Go Out”)’. http://finance.china.com.cn/roll/20140410/2323715.shtml.
  71. Yu, Yuanyuan. 2014. ‘Tansang Jianma Xiangmu Qishilu (Learning from Tanzanian Sisal Farm)’. CNADC (China National Agricultural Development Group Co. Ltd) News, 10 October. http://www.zgnfb.com/news-5461.html.
  72. Yuan, Jirong. 2013. ‘Zhongguo Jianma Nongchang Zaofu Tansangniya (Chinese Sisal Farm Benefits Tanzania)’. http://world.people.com.cn/n/2013/0206/c1002-20444180.html.
  73. Zhai, Xueling. 2006. ‘Woguo Nongye “zouchuqu” de Wenti Ji Duice (Problems and Countermeasures of China’s Agricultural “Going Out”)’. Guoji Jingji Hezuo (International Economic Cooperation) 7: 7–10.Google Scholar
  74. Zhang, Qingmin. 2009. ‘Liushinian Lai Xinzhongguo Waijiao Buju de Fazhan (Development of the Overall Diplomatic Arrangement of the New China in the Past Six Decades)’. Waijiao Pinglun (Foreign Affairs Review) 4: 32–42.Google Scholar
  75. Zhang, Yu. 2008. ‘Zhongguo Nongken Haiwai Tuohuang (Chinese State-Farming Companies Explore Overseas)’. http://zzwz.qikan.com/ArticleView.aspx?titleid=zzwz20080816.
  76. Zhang, Zhe. 2010. ‘Zhongken Nongchang Chanpin Zhan Dangdi 20% (Products of Zhongken Farm Occupies 20% of Local Market)’. http://news.sina.com.cn/c/sd/2010-04-08/144520032529_3.shtml.
  77. Zhou, Cui. 2018. ‘CDB: Strengthening China-Africa Cooperation through Channelling Financial and Intellectual Resources (Guokaihang: Rongzi Rongzhi Zhutui Zhongfei Shenhua Hezuo)’. 21 September 2018. http://www.financialnews.com.cn/yh/sd/201809/t20180921_146550.html.

Copyright information

© The Author(s) 2020

Authors and Affiliations

  1. 1.Shanghai University of International Business and EconomicsShanghaiChina
  2. 2.Fudan Development InstituteShanghaiChina

Personalised recommendations