Interview: China, Australia need each other in agriculture: Chinese ambassador

By CnAgri Print

 CANBERRA, Dec. 21 (Xinhua) -- China and Australia are complementary to each other in agriculture. Despite obstacles, the complementary demand enables both countries to develop more possibilities in further cooperation, Chinese Ambassador to Australia Chen Yuming said in an interview with Xinhua on Thursday.

Coincidentally, Australia's Department of Foreign Affairs and Trade (DFAT) released on Thursday a joint study by Australian and Chinese governments, saying that closer cooperation between the two countries in agriculture would raise rural productivity and spur regional development while helping global efforts on food security.

When asked about the recent debate in Australia about Chinese investment in Australian agricultural sector, Chen said it is an undeniable fact that China has a big market, while Australia is in need of bringing in investment and expanding exports. "China has the demand for Australian agricultural products and Australia has advanced agricultural technology and high quality goods. One hand won't make a clap. What we should do is to respect the needs from both sides and promote cooperation," Chen said.

The joint study released on Thursday, the first of its kind, found that Chinese investment in Australian agriculture is "in its infancy", although growing. Any increased production stemming from more cooperation with China would be "available for sale on world markets."

The ambassador said he was pleased to see that some positive progresses have been made in this area with some heavyweight investment projects by Chinese enterprises got approval from Australian federal and state government agencies.

In November, Chinese company Shanghai Zhongfu has won the bid for 15,000 hectare of prized Ord River agricultural land in Western Australia's Kimberley region. The company is set to construct a 250 million Australian dollar (265 million U.S. dollar) sugar mill, and plans to produce and harvest four million tons of cane a year to turn into sugar and biofuels.

Earlier this year, the Australian government approved the sale of Cubbie Station in Queensland, Australia's largest cotton farm and the biggest irrigation operation in the southern hemisphere, to China's Shandong Ruyi which, as a textile company, eyes for a secured supply of high quality cotton.

However, some Australian politicians, including members of the National Party have concerns with foreign-ownership of agricultural land and water rights, claiming the sale of Cubbie Station is not in Australia's national interest.

However, the study released on Thursday by DFAT identifies new irrigation developments such as the Ord-East Kimberley Expansion Project as "opportunities for mutually beneficial investment."

"It is normal to have different views on this issue. Foreign cooperation in agriculture sector is a sensitive issue for almost every country. What's important for Chinese and Australian governments is to adapt to the mutual needs and promote deeper understanding and further cooperation," Chen said, adding, "I am optimistic about China-Australia agricultural cooperation. There is huge potential in this respect."

A DFAT media release quoted Australian Trade Minister Craig Emerson as saying that the long-term cooperation in agriculture and agribusiness would help diversify the commercial relationship between Australia and China. "The benefits that will flow from the cooperation outlined in this report will go a long way towards ensuring Australia is making the most of the opportunities of the Asian Century," Emerson said.

Source: Xinhua News Agency