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Fears for the world's poor countries as the rich grab land

Jul 04 2009 07:48
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The acquisition of farmland from the world's poor by rich countries and international corporations is accelerating at an alarming rate, with an area half the size of Europe's farmland targeted in the last six months, reports from United Nations officials and agriculture experts say.

New reports from the UN and analysts in India, Washington and London estimate that at least 30-million hectares is being acquired to grow food for countries such as China and the Gulf states who cannot produce enough for their populations.

According to the UN, the trend is accelerating and could severely impair the ability of poor countries to feed themselves.

It has now emerged that world leaders are to discuss what is being described as "land grabbing" or "neo-colonialism" at the G8 meeting next week.

A spokesperson for Japan's ministry of foreign affairs confirmed that it would raise the issue: "We feel there should be a code of conduct for investment in farmland that will be a win-win situation for both producing and consuming countries," he said.

Olivier De Schutter, special envoy for food at the UN Office of the High Commissioner for Human Rights, said: "[The trend] is accelerating quickly. All countries observe each other and when one sees others buying land it does the same."

The UN's food and agricultural organisation and other analysts estimate that nearly 20m hectares of farmland -- an area roughly half the size of all arable land in Europe -- has been sold or has been negotiated for sale or lease in the last six months.

About 10-million hectares was bought last year. The land grab is being blamed on wealthy countries with concerns about food security.

Some of the largest deals include South Korea's acquisition of 700 000ha in Sudan, and Saudi Arabia's purchase of 500 000ha in Tanzania. The Democratic Republic of the Congo expects to shortly conclude eight million hectare deal with a group of South African businesses to grow maize and soya beans as well as poultry and dairy farming.

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India has lent money to 80 companies to buy 350 000ha in Africa. At least six countries are known to have bought large landholdings in Sudan, one of the least food-secure countries in the world.

Other countries that have acquired land in the last year include the Gulf states, Sweden, China and Libya. Those targeted include not only fertile countries such as Brazil, Russia and Ukraine, but also poor countries like Cameroon, Ethiopia, Madagascar, and Zambia.

De Schutter said that after the food crisis of 2008, many countries found food imports hit their balance of payments, "so now they want to insure themselves".

"This is speculation, betting on future prices. What we see now is that countries have lost trust in the international market. We know volatility will increase in the next few years. Land prices will continue to rise. Many deals are even now being negotiated. Not all are complete yet."

He said that about one-fifth of the land deals were expected to grow biofuel crops. "But it is impossible to know with certainty because declarations are not made as to what crops will be grown," he said.

Some of the world's largest food, financial and car companies have invested in land.

Alpcot Agro of Sweden bought 120 000ha in Russia, South Korea's Hyundai has paid $6,5-million for a majority stake in Khorol Zerno, which owns 10 000ha in Eastern Siberia, while Morgan Stanley has bought 40 000ha in Ukraine. Last year South Korea's Daewoo signed a 99-year lease for 1,3m hectares of agricultural land in Madagascar.

Devinder Sharma, analyst with the Forum for Biotechnology and Food Security in India, predicted civil unrest.

"Outsourcing food production will ensure food security for investing countries but would leave behind a trail of hunger, starvation and food scarcities for local populations," he said. "The environmental tab of highly intensive farming -- devastated soils, dry aquifer, and ruined ecology from chemical infestation -- will be left for the host country to pick up."

In Madagascar, the Daewoo agreement was seen as a factor in the subsequent uprising that led to the ousting of the president, Marc Ravalomanana. His replacement, Andry Rajoelina, immediately moved to repeal the deal.

Concern is mounting because much of the land has been targeted for its good water supplies and proximity to ports. According to a report last month by the London-based International Institute for Environment and Development, the land deals "create risks and opportunities".

"Increased investment may bring benefits such as GDP growth and improved government revenues, and may create opportunities for economic development and livelihood improvement. But they may result in local people losing access to the resources on which they depend for their food security -- particularly as some key recipient countries are themselves faced with food security challenges", said the authors.

According to a US-based thinktank, the International Food Policy Research Institute, nearly $20bn to $30bn a year is being spent by rich countries on land in developing countries. - guardian.co.uk © Guardian News and Media 2009
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@"Some of the largest deals include South Korea's acquisition of 700 000ha in Sudan, and Saudi Arabia's purchase of 500 000ha in Tanzania. The Democratic Republic of the Congo expects to shortly conclude eight million hectare deal with a group of South African businesses to grow maize and soya beans as well as poultry and dairy farming."

So, South Africa is among the 'rich' countries buying up land in 'poor' countries. One would not guess that from the Headline the Editor saw fit to attach to this story. Which South African countries are involved and under what terms will they operate in Congo?


@"Other countries that have acquired land in the last year include the Gulf states, Sweden, China and Libya."

The Gulf States always bear watching especially where land ownership is an issue. Sweden's investment is in Russia which makes some geographical sense and the Swedes have a history of eco-consciousness that may be a factor in their deals. However, the latter two "rich countries" --Libya and China---should be of particular interest to Africa given the ambitions of Libya's leader to rule Africa and the support for Zim and Sudan from China that has resulted in disaster for Sudan and the plundering of Zim's mineral assets.
At the very least, the terms of the 'deals' being made with new 'host countries' should be made public.

BTW: What idiot would 'sell' land to a foreign power, any foreign power? Surely it makes far more sense for poor countries to negotiate long-term LEASES rather than lose the rights to their national land assets forever?

And what about a quid pro quo? Why would a government risk environmental degradation of its land mass through over-farming and leave the people of the host country to starve???? Surely the terms of the deal must provide food at an affordable price for the locals as well as agricultural jobs? But then again, the Chinese are setting up farms in Sudan where the workers are imported--from China. Don't the Chinese have confidence in their African 'brothers'?

As written, this story is an alarming 'Doomsday Chronicle'. There MUST BE PROTECTIONS FOR THE HOST POPULATIONS AND ECO-PROTECTIONS WRITTEN IN TO THESE AGREEMENTS. Surely, international law must address these issues?
on July 4, 2009, 11:44 am
I wondered when you were getting round to noticing that. Let alone working out what Africa looks like ranting about the "West" and "Neo-colonialism" as the South Koreas and Saudi Arabians buy up their farmland. PS Some of the contracts appear to suggest that if there was a famine in Africa, then the crops from these farms would be exported out of the starving African Countries and to the Middle and Far East, (exporting food FROM a famine hit country) and then the would sell it back as AID to the original starving Africna country it came from. Who said African politicians were a bunch of currupt incompetents?
Alisdair Budd on July 4, 2009, 4:18 pm
IZWE LETHU !!! This has been the Pan-Africanist slogan for decades. Now we see what happens when land is commodified and exposed to globalisation instead of being socialised.
Roll on, the peoples'struggle for the land which is the source of their life.
Costa Gazidis on July 4, 2009, 6:18 pm
Believe me, these new colonists have no intention of doing anything positive for the inhabitants. The citizens should also not expect any help from their (very corrupt) governments. The politicians are pocketing the spoils and are gleefully selling off their countries. There will never be honour among these thieves and again the ordinary people suffer. Africa chased away the only people who loved the continent as much as they do. They chased away the only Africans (albeit white) who knew how to make the continent safe and feed the people. Enjoy your new masters. They are going to do what the Europeans never did; enslave you in your own countries.
Cathy Kotze on July 4, 2009, 7:01 pm
M&G really needs a more honest headline editor / writer.

I love the way you refer to "rich countries" trying to create an impression of it being the likes of the USA; UK etc. In fact if you take out Sweden who is investing in Russia, the rest are Asian countries. If it was the USA your headline would almost certainly have read "Fears for the world's poor countries as the USA grab land". Be honest, say "Fears for the world's poor countries as the oil states and China grab land."

A couple of days ago your headline talked about "African capitalists" - which turned out to be an article predominantly about "African nationalists" - not the same thing.

Play fair!
Brencis Price on July 4, 2009, 8:43 pm
@ Delia- Basic greed and corrupt African politicians accounts for the arguments you correctly presented as potential safeguards for such deals. The nature of power mad money hungry corrupt politicians explains and justifies the rest.

No surprises if and when most of the confiscated farms in Zimbabwe end up in Chinese hands.
Ahed Johb on July 5, 2009, 6:55 am
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