China, Brazil Sign Corn Supply Agreement
News: The Brazilian government has negotiated an agreement with Chinese authorities that will see China receive corn imports from the South American nation, according to Food Business Review. Brazil, which has a corn surplus, is reportedly working to ensure it adheres to China's phytosanitary requirements, which will ensure that imported corn is free of both bugs and fungi. China primarily imports corn from the US, with Argentina having sent over its first shipment in August 2013.
BMI View: China's vast agricultural industry has seen strong growth in recent years, attracting investment from multinational manufacturers keen to exploit the country's vast population and economic growth by establishing a strong local production system. These investment-led agricultural improvements have been backed by government initiatives to boost agricultural efficiency. These measures are vital not only in terms of attracting investment but also in order to improve living standards among the majority rural population, boosting the economic contribution of these sectors of society.