Saudi firm buys farmland in Argentina to secure animal feed

[Laidback Al]

Saudi firm buys farmland in Argentina to secure animal feed

By Adam Schreck, Associated Press

DUBAI, United Arab Emirates ? Saudi Arabia's largest dairy company said this week that it is buying Argentine farm operator Fondomonte for $83 million to secure access to a supply of animal feed. . . . . .

Despite its scorching desert climate, Saudi Arabia for decades produced millions of tons of homegrown wheat with the help of generous farm subsidies. It is now trying to wind down domestic production because of concern over dwindling water supplies. . . . .

"This is a relatively significant move, that they're actually acquiring a company," said Farouk Miah, an analyst at NCB Capital in Riyadh. "If anything, I think this is the beginning of a trend." . . . .

As their populations boom, oil-rich Gulf Arab nations have shown increased interest in buying farmland and other agricultural assets overseas to ensure reliable food supplies. . . . . .

http://www.usatoday.com/money/indus...25/argentina-farmland-saudi-arabia/52142448/1

 

[JJackson]

Re: Saudi firm buys farmland in Argentina to secure animal feed

Commoditisation is a pernicious, if poorly appreciated side effect of globalisation.
It pits the buying power of the rich world against those of the poorest on the planet in a much more immediate way. There is little a subsistence farmer in Zambia or Kenya can do if my desire for cut flowers or out of season green beans means I outbid him for the water in the local creek.

Of course I do not see the consequence of my actions in a direct way. The supermarket buys the beans on the global market but some local agri-business has decided to employ an intensive, irrigated farming system. The creek they draw water from used to supply many small farmers but now there is not enough to go around. This has been becoming an increasing problem for a while and the sale, or long lease, of prime agricultural land to foreign corporations or governments is now also growing.
It used to be that distance insulated the the $ a day world from the disparities in buying power of the rich world. A subsistence farmer with a little land and water could survive outside the monetary system but that buffer is being eroded and the consequence are devastating, not for us the beans taste fine, but for them.
We need a better system or they will come here and demand a fairer shake.

 

[JJackson]

Re: Saudi firm buys farmland in Argentina to secure animal feed

The UN gets in on the debate

UN adopts historic 'land grab' guidelines


The United Nations has adopted global guidelines for rich countries buying land in developing nations.
The voluntary rules call on governments to protect the rights of indigenous peoples who use the land.
It is estimated that 200m hectares, an area eight times the size of Britain, has been bought or leased over the past decade, much of it in Africa and Asia.