Sowing seeds of success

by Dave

Follow-up to the NYT article a few days ago. In fact, a couple of lines in this article refer to quotes in that article.

viaThe Economic Times
Countries are on a global hunt to secure for themselves supplies of all commodities — metals, energy and food — that they consider of strategic importance for their future development. Politics be damned.

No country scalded by a volatile international market in recent months wants to depend on intermediary trading companies and vagaries of fluctuating prices. Governments have realised that it is often impossible to predict supply squeezes, which can occur due to causes below their radar. That makes protecting a country’s supply pipeline from drying up even more difficult.

Beijing also plans to encourage Chinese companies to buy farmland abroad, particularly in Africa and South America, to help guarantee food security. India itself is among those seeking to augment local supplies with self-owned resources overseas. Public sector oil marketing companies plan to invest in Brazilian ethanol to supplement local supply and protect against failure of Indian cane crop. A handful of Indian edible oil companies may use Exim Bank to buy 10,000 hectares (at $3000/hectare) of fertile farmland to grow soyabean, maize and sunflower in Uruguay and Paraguay.

[S]trategic resources are at heightened risk from growing demand, fragmented supply chains, climate change, political turmoil and volatile financial markets.

TwitterFriendFeedDeliciousLinkedInFacebookDiggShare