Chinese company to develop large soybean and corn farms in Angola

A unit of Chinese state-owned conglomerate Citic Ltd. will develop large soybean and corn farms in Angola as the world’s second-largest economy seeks to secure long-term supplies amid a trade war with the U.S., Bloomberg reported.

Citic Construction Co. is leading a group that will invest $250 million over five years to develop 100,000 hectares of land, according to the company’s managing director in Angola.

While China and the U.S. have agreed to a trade framework to resolve their tariff disputes, details and outlook for future trade decisions remain unclear. Last month, the North Asian country ordered its first large shipment of soybean meal from Argentina and has turned to a range of other suppliers to reduce its reliance on the U.S. Angola is seeking to exploit “the opportunities created by global geopolitics, trade wars and market blockages,” Agriculture and Forestry Minister Isaac dos Anjos said at a briefing in Luanda. “This agreement gives us a guaranteed buyer for Angolan soybeans. On Thursday, we will sign another agreement with a second Chinese company to expand food exports to more than 500,000 tons.”

According to the minister, about 60% of the production will be exported to China, while the rest will be used for local consumption. By next year, the area under cultivation will reach 10,000-20,000 hectares, and the soybean and corn harvest is planned to reach 15,000 tons per year, the company noted. Land clearing work has already begun.

By the end of 2024, China imported 105 million tons of soybeans, mainly for livestock feed. The United States supplied about one-fifth, but that share has been declining in recent years as Beijing shifted its main producers.

Tags: China, corn, soybean, Angola