China or abroad to buy farmland enterprises to provide subsidies

March 9 Afternoon News According to foreign reports, Tianjin Poly Dragon Group senior said that China to ensure that the source of food supplies this year may be to buy farmland outside the domestic enterprises to subsidize.　　According to Reuters, Sun Weijun, a senior group, said the government wanted domestic companies to get more farmland overseas, a clear indication that China began speeding up its arable land in the wake of rising agricultural prices.　　In 2007-2008, when commodity prices were rising most sharply, countries from South Korea to Saudi Arabia, big and small, agreed to buy farmland and lock in cheap food shipments. Poly Dragon Group is China's largest unlisted edible oil processing manufacturers.　　The group bought oil coconut plantations on the Indonesian island of Borneo five years ago and currently has 100,000 hectares of arable land.　　"The Chinese government has supported our projects and they want to encourage other Chinese companies to have upstream operations like ours," Sun Weijun told reporters on the sidelines of the Kuala Lumpur Stock Exchange Palm Oil conference.　　"They may subsidize this type of business, perhaps this year," he added, but declined to elaborate on the amount of subsidy the Government was willing to provide.　　China is likely to use subsidies to curb expensive imported food in response to rising food prices.　　The group said it was the first Chinese company to have oil coconut plantations in Southeast Asia, buying the first farmland in Kalimantan province five years ago. "We have invested 8 billion yuan (1.2 billion US dollars) in that field, and we hope to expand the arable land to 100,000 hectares in five years ' time."　　Sun Weijun said.　　The 24,000-hectare palm oil plantation in Indonesia produced 20,000 to 30,000 tonnes of palm oil this year.　　Sun Weijun said, compared to China's annual average of about 4.6 million tons of palm oil imports, such production is still very small, but Poly Dragon is the first integrated downstream and upstream edible oil business of Chinese private enterprises. "Many investors, mainly growers, are interested in our freight services and refineries, and they want to ship their palm oil directly to China," he said. "China's Galaxy futures show that China imports about 4.6 million tonnes of palm oil a year, accounting for more than one-fifth of the total vegetable oil imports," the company said.