China Agribusiness Q2 2020
Agricultural production in China has recorded exceptional growth in recent years, driven by an expansion in areacultivated and strong growth in productivity. Output growth is slowing in some of the largest producing regions owing to pollutionand land constraints. The government has acknowledged the challenge and is more reformist than ever, aiming to boostmechanisation and eventually allow the commercialisation of genetically modified crops in the country. However, the ongoingoutbreaks of African swine fever as well as the US-China trade dispute will be extremely disruptive to the country's livestock,grain and oilseed production in the short term. In the long term, robust consumption growth and the ongoing industrialisation ofagriculture will favour the development of the livestock and dairy sectors. China's agribusiness sector will be very dynamic and willsee investment opportunities in agtech integration, input use and a robust consumer story.
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