As China Cuts Imports, Southeast Asia Key to Aussie Grain Growth – Rabobank
China’s Ministry of Agriculture has decreed that the country needs to cut its yearly grain imports to 11 million tons – or by 43% compared to 2013 imports, until the country’s state reserves have declined. As China pushes to cut imports, Rabobank’s senior vice president of agri-finance, Stirling Liddell, says that Southeast Asia will be key to the growth of Australia’s grain industry.
When considering where the interest and investment is happening, countries such as Indonesia, Vietnam, Thailand, and the Philippines are at the fore.
“But where’s the development in the future? As we look forward and see where the investment is, where the interest is, which economies are starting to move – it really starts to center on Southeast Asia,” says Liddell.
And while Russia has positioned itself to claim market share in North Africa, Australian exporters are opting to open new markets in Southeast Asia, where demand for Australian wheat in particular is high.