US-based agribusiness giant J R Simplot has revealed ambitious plans to expand its agricultural production in China; a move that it says will help the nation cope with the increased competition coming with its entry into the World Trade Organisation (WTO).
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Executives from the company say that its potato production from amongst its 5,000 growers in northern areas of Beijing will increase five-fold. Farmers in the world’s largest agricultural nation will also start large-scale planting of American sweetcorn.
Simplot’s international sales and marketing director, R. Kent Ernest, told China Daily: “Simplot will strengthen cooperation with local Chinese farmers and help sharpen the competitive edge of China-produced agricultural products.
“Simplot’s operation model in relations with local farmers may be a good method to follow in the effort to help resolve some agricultural problems arising after China’s WTO entry.”
Simplot, a major supplier of French fries for fastfood giants McDonald’s and KFC, is the only foreign company so far to have organised localised potato growing in China. Potatoes currently make up about half of the company’s US$3.5bn in annual revenues, and Simplot insists that the increase in output will increase farmers’ incomes as well.
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By GlobalDataBy insisting under contract that growers use designated potato seeds, chemical fertilizers, standardised irrigation facilities and adequate farming techniques, Simplot argues that its model enhances the anti-risk and profit-making capability of Chinese farmers.
