Competiton for resources Praveen Jha, Center for Economic Studies and Planning Jawaharlal Nehru University New Delhi IDEAs Conference Muttukadu 2012

Land under Investor Claim 2004-Early 2009 (Approved Projects Only) EthiopiaGhanaMadagascarMaliSudanTotal Total land allocated (ha) 602,760*452,000*803,414*162,850*471,660*2,492,684* No. of projects approved (over 1000 ha) 1573*6*7*11*184* Largest land allocation (ha) 150,000400,000452,500100,000109,200 Total Investment commitments (US$) 78,563,023*30,000,000*79,829,524*291,988,688*439,600,000*919,981,235* Data source: Country Studies; * denotes incomplete data

Based on Media reports: Overseas Land Investments to Secure Food Supplies, a. Government to Government Target CountryInvestor CountryNature of Deal Democratic Republic of CongoChina (ZTE International) 2.8 million hectare secured for biofuel oil palm plantation EthiopiaIndia US $4 billion invested in agriculture, flower growing, and sugar estates KenyaQatar 40,000 hectare leased for fruit and vegetable cultivation in exchange for funding US $ 2.3 billion MalawiLibyaUnknown area of farmland Mali100,000 hectare secured for rice MozambiqueChina US $ 800 million investment to expand rice production from 100,000 to 500,000 metric tons; political opposition to deal SudanEgyptLand secured to grow 2 million tons of wheat annually

Continued…. SudanJordan 25,000 hectare secured for livestock and crops SudanKuwait “Giant” strategic partnership; no further information SudanQatar Joint holding company set up to invest in agriculture SudanSouth Korea690,000 hectare secured for wheat SudanUnited Arab Emirates (UAE)378,000hectare secured by UAE SudanUAE (Abu Dhabi Fund for Development) 30,000 hectare secured for corn, alfalfa, and possibly wheat, potatoes and beans TanzaniaSaudi Arabia500,000 hectare requested for lease TanzaniaChina (Chongqing Seed Corp)300 hectare secured for rice ZambiaChina 2 million hectare requested for jatropha (biofuel) CambodiaKuwaitLand leased for rice

Continued…. CambodiaVietnam100,000 hectare secured for rubber IndonesiaSaudi Arabia (Bin Laden Group) LaosVietnam100,000 hectare secured for rubber PakistanUAE (Abraaj Capital)324,000 hectare purchased PhilippinesBahrain10,000 hectare secured foragrofishery PhilippinesChina (Company unknown)1.24 million hectare; deal put on hold PhilippinesQatar100,000 hectare leased TurkeyBahrain (Agricapital) US$500 million agricultural project; may rise to US$3-$6 billion UkrainLibya247,000 acres or hectares secured Source:

Government to Private Sector Target CountryInvestor CountryNature of Deal AngolaLonrho (UK) 25,000 hectare leased for rice. Lonrho is negotiating for a further 125,000 hectare in Mali and Malawi Democratic Republic of CongoAgriculture South Africa (South Africa) 10 million hectares offered to farmers’ union EthiopiaUnknown private Investors (Saudi Arabia) Land leased in exchange for US$100 million investment MadagascarDaewoo (South Korea)1.3 million hectare secured for maize NigeriaTrans4mation Agritech Ltd (UK)10,000 hectare secured SudanJarch Capital (USA)400,000 hectare in Southern Sudan with local army commander Source:

Private Sector to Private sector Target CountryInvestor CountryNature of Deal East Africa Agribusiness (Ethiopia) Dubai World Trading Company (UAE) 5,000 hectare secured in joint venture for Tea Khorol Zerno (Russia)Hyundai (South Korea)10,000 hectare secured in company takeover; Hyundai has plans to purchase another 40,000 hectare in Russia by 2012 Source:

Government to unknown (Private) Target CountryInvestor CountryNature of Deal CameroonUnknown company (China)10,000 hectares secured for rice production EgyptJenat (Saudi Arabia) 10,000 hectares secured for barley, wheat, and livestock feed EthiopiaFlora EcoPower Germany 13,000 hectares secured for biofuel crops; contract farming arrangement EthiopiaSun Biofuels (UK)Land secured for jetropha (biofuel ) MozambiqueSkebab (Sweden)100,000 hectares secured for biofuel crops MozambiqueSun Biofuels (UK)Land secured for jetropha (biofuel) TanzaniaCAMS Group (UK) 45,000 hectares purchased for sweet sorghum (biofuel) TanzaniaSun Biofuels (UK)5,500 hectare secured for jetropha (biofuel) ChinaGoldman Sachs (USA)10 poultry farm purchased for US$300 million and pig farms purchased for between $150 and $200 million

Continued…. BrazilMitsui (Japan)100,000 hectares secured for soybeans UkrainMorgan Stanley (USA)40,000 hectare purchased UkrainLandkom (UK)100,000 hectare leased RussiaAlpcot Agro (Sweden)128,000 hectare secured RussiaTrigon (Denmark)100,000 hectare secured RussiaBlack Earth Farming (Sweden)331,000 hectare secured under subsidiaries Source:.

Land Acquisition in Asian Countries Target CountryInvestor CountryNature of Deal CambodiaKuwaitLand leased for rice CambodiaVietnam100,000 hectare secured for rubber IndonesiaSaudi Arabia (Bin Laden Group) LaosVietnam100,000 hectare secured for rubber PakistanUAE (Abraaj Capital)324,000 hectare purchased PhilippinesBahrain10,000 hectare secured for agro-fishery PhilippinesChina (Company unknown)1.24 million hectare; deal put on hold PhilippinesQatar100,000 hectare leased TurkeyBahrain (Agricapital) US$500 million agricultural project; may rise to US$3-$6 billion UkraineLibya98,800 hectares leassed Source:.

A Profile of land Acquisition by India Investor Name/ Company Name Region/CountryInvestment Type Land Transfer (Area in Hacters) Ruchi Soya Industries Gambella and Benishangul Gumaz States (Ethiopia) Soybean, Bio-fuel seeds152,649 White FieldSNNPR (Ethiopia)Cotton10,000 BHOGambella (Ethiopia) Edible oil Crops, Bio-fuel seeds Sannati Dimi District in Gambella (Ethiopia) Rice10000 VerdantaGambella (Ethiopia)Tea and spice plantations5,000 ShamporjiB/Gumuz (Ethiopia)Pongamia (Bio fuel)50,000 CLC (Spentex)B/Gumuz & Amara (Ethiopia)Cotton25000 Karuturi Agro Products PLCGambella (Ethiopia) Palm cereals, rice & Sugar cane 340,000 Offer to Indian FirmsSenegal148,263 Group of Punjabi FarmersEthiopiaRice100,000

Continued… Karuturi Agro Products PLC Jikao and Itang Districts of Gambella (Ethiopia) Wheat, Palm, Pulses, Cut Roses. 300,000 Varun Agro Ltd. Madagascar (Sofia Region) Rice, Corn and Pulses.232,000 Yes BankTanzania Rice and Wheat30, ,000 KS Oils (Kalimathan Region), Indonesia Palm Plantation(130, ,039) Chadha Agro Plc.(Gugi Zone) Ethiopia Sugar Project100,000 Sterling GroupArgentina Olive and Peanuts farming2,000+17,000 Olam InternationalGabon Palm Oil300,000 Olam InternationalUruguay Dairy Farming16,000 Olam InterationalArgentina Peanuts17,000 Solvent ExtractorsLatin america SoybeanPlanning acquire land Uttam SurotechEthiopia Sugar FactoryUS$ 100 million contracts

Continued… Shree Renuka SugarsBrazil Sugarcane production18, ,000 McLeod Russel IndiaUganda Purchased Tea PlantationsUS$ 25 million ACIL Cotton IndustriesBrazil, Congo and Ethiopia Announced plans to investUS$ 15 million MNTC Ltd (state-owned)Kenya and Tanzania Plans to (as of Oct 2010) grow pulses. Adani Group Africa, Brazil, Argentina, Indonesia and Malaysia Plans to (as of Oct. 2010) set up farms to cultivate edible oil and pulses. Neha International Ethiopia (Oromia Region – in Holetta and near Bako) Leased land for floriculture, rice, maize, oilseeds and pulses. Jay Shree Tea & IndustriesRwanda, UgandaLeased land for tea plantations India is offeredSenegal Processed rice, corn, peanuts and cotton 150,000 Neha InternationalZambiaAgricultural development100,000

Features of Disclosed Contracts with Indian Agricultural Companies Operating in Ethiopia CompanyLocationCrops Land Size (hectares) WaterTaxesRights to BuildTerm BHO Bio Products Plc. Gambela Region Cereal, pulses and edible oils crops 27,000 Company has the right to build dams, water boreholes and irrigation systems. Exemptions from taxes on imports of capital goods and from paying taxes on repatriated profits. Company has the “right” to provide power, health clinics, schools, etc. 25 years Karuturi Agro Products Plc Gambela Region Palm, cereal and pulses 100,000 hectares with rights to conditionally acquire another 200,000 hectares Company has the right to use water from rivers or ground water, to build dams, water boreholes and irrigation systems Exemptions from taxes on imports of capital goods and from paying taxes on repatriated profits. Company has the “right” to provide power, health clinics, schools, etc. 50 years Ruchi Agro PlcGambela RegionSoya beans25,000 Company has the right to build dams, water boreholes and irrigation systems Exemptions from taxes on imports of capital goods and from paying taxes on repatriated profits. Company has the “right” to provide power, health clinics, schools, etc. 25 years Sannati Agro Farm Enterprisen Pvt. Ltd. Gambela Regional State, Agnua Zone, Dima District Rice and rotational pulses and cereal crops 10,000 Company has the right to build dams, water boreholes and irrigation systems Exemptions from taxes on imports of capital goods and from paying taxes on repatriated profits. Company has the “right” to provide power, health clinics, schools, etc. 25 years Verdanta Harvests Plc. Gambela Regional State, Mezhender Zone, Godere District Tea and allied products (spices) 3012Exemptions from taxes on imports of capital goods and from paying taxes on repatriated profits. Company has the “right” to provide power, health clinics, schools, etc. 50 years