China’s breakneck growth has resulted in rapid urbanization and an insatiable appetite for everything. Consequently, food security concerns abound, and the Chinese government is implementing initiatives to assure a food supply for its 1.4 billion people. China’s limited arable land and scarce water supply puts pressure on the country to search outside its borders for reliable agricultural sources. Through China’s “Go Outbound” policy, food and agriculture companies are encouraged to participate in international markets. Latin America, with its advantages in the agricultural realm, is well positioned to benefit from this trend.
In this White Paper, SinoLatin Capital analyzes why and how Chinese food and agriculture companies are becoming more intertwined to the global food markets as well as the three main strategies they use to power growth: direct equity investment, land acquisitions and strategic cooperation. Latin America, the world’s most important agricultural region, likewise plays a fundamental role in all three.
SinoLatin Capital (www.sinolatincapital.com) is the first financial services firm focused exclusively on M&A and private equity transactions between China and Latin America. The firm’s core industries are agribusiness, mining, energy and infrastructure. SinoLatin Capital’s partners include both Latin American and Chinese individuals who have executed US$26 billion worth of transactions in their careers. The partners have formerly worked for bulge-bracket Wall St. firms and mayor Chinese enterprises and speak Spanish, English, Portuguese and Chinese. SinoLatin Capital is headquartered in Shanghai, China and has offices in New York City and Lima, Peru.