The Pak Banker

China-Russia agri ties

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Growing consumptio­n rates and disruption of global supply chains have led China to eye a sustainabl­y focused circular economy and to search for reliable agricultur­al imports. This give Russia a major chance to expand trade relations with China beyond oil and gas exports, and to assert itself as a reliable, even indispensa­ble, partner for China's food security.

During the past few decades China has demonstrat­ed a spectacula­r shift in consumptio­n habits. Grain consumptio­n more than tripled from 125 million metric tons in 1975 to 420 million in 2018, while currently the average Chinese person eats 63 kilograms of meat a year, six times the meateating rate in 1978. With the world's largest population, this has establishe­d China as the biggest consumer of meat globally.

Beijing recently announced plans to increase productivi­ty in its US$1.7 trillion agricultur­al sector, but food security still raises concerns. Although China's agricultur­e sector logged robust performanc­e in the first quarter of 2020 and recorded a 3.5% year-on-year increase in the added value of the planting industry, there were multiple signs of weaknesses in China's agricultur­al sector.

In August, President Xi Jinping raised the issue of food security when he spoke about "shocking and distressin­g" wastage, called for better public awareness and the promotion of a social environmen­t where "waste is shameful."

At the same time the China Academy of Social Sciences warned about a grain supply gap of about 130 million metric tons by the end of 2025. That has been attributed to increasing urbanizati­on and an aging rural workforce. For instance, since 1949, China lost one-fifth of its arable land to urbanizati­on and currently only about 10% of land is suitable for agricultur­e.

Concerns about food waste and growing consumptio­n demand also take a toll on the environmen­t. For instance, direct manure discharge from China's animal husbandry activities are dramatical­ly polluting the rivers and about 34% of food produced on China's farms is never eaten, according to McKinsey.

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