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width="1" height="1" //divpRich governments and corporations are triggering alarm for the poor as
they buy up the rights to millions of hectares of agricultural land in developing countries in an
effort to secure their own long-term food supplies./ppThe head of the UN Food and Agriculture
Organisation, Jacques Diouf, has warned that the controversial rise in land deals could create a
form of "neo-colonialism", with poor states producing food for the rich at the expense of their own
hungry people./ppRising food prices have already set off a second "scramble for Africa". This week,
the South Korean firm Daewoo Logistics announced plans to buy a 99-year lease on a million hectares
in Madagascar. Its aim is to grow 5m tonnes of corn a year by 2023, and produce palm oil from a
further lease of 120,000 hectares (296,000 acres), relying on a largely South African workforce.
Production would be mainly earmarked for South Korea, which wants to lessen dependence on
imports./pp"These deals can be purely commercial ventures on one level, but sitting behind it is
often a food security imperative backed by a government," said Carl Atkin, a consultant at Bidwells
Agribusiness, a Cambridge firm helping to arrange some of the big international land
deals./ppMadagascar's government said that an environmental impact assessment would have to be
carried out before the Daewoo deal could be approved, but it welcomed the investment. The massive
lease is the largest so far in an accelerating number of land deals that have been arranged since
the surge in food prices late last year. /pp"In the context of arable land sales, this is
unprecedented," Atkin said. "We're used to seeing 100,000-hectare sales. This is more than 10 times
as much."/ppAt a food security summit in Rome, in June, there was agreement to channel more
investment and development aid to African farmers to help them respond to higher prices by
producing more. But governments and corporations in some cash-rich but land-poor states, mostly in
the Middle East, have opted not to wait for world markets to respond and are trying to guarantee
their own long-term access to food by buying up land in poorer countries./ppAccording to diplomats,
the Saudi Binladin Group is planning an investment in Indonesia to grow basmati rice, while tens of
thousands of hectares in Pakistan have been sold to Abu Dhabi investors. /ppArab investors,
including the Abu Dhabi Fund for Development, have also bought direct stakes in Sudanese
agriculture. The president of the UEA, Khalifa bin Zayed, has said his country was considering
large-scale agricultural projects in Kazakhstan to ensure a stable food supply. /ppEven China,
which has plenty of land but is now getting short of water as it pursues breakneck
industrialisation, has begun to explore land deals in south-east Asia. Laos, meanwhile, has signed
away between 2m-3m hectares, or 15% of its viable farmland. Libya has secured 250,000 hectares of
Ukrainian farmland, and Egypt is believed to want similar access. Kuwait and Qatar have been
chasing deals for prime tracts of Cambodia rice fields./ppEager buyers generally have been welcomed
by sellers in developing world governments desperate for capital in a recession. Madagascar's land
reform minister said revenue would go to infrastructure and development in flood-prone areas.
/ppSudan is trying to attract investors for almost 900,000 hectares of its land, and the Ethiopian
prime minister, Meles Zenawi, has been courting would-be Saudi investors. /pp"If this was a
negotiation between equals, it could be a good thing. It could bring investment, stable prices and
predictability to the market," said Duncan Green, Oxfam's head of research. "But the problem is,
[in] this scramble for soil I don't see any place for the small farmers." /ppAlex Evans, at the
Centre on International Cooperation, at New York University, said: "The small farmers are losing
out already. People without solid title are likely to be turfed off the land."/ppDetails of land
deals have been kept secret so it is unknown whether they have built-in safeguards for local
populations./ppSteve Wiggins, a rural development expert at the Overseas Development Institute,
said: "There are very few economies of scale in most agriculture above the level of family farm
because managing [the] labour is extremely difficult." Investors might also have to contend with
hostility. "If I was a political-risk adviser to [investors] I'd say 'you are taking a very big
risk'. Land is an extremely sensitive thing. This could go horribly wrong if you don't learn the
lessons of history."/pdiv style="float: left; margin-right: 10px; margin-bottom: 10px;"ullia
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