Food prices are set to increase as China’s farmland is lost to development. In the past dozen years, a total of 8.33 million hectares (20.6 million acres) of crop-producing land has been claimed for factories and residences as the urban population continues to swell.
“China’s increased demand for agricultural commodities will mean an increase in prices for the entire world market,” said David Stroud, chief executive officer of New York-based hedge fund TS Capital Partners. “China can outlast any other bidders for the commodities it desires.”
Source: Bloomberg