April 22, 2015

Australia-China Trade Report – Agribusiness Case Study

One of Shanghai’s largest private real estate developers, Shanghai Zhongfu, faced the challenge to integrate off-take from its planned Australian operation into the long supply chain of China’s domestic market.

Established in 1992, Shanghai Zhongfu Group is one of Shanghai’s largest private real estate developers, with over 20 years’ business experience.

Over the years the Group has developed some well-known buildings in Shanghai such as Zhongfu Building and is responsible for several old city reconstruction projects in Pudong and Puxi districts. Recently, Shanghai Zhongfu Group has expanded into areas such as network communications and auctioneering.

In 2012, Shanghai Zhongfu won the right to lease and develop the second stage of the Ord River irrigation area with 13,400ha of land under its control and projected investment of $700 million in the local agriculture, processing and related infrastructure. Shanghai Zhongfu sees this project as its prime experiment in local integration.

Above all, the Ord River project is Shanghai Zhongfu’s first overseas investment project. As a diversifying property developer in China, Shanghai Zhongfu came across the opportunity to invest in Western Australian agriculture by chance and was helped by Western Australian contacts and the state government, which convinced the chairman that an agricultural base in Australia was an opportunity for his company to tap into China’s fast-growing demand for agricultural products.

Source: NAB Sponsored Australia-China Trade Report. Page 28.

Source: NAB Sponsored 2014 Australia-China Trade Report Commissioned by The Australia China Business Council (ACBC).

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