By Javier Blas in London

Published: November 18 2008 18:45 | Last updated: November 18 2008 18:45

Daewoo Logistics of South Korea has secured farmland in Madagascar to grow food crops for Seoul, in a deal that diplomats and consultants said was the largest of its kind.

The company said it had leased 1.3m hectares of farmland – about half the size of Belgium – from Madagascar’s government for 99 years. It plans to ship the maize and palm oil harvests back to South Korea. Terms of the deal were not disclosed.

The pursuit of foreign farm investments is a clear sign of how countries are seeking food security following this year’s crisis – which saw record prices for commodities such as wheat and rice and food riots in countries from Egypt to Haiti.

Prices for agricultural commodities have tumbled by about half from such levels but countries remain concerned about long-term supplies.

The United Nations’ Food and Agriculture Organisation warned this year that the race by some countries to secure farmland overseas risked creating a “neo-colonial” system. Those fears could be increased by the fact that Daewoo’s farm in Madagascar represents about half the African country’s arable land, according to estimates by the US government.

Shin Dong-hyun, a senior manager at Daewoo Logistics in Seoul, said the company would develop the arable land for farming over the next 15 years, using labour from South Africa, and intended to replace about half South Korea’s maize imports.

South Korea, a heavily populated but resource-poor nation, is the fourth-largest importer of maize and among the 10 largest buyers of soyabeans.

Carl Atkins, of consultants Bidwells Agribusiness, said Daewoo Logistics’ investment in Madagascar was the largest it had seen. “The project does not surprise me, as countries are looking to improve food security, but its size – it does surprise me.”

Concepción Calpe, a senior economist at the FAO in Rome, said the investment came after this year’s food crisis. “Countries are looking to buy or lease farmland to improve their food security,” she said.

Al-Qudra Holding, an investment company based in Abu Dhabi, said in August it planned to buy 400,000 hectares of arable land in countries in Africa and Asia by the end of the first quarter of 2009.

Meles Zenawi, prime minister of Ethiopia, said this year its government was “very eager” to provide hundreds of thousands of hectares of agricultural land to Middle Eastern countries for investment.

Copyright The Financial Times Limited 2008

http://thelede.blogs.nytimes.com/2008/11/1...half-a-country/

http://www.iht.com/articles/ap/2008/11/19/...gascar-Corn.php

http://news.bbc.co.uk/2/hi/business/7737643.stm



A ridiculously unbalanced deal in favor of Korea.
I'm starting to think Korean negotiators are some of the best in the world.



Daewoo to cultivate Madagascar land for free

By Song Jung-a and Christian Oliver in Seoul, and Tom Burgis in Johannesburg

Published: November 19 2008 17:18 | Last updated: November 19 2008 17:18

Daewoo Logistics of South Korea said it expected to pay nothing to farm maize and palm oil in an area of Madagascar half the size of Belgium, increasing concerns about the largest farmland investment of this kind.

The Indian Ocean island will simply gain employment opportunities from Daewoo’s 99-year lease of 1.3m hectares, officials at the company said. They emphasised that the aim of the investment was to boost Seoul’s food security.

“We want to plant corn there to ensure our food security. Food can be a weapon in this world,” said Hong Jong-wan, a manager at Daewoo. “We can either export the harvests to other countries or ship them back to Korea in case of a food crisis.”

Daewoo said it had agreed with Madagascar’s government that it could cultivate 1.3m hectares of farmland for free when it signed a memorandum of understanding in May. When the company signed the contract in July, it agreed to discuss costs with Madagascar. But Daewoo now believes it will have to pay nothing.

“It is totally undeveloped land which has been left untouched. And we will provide jobs for them by farming it, which is good for Madagascar,” said Mr Hong. The 1.3m hectares of leased land is almost half the African country’s current arable land of 2.5m hectares.

But Madagascar could also benefit from Daewoo’s in­vest­ment in roads, irrigation and grain storage facilities.

However, a European diplomat in southern Africa said: “We suspect there will be very limited direct benefits [for Madagascar]. Extractive projects have very little spill-over to a broader industrialisation.”

Asian nations have increasingly looked to Africa to meet their resource needs in the past five years or so. China has been particularly aggressive in building up stakes in oilfields and mines on the continent, sometimes facing accusations of neo-colonialism.

But now the countries are moving from minerals and oil into food. Roelof Horne, who manages Investec Asset Management’s Africa fund, said he expected to see more farmland investments on the continent. “Africa has most of the underutilised fertile land in the world,” he said, though he cautioned that “land is always an emotive thing”.

Apart from Daewoo, an increasing number of South Korean companies are venturing into Madagascar, investing in projects from nickel mines to power plants. State-run Korea Resources recently signed a preliminary agreement with Madagascar to expand collaboration on resources development including mining projects for other metals.

Daewoo plans to start maize production on 2,000 hectares from next year and gradually expand it to other parts of the leased land. The company plans to plant maize on 1m hectares in the western part of Madagascar and oil palm trees on 300,000 hectares in the east.

The company plans to ship the bulk of the harvests back to South Korea and export some supplies to other countries. It is unclear if any of the production will remain in Madagascar, an impoverished nation where the World Food Programme provides food relief to about 600,000 people – about 3.5 per cent of the population.

The WFP, the UN agency in charge of emergency food relief, said more than 70 per cent of Madagascar’s population lives below the poverty line. “Some 50 per cent of children under three years of age suffer retarded growth due to a chronically inadequate diet,” it said.

The pursuit of foreign farm investments follows this year’s food crisis, which saw record prices for commodities such as wheat and rice, and food riots in countries from Egypt to Haiti. Prices for agricultural commodities have tumbled by about half from such levels but nations are concerned about long-term supplies.

Daewoo said it chose to invest in Madagascar because it remains relatively untouched by western companies. “The country could provide bigger opportunities for us as not many western companies are there,” said Mr Hong.

Daewoo plans to develop the arable land in Madagascar for farming over the next 15 years, and intends to provide about half South Korea’s maize imports. South Korea, a heavily populated but resource-poor nation, is the fourth-largest importer of maize.

So when South Korea extends its colonial ambitions abroad, its perfectly OK. In the eyes of Koreans, South Korea can simply do no wrong.

We learned from the best.

We do it our own way; without the need of guns and warships.

Korea is helping and developing Madagascar...sound familiar Chinil-Japanese?

Korea's recent wooing of many african states and establishing an African fund seems to be reaping benefits.
A Korean managed territory in Africa, especially in a large, single nation island in the Indian Ocean, will prevent any instabilities that may seep in from a nation with many land borders. It'll help spread Korean influence in the region, stabilize food prices, and get a head start on biofuels/canola.

I hope the Korean-Madagascar relationship will fourish!

Yes of course, without the guns.

Anyway, Madagascar has its benefits from this deal, so does Korea.

It does sound familiar, kind of like how Korea developed from 1910 to today. Only that in modern society today, genuine concern for helping third world nations would come in the form of ODA packages.

suck a d!ck, j.ap.


"just like how korea developed from 1910 to today"?
you j.aps wish you could get credit and justify yourselves.

much of korea's growth and most of its major conglomerates started after the Korean War, d!ck.

Japan has turned the acryonym ODA into "lets jumpstart japanese companies by giving them the job, and you poor guys can pay me back later." Don't hate just cuz nobody would give a deal like this to Japan; you dont need to kill millions to coerce other countries into giving you an inside deal.

You are letting your hwabyeong get the better of you.

But yes. I am sure that Park Chung Hee's economic model and the Zaibatsu influence on the Chaebols have nothing to do with Koreans amazing "growth". And the 800 billion dollar package from the 1965 deal with Japan and the handouts from the U.S. from participating in Vietnam are irrelevant as well.

All developed nations set aside a % of their budget for ODA to struggling third-world countries. Most contribute around .3%-1% of their national income, but South Korea does not even contribute .1%. Instead, Koreans are still shopping for bargain deals around the globe.

Ah, yes, that and that alone has created one of the world's largest economies, hasn't it?
Same can be said for Japan's high rate of industrialization during the Korean war, and all the handouts she has received from the US. Let alone thank Korea for not being partitioned today into a soviet north and american south. Fortunately for you, Japan wasn't the test subject among the two superpowers of the day due to the urgent US delivery of the two atomic bombs and prevent the soviets from taking any of the "home" islands. So shut up already and be a reserved, quiet islander, like you should be.

Again, congratulations on japan's ODA. If it's Korea's decision to set aside a smaller than normal ODA fund, then so be it, we'll do it our own way. Spreading your influence and achieving some sort of economic growth by taking advantage of countries similar to madagascar under ODA is in your country's own self interest. Don't be bitc.hing how Korea takes advantage of underdeveloped states, all nations with the capability will do so to differing extents.

Back to the original topic.

Here's some more info on the leased acquisition.

I never knew South Korea was one of the world's largest economies. Its not even in the top 10.

But I would think that if an entire generation of South Korean leaders were trained under the Japanese system, it would be the single biggest reason for South Korea's growth. Park Chung Hee himself openly boasted about the success of Meiji Japan and sent thousands of Koreans to Japan to study and mimic Japanese technology and management style. Its no wonder Japan came 1st when it came to technology transfers and investment in South Korea.

I don't see how Japan is taking "advantage" of other countries by providing free assistance. At least you don't see Japan colonizing half of a country's arable land for its own benefit. And knowing modern Korean management, the locals will probably be treated like dirt and will start to rebel once they figure out they have been duped like countless other countries where Korean companies set foot in.

Korea's economy is currently the 13th largest, it was 11th for several years before being passed up, you condescending fool. Who has had the head start?
http://en.wikipedia.org/wiki/Trillion_dollar_club

You're a complete idiot. Of course, Koreans and Korea in general was influenced under the japanese system since it hasnt even been a lifetime since the japanese colonized the peninsula; might as well adopt the closest system that works, just like how China's been using Korea's chaebol system. http://findarticles.com/p/articles/mi_hb50...s_/ai_n18286277

Exactly. Its still not in the top 10. I thought Korea always had to be #1!

It wasn't just adopted. South Korea was ruled by former officers trained by the Japanese military. President Park Chung Hee went so far as to adopt a Japanese name. Had it not been for the experienced leadership and the handouts from abroad, South Korea would still be a fourth-world country right now.

The industrialization in the west started only 50-100 years before Japan "colonialized" Korea.
So no matter, Korea would have adapted western industrialization.

Still, there were nearly zero japanese inventions.

It should be considered an act of war aggression by japan towards its peaceful neighbor korea.

Park Chung Hee was born during colonial Korea, of course he had a japanese name under the japanese naming policy.

Every country with some sort of potential gets FDI and handouts to maintain loyalty.
Like Japan didn't get a world of handouts and mercy from its white rulers.
Everything comes from hard work, and everything you say applies to Japan.

Shut your face with your 'ifs' and 'had it nots.'
Keep trolling, jokpari.

What about his decision to pay tribute to the Meiji period by naming the "Yusin" constitution after it? It is funny how even in Korean media, Park Chung Hee was portrayed as a Japanese-speaking dictator. Says a lot, doesn't it?

And why do Koreans have such a huge inferiority complex towards Whites and Westerners? When something is not right, there would always be a scapegoat to blame. To Koreans, Korea can never do no wrong.

Yusin constitution just means 'restoration.' where do you get that idea from?

I thought most asians thought japanese had the biggest inferiority complex towards US/Europe. Whatever the case, that's your opinion.

I'll end with saying that Korea is by far the most democratic state in east asia, when something goes wrong you will hear it from citizens. On the contrary, japanese will just sit around idle when something negatively affects them or their country, like the pacifists you are.

Didn't we attempt a similar deal with Mongolia? In fact, I seem to recall at least one failed attempt of similar nature in South America couple of years ago. Hopefully at least one of these deals can be a success and allow better management of farmlands.

Are you jealous of Korea?
I'm guessing you are not even Japanese to begin with.

Does the Meiji "Restoration" ring a bell?

Obviously not to Koreans, only Japanese see the importance & make big deal out of Meji crap.

I HATE THAT FOREIGNERS ARE NOT INTERESTED IN KOREA

I am so pissed off at Chinese, Japanese, Vietnamese and other Asians. Why is it that non-Asians such as whites, blacks or middle eastern people are all interested in learning about or visiting those countries, but they have no interest in Korea? It pisses me off so much. I have spent everyday almost 20 hours/day searching for any site on the internet where I can spread information and news saying that Korea is so much better than those countries.

Also, I wrote alot of messages insulting chineses, Japanese, flips, and those other dirty Asians on any Asian-themed website hoping that foreigners will change their minds and start becoming more interested in Korea. However, they usually just ignore me or laugh and call me "obnoxious". It makes me soo fu-king angry that I spend so much time and effort but nothing changes. Now, my health is started to be effected and I cannot eat well.

I am so worried about how our country's image compares to that of China, Vietnam, Japan, Taiwan, and Thailand. It's such an insult because white people seem to care more about a dirty ugly third world nation like Vietnam or Laos than Korea. I always have to look at the internet to make sure that noone says anything good about those countries and make sure that everyone sees my messages that show Korea to be the better country. I have started to miss school because of this addiction and worry.

That's exactly what pisses me off so much. Why do westerners worship and love Japanese or Chinese culture? You see alot of white Japanophiles or Sinophiles. However, no westerner ever has the long admiration for Korean culture as they do for Chinese, Japanese or even Thai culture. WHAT? That's so insulting that a westerner likes a dirty 3rd world nation of Thailand more than clean, superior Korea!

I have yet to meet a white Koreaophile. Sure, there are some, but they are complete weirdos...really fat, ugly, ESL teachers or total losers (Google "BundangBear" and you will see an example of this). On the other hand, I have met CEO's, lawyers, scientists, academics, and other professionals from Europe and N. America who are fans of Chinese and Japanese or SE Asian culture.

Sure, Korean culture is very popular in Vietnam, Philippines, Laos, or among 60 year old Japanese housewives but that's so embarrassing! I don't want my culture to be popular among such a low-class group of people and countries. I want Korea to be the only Asian country that comes to mind when young white hipsters in New York or San Francisco or London mention Asia. I want western academics to flood classes on Korean pottery building. I want to see Hangul on T-shirts and have Hangul tattoos being considered "hip" and cool. I hate seeing white guys go crazy over "henna" tattoos and Chinese characters. I hate seeing all those white people wanting to learn Chinese and Japanese, but not Korean.

I hate it when white people say they like China, Japan, and Taiwan., It drives me insane. I abolutely hate it when non-Asians think highl of only China, Taiwan, Japan, Vietnam, and those Asian countries other than Korea.

I could really care less if those white bastards diss and insult Korea. Also, I don't care if black kkumdoongis or other dirty "sub-Asians" like Flips or Cambodians insult Korea because it's like taking an insult from someone less than us.

However, when whites or westerners talk about how much the like China, Japan, or Taiwan, it makes me fuming angry. I really don't know why. I mean, even if they don't say anything bad about Korea, I still hate it when they talk good about those other countries. Why is it?

Don't say it's because as a Korean, I am jealous. Nothing can be further from the truth. I could care less about jjankes and waenom sekis. However, when white people compliment them, it makes my blood boil.

Will do, chonko! You g.ooks are just so easy to piss off, it's really fun trolling g.ook chat.

I guess that's why trolls love G00K chat because it's so easy and fun to piss off Koreans b/c they are the only ones stupid and insecure enough to take trolling comments seriously. Unlike Japanese or Chinese who are mature enough and comfortable enough with themselves to know that it's stupid to get worked up over the comments from someone who is clearly just acting childish, Koreans actually go ballistic over insults and comments from someone who has the maturity of a 5 year old kid. LOL. It's so easy. In fact, pissing off Korean adult males is easier than pissing off a 3 year old baby or a dog. That's why trolls love Korean chat