Tide of change

Driven by sharply increasing demands for food products around the world, China's agriculture has been undergoing transformation that has attracted attention in the M&A space and capital markets. The industry has seen large numbers of new entrants who have included financial investors without prior connections or experience with the industry. Capital has become more plentiful in a sector where new technology, know-how and management are much in demand in the perpetual quest for higher productivity at a lower cost. A number of Chinese agricultural giants have made acquisitions both locally and overseas to seek further economies of scale and additional land resources.