Saudi Arabia and Bunge buy 50.1% Stake in former Canadian Wheat Board

This is quite big and exactly the kind of trade oriented investment in the value chains of developed agro markets that I have anticipated in the conclusion of Oil for Food.

Saudi government owned company SALIC teams up with international grain trader giant Bunge to buy a 50.1% stake in the former Canadian Wheat Board, which the Canadian government has now privatized. The other 49.9% will be owned by Canadian farmers.

SALIC was founded in 2012 in the wake of the King Abdullah Initiative for Agricultural Investments Abroad (KAISAIA).

I would expect more of this kind of investment rather than the widely publicized land investments in food insecure developing countries that have made media headlines, but have often not been implemented.

Martin Keulertz and I are dealing with the aspect of food trading companies and value chain investments in a forthcoming article in the fall issue of International Development Policy.

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