Chinese Agricultural Foreign Direct Investment in Dairy: Could Germany Become a Chinese Cash Cow?

Douglas Michael Robinson, Sebastian Lakner and Verena Otter

No 292303, 59th Annual Conference, Braunschweig, Germany, September 25-27, 2019 from German Association of Agricultural Economists (GEWISOLA)

Abstract: With a view to food security and sovereignty objectives, China is following an extensive strategy in outward foreign direct investments (OFDI) into the agribusiness sectors of industrialized countries in the recent decade. In light of this strategy, remarkable investments have been made in New Zealand’s dairy sector, currently provoking the scepticism of this nation’s policy makers and practitioners. The corresponding tentative support of such investments in New Zealand may bring Chinese investors into the situation to search for alternative target countries. Even though Germany is the largest dairy producer in the EU and a significant exporter of dairy products to China, it has yet to come into focus for these investments. However, there is little existing research examining Chinese OFDI in dairy or other agribusiness sectors in developed economies. To close this gap, this study aims to gauge the attractiveness of the German dairy industry for Chinese investment by the use of a case-specifically adapted PESTEL framework, considering factors which may act as either incentives or dampers. The assessment of these factors is conducted on the basis of an extensive systematic literature review and a descriptive analysis of secondary data. By focusing on Chinese entrance into the agriculture sector in a developed economy, this study offers insights for managers and policy makers, which may be applicable to dairy industries in other economies and other agricultural sectors in Germany and abroad.

Keywords: Agribusiness; Agricultural Finance (search for similar items in EconPapers)
Date: 2019-08-26
New Economics Papers: this item is included in nep-agr and nep-int
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/292303/files/P ... t%20in%20Dairy_c.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:gewi19:292303

DOI: 10.22004/ag.econ.292303

Access Statistics for this paper

More papers in 59th Annual Conference, Braunschweig, Germany, September 25-27, 2019 from German Association of Agricultural Economists (GEWISOLA) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().