There will be more agricultural investment when all kinds of capital compete for China's agricultural industry.

Agricultural planting and animal husbandry are the key areas of M & An in China's agriculture. Zhangpu, Fujian Province, to expand the new path of modern agricultural industry, the picture shows the staff of Fujian Yonggeng Agricultural Development Co., Ltd. changing water to wash the roots of hydroponic flowers. Issued by Xinhua News Agency

As industrial upgrading gathers momentum, China's agriculture is attracting attention from mergers and acquisitions and capital markets. From 2007 to 2013, there have been 149 strategic M & A transactions in China's agricultural sector, of which 114 exchanges have disclosed a total of US $13.706 billion.

The capital market pays more attention to China's agriculture.

Deloitte China published a report on the development trend of China's agriculture yesterday, "Tide surging-- Modern Agriculture in the layout of the whole Industry chain" said that driven by the huge demand transformation pressure from the global consumer market of agricultural products, the field of mergers and acquisitions and capital markets at home and abroad have paid more attention to China's agriculture, including financial investors who have not dabbled in agriculture before, new entrants have brought sufficient capital to the industry. It has laid a solid financial foundation for China's agriculture to acquire emerging technology, industrial knowledge and management experience in the pursuit of low cost and high output. Some agricultural giants seek economies of scale and more land resources through domestic and cross-border mergers and acquisitions.

The study found that agricultural cultivation and animal husbandry are the key areas of M & An in China's agriculture. Between 2007 and 2013, the volume of M & A transactions related to agricultural cultivation was absolutely dominant in the entry, domestic and outbound trading markets. The proportion of transaction volume of the three is 82%, 61% and 60% respectively, and the proportion of trading volume of animal husbandry in the three markets is 18%, 29% and 40%, respectively.

Globally, Asia has always been the region with the highest concentration of overseas agricultural investment and cooperation among Chinese agricultural enterprises, followed by the Americas, Africa, Europe and Australia.

There will be more agricultural investment projects.

There are mainly three types of active investors in China's agriculture-related capital market: government-led investment platforms (or policy industrial funds), agricultural enterprises as strategic buyers, and pe and vc institutions as financial investors. More and more Chinese agricultural enterprises are vertically integrated along the supply chain, and the object of integration is no longer limited to the domestic market.

Mr. long Yongxiong, head partner of Deloitte China consumer industry, believes that in addition to providing financing, investment platforms and funds with government background are positioned to lead technological development and cultivate the high output and competitiveness of large enterprises. On the other hand, the M & An activities of industrial investors in agriculture tend to expand horizontally and cover the vertical integration of the upstream and downstream of the industrial chain. this investment strategy is mainly for strong financial strength and strong anti-risk ability. and experienced enterprises in the industry are more operable and realistic. Pe/vc and other investment institutions are optimistic about the prospects of China's agricultural development, and actively distribute the agricultural sector in order to achieve diversified investment and seize the opportunity of industrial take-off.

It is generally believed that the main areas of China's agricultural investment in the future will include: the expansion of the whole industry chain and the integration of sub-industries that need to be realized through capital; biology and information technology with broad application prospects and low risk; agricultural logistics warehousing that plays an important role in solving the imbalance in the distribution of resources in agricultural areas; agricultural e-commerce, which has become a new hot spot of investment, and characteristic agriculture with high added value.

The Deloitte report points out that economies of scale and synergies in the process of agricultural modernization will push China's agriculture up the value chain, bringing rich returns for agricultural investors in terms of capacity and profitability. Sufficient capital will provide strong support for the rapid transformation of China's agriculture, and it also indicates that there will be more and larger agricultural investment projects. In the medium to long term, the transformation and upgrading of the agricultural sector will enable Chinese and foreign consumers to obtain higher-quality safe food at more reasonable prices.