PGW expands China seed ventures
PGG Wrightson and its majority Chinese shareholder, Agria, have announced two further ventures to develop seeds-based products in China.
Earlier this month, PGG Wrightson AgriTech division group general manager, John McKenzie announced agreements for a showcase for seed-based forage grasses at a Chinese agricultural park in a central area of China regarded as "a cradle of agriculture".
The Yangling demonstration zone was located in Shannxi Province in central China, only about an hour from Xi'an, one of the oldest cities in China containing the high-profile tourist attraction, the Terracotta Warriors.
Today, PGG Wrightson said agritech business PGG Wrightson Seeds had entered in to a further two memoranda of understanding to develop and showcase agriculture in China.
In early afternoon trade PGG Wrightson shares were 1 cent higher at 39c, their highest level since April.
The rural services company said the two agreements were with Chinese agriculture partners in the Guangdong and Shandong provinces.
The first agreement aimed to develop a high-profile agriculture showcase to be called "the China Guangdong-New Zealand Agricultural Showcase", with the Crop Research Institute of the Guangdong Academy of Agricultural Sciences and Guangdong Golden Crops Agricultural Science & Technology Co.
The Guangdong province is in the southeast of China, or just north of Hong Kong, and has a humid sub-tropical climate.
Under the memorandum the parties have agreed to develop and showcase agricultural products and technologies in Guangdong and co-operate on the training of agricultural specialists, particularly in the areas of corn, forage and vegetable seeds.
There would also be increased production of vegetable seed in New Zealand for export to Guangdong.
The second agreement, with Shandong Province Seeds Group, is focused on research, production and promotion of plant species including corn, forage and vegetable seeds.
Shandong is a coastal province in eastern China, about half-way between Beijing and Shanghai.
With a temperate climate with monsoonal summer rains and is one of the largest cereal producing regions in China.
- © Fairfax NZ News
Do you agree with Fonterra's decision to hold its forecasted payout at $8.30 a kg of milksolids and slash its predicted dividend from 32c a share to 10c?Related story: 'Abnormal' situation hits Fonterra forecasts