Goldman Sachs, a United States-based private equity investment firm, recently acquired full control of more than 10 poultry farms on the mainland for as much as US$300 million, establishing a presence in the mainland livestock industry, according to a mainland media report yesterday.
In the face of the global food price crisis, the investment move sparked concerns, especially after trade talks under the World Trade Organisation collapsed last week as the issue of agriculture once again became the sticking point.
Investor Jim Rogers, who is well known for profiting in commodities, said the most valuable investments on the mainland are agricultural products.
The China Business yesterday reported that Goldman Sachs had recently acquired more than 10 poultry farms in Hunan and Fujian provinces.
Quoting an unidentified source, the newspaper said Goldman Sachs had bought the farms outright but was not involved in daily operations, which are outsourced to third parties. The banker only maintained control of the livestock price.
A Goldman Sachs spokesman could not be reached for comment yesterday.
The news came as the People's Bank of China raised commercial banks' loan allocations by 5 per cent to boost capital flows to lower-rung workers and farmers of the world's fourth-biggest economy.