Wake up and smell the Coffee – whilst you can

 The rise of the developing world is really just a return to business as usual.

 

After all, until the 18th Century, India and China were the richest countries on the planet. For 18 of the past 20 centuries China had the largest economy in the world until the 19^thcentury and the industrial revolution.

Chinese companies are increasingly active and will continue to make international acquisitions. Bright Food China's second-largest food manufacturer are currently in talks with Israel's largest food producer Tnuva Food Industries Ltd over a potential acquisition, which is valued at $1.29 billion and expected to be the largest purchase of an Israeli firm made by a Chinese company. Bright Food spent about 7 billion yuan ($1.14 billion) in the year 2012 in purchasing 60 percent of the shares in Weetabix, a British breakfast cereal producer, after carrying out eight other overseas merger and acquisition projects since 2009.

Meanwhile in the US, Smithfield Foods Inc. , the world’s largest hog and pork producer, said U.S. regulators will allow the company to be bought by China’s Shuanghui International Holdings Ltd.for US$ 4.72 billion a deal which represents the biggest Chinese purchase of a U.S. firm.

The Committee on Foreign Investment in the U.S., or CFIUS, approved the transaction and it will be voted on by Smithfield shareholders at the company’s annual meeting Sept. 24.  

Meantime as evidenced by the recent purchases of Corn from the US, China will continue to be a major buyer in the international agri markets in response to demand from its burgeoning middle classes. Chinese China's state stockpiler Sinograin recently bought more than 1 million tonnes of U.S. new-crop corn,in addition to sizeable volumes of Wheat and Sorghum.

 

With a population in excess of 1.3 billion (approximately 20% of the world’s population) imagine the implication for Western consumers should an early morning cup of coffee become the beverage of choice!