2. CGG plans to import 10 million tonnes of soybean from its oversea production bases, which willnot only meet the demand in Chongqing City, but also can be marketed to surrounding areas.Besides direct import of soybean from Brazil, CGG also plans to build some soybean processingfactories in the country, which is welcomed by the Brazil government.Besides CGG, some other companies, such as Zhejiang Fudi Agriculture Group and JulongGroup have also invested to build crop planting bases in oversea countries.Other big state-owned companies are also planning to develop agricultural business in overseacountries, including Chinatex Corp Ltd., Chinas largest cotton trader, and COFCO, Chinaslargest grains and edible oil trader. COFCO reveals that it plans to invest USD10 billion inoversea mergers and acquisitions in agricultural industry in the coming years.It is very easy to understand companies objectives to invest in oversea countries, under thebackground of strong demand and limited farmland. China is the biggest soybean importer in theworld, but domestic soybean importers have to import soybean from large international graindealers. Domestic companies hope the purchase cost can be reduced with the building ofoversea production bases. However, some insiders think it will be hard to achieve the objective.First, the cost in building production bases in oversea countries is very huge, especially bypurchasing farmland. Besides, the purchase of farmland has to face restriction by overseacountries. Last but not the least, they have to face fierce competition from large international graindealers who are masters for both actuals and futures in agricultural products.Source: AgriChina Investor 1203http://www.cnchemicals.com/Newsletter/NewsletterDetail_192.htmlContent of AgriChina Investor 1203:Government to support leading agricultural enterprisesDraft of Grain Law raised disputesCentral governments agricultural expenditure to hit USD194 billion in 2012China may relax restriction on rapeseed import from CanadaCOFCO to expand its dorking capacity in West ChinaSteel super giant WISCO to build pig farmShuanghui accelerating its restructuring