KSG Agro (Luxemburg) with assets in Ukraine has signed an agreement on the supply of its products to China, the company's press service has told Interfax-Ukraine.
“The conditions are the following: they invest in irrigation and have the top-priority right to buy our products,” the press service said.
According to the company, leasing of farmland or the sale of farmland was not discussed during the negotiations.
Earlier media reports said, referring to the South China Morning Post (Hong Kong), that China’s Xinjiang Production and Construction Corps has signed a leasing agreement with KSG Agro, under which China will lease 100,000 hectares of land belonged to the company. According to the publication, China in 2009 used around two million hectares of land to plant agricultural products aboard and has plans to boost the land to three million hectares.
KSG Аgro is a vertically integrated agricultural group, working in almost all segments of the agricultural market, including the production, storage, processing, and sale of agricultural products. Its land bank is 61,000 hectares.
