China-United States farm investment.

CHINA.

US INVESTMENT.

Henry George Roberts company KKR & Co, are going to invest US$100 million into the dairy industry in China. Investing in China’s largest producer and distributor of fresh milk, the American company are gambling on the recent melamine scandal being behind them.

The recent scandal in China over the use of melamine in milk, to raise the protein levels, has seen the values in the industry plummet.

Experts at Bloomberg, are calling this a smart move saying, "valuations in the industry were lowered considerably as a result of the tainting scandal".

Sophie Fan, of CSC Securities in Hong Kong, said "this is probably a good time for private The government of China placed 50,000 government officials (not 5,000), to monitor the industry, arresting the heads of several dairy processors, who could indeed be facing the death penalty.

The decks have been cleared in record time, with tainted product destroyed to the cost of companies such as Nestles and Fonterra from New Zealand, who claim they have already lost US$200 million and still counting.

The move by the Roberts group, appears to be one of high risk that could in fact yield extremely high rewards, according to Bloomberg. Perhaps the most significant announcement was made by US Agricultural Secretary Ed Schafer, when he told reporters while in Beijing, "I am very confident that the quality of food here in China, despite the scandals is of a high quality and safe".

The secretary went on to say to reporters, " Globalization has resulted in more inter-dependant food systems. It is encouraging that China is increasingly using systematic approaches, such as draft food safety law instead of end product testing". No one knows more about food scandals, that Ed Schafer, how the media can whip people into a frenzy baying for blood, as happened in South Korea this year, with much of the reasons for protest based on Miss-information in the media.