Q+A | Lai Guanglin

President Xi Jinping's visit to New Zealand that began on Nov 19 is expected to boost bilateral ties and further generate trade. Lai Guanglin, chairman of Agria Corp (based in Beijing) and PGG Wrightson Ltd (based in New Zealand), spoke with China Daily's Hao Nan about the company's efforts in promoting agricultural development and cooperation with New Zealand.

You've worked in many industries but you seem to be most interested in agriculture. What are the reasons for your enthusiasm in agriculture?

Agriculture enables us to be involved in the most fundamental aspect of human life. Safe and nutritious food is one of the basic necessities required for life.

Agria and PGG Wrightson can make a difference in the quality of life and support the agrarian economy in New Zealand and other countries in the region. I cannot imagine a better industry than agriculture in which to make a difference to the lives of millions in a positive way.

Your company started investing in PGG Wrightson in 2009 and now is its largest shareholder. Why did you choose PGG Wrightson and how have you helped its development?

We jumped at the opportunity to invest in PGG Wrightson in 2009. We were already a growing player in the seed industry in China, but we also had global ambitions. PGG Wrightson represented the ideal partner to expand our presence beyond China. PGG Wrightson has a very long history of successful operations and is highly respected in its key markets.

But PGG Wrightson ran into tough times back then, something that can happen to the best when you operate for decades. We believed in PGG Wrightson, its people, brand and operations, and knew that with Agria's financial support it could get back on its feet, which is what has happened since our investment.

PGG Wrightson now anchors a thriving Agria Corp that offers leading agricultural products and rural services in New Zealand, Australia, China and South America. Our partnership has thrust New Zealand into a leading position in global agriculture.

China is a large agriculturally driven country, while New Zealand is one of the world's major agricultural players. What does China need most to boost its agriculture and what can New Zealand offer?

China has the "raw materials" to ultimately develop into one of the leading agricultural economies in the world: a very large market, plenty of arable land and an educated and hard-working populace.

What China does not have is the technical expertise, in terms of machinery and breeding technologies. As an agricultural leader for decades, New Zealand has developed one of the most productive sectors in the world. New Zealand's agricultural industry has a well-trained workforce with significant expertise and deep technical knowledge. As a combined company, we believe Agria can import some of PGG Wrightson and New Zealand's expertise into China, creating better practices and products in China and significant profit opportunities for New Zealand.

China will also be a very large market for New Zealand exports, such as sheep, cattle and derivative products.

Food quality, especially for milk and infant formula, is a major concern in China. What can PGG Wrightson do to help improve the quality of milk in China?

Agria and its leadership understand the concerns regarding the quality of milk and infant formula in China. After all, we live there and read about it every day. China has been a growing export market for New Zealand dairy goods, but there is no way the nation can fully satisfy dairy demand in China.

China needs to develop a more sophisticated and modern food chain, and this is where knowledge can be transferred. The milk coming out of cows in New Zealand is no different from that in China it is everything that happens after milking. New Zealand's systems, machinery and practices can be transplanted to China and local processing can be brought to international standards ... to move China toward a much safer dairy food chain.

Have you set a goal for PGG Wrightson in the next three years?

We have set a number of important objectives for PGG Wrightson, but keep in mind that those objectives are framed within their role as a part of the Agria corporate entity. In New Zealand and Australia, PGG Wrightson is still PGG Wrightson, meaning the brand is prominent and important. But on a global scale, PGG Wrightson is an integral operating unit of Agria.

We intend for PGG Wrightson to continue its recovery within its home markets but its ultimate role is far larger. Its products and services form the base of what Agria intends to roll out worldwide. We will continue to penetrate China and South America, and eventually will expand operations into North America and Europe. We look forward to seeing PGG Wrightson as a major world player as part of the Agria group.

President Xi Jinping's visit to New Zealand is boosting the enthusiasm of Chinese-owned companies in the country. What are your prospects of agricultural cooperation between the two countries?

Agria and all its employees, including those within PGG Wrightson in New Zealand, fully support President Xi's policy initiatives. Over time we are certain that economic cooperation will grow between the two countries on all levels, but especially in agriculture.

China has a lot to learn and develop in its own agricultural sector, and New Zealand is both a model and a source of great products and services to be imported.

Similarly, New Zealand can benefit from China's own expertise, capital and market. We see a classic win-win scenario, with both countries and their peoples living better, enjoyable lives as both benefit from advances in the food industry due to cooperation between our institutions, companies and people.

The Kimihia Research Farm. Photos Provided to China Daily

(China Daily 11/21/2014 page6)