The Chinese ag space is an interesting long-term play. There are a few very clear demand drivers: (1) the urbanization of the growing population; (2) a burgeoning industrial middle class population; and (3) changing dietary patterns that accompany an increase in disposable income.

The government will help Chinese companies in this space. There are strong barriers provided by the Chinese government (legislation, tariffs, quotas, direct and indirect subsidies), which will help keep Chinese ag domestic. Further, the Land Reform Act - a step towards land ownership in China - will encourage the implementation of large scale ag production.

Here are some companies I am following in this space:

1. China Green Agriculture (CGA)

2. China Marine Food Group (CMFO)

3. China Nutrifruit Group (CNGL)

4. Origin Agritech Limited (SEED)

5. Skystar Bio-Pharmaceutical Company (SKBI)