BEIJING - A report issued by China and Australia on Thursday predicts a bright future for the development of bilateral cooperation regarding agricultural investment and technology.

Research for the report was carried out by the Ministry of Commerce (MOC) of China, the Ministry of Agriculture of China, the Department of Foreign Affairs and Trade of Australia and the Department of Agriculture, Fisheries and Forestry of Australia in 2011, according to the MOC.

The report stated that both countries are facing the same challenges in terms of maintaining and increasing their grain output.

Although mutual investment in the two countries' agricultural sectors is small, their investment has increased and become more diverse, the report said.

The two countries will focus on improving output efficiency through sustainable development and the expansion of output capacity, the report said.

The report cited soil and land resources in north Australia, the commercialization of new new agricultural technology and food processing and logistics services as potential areas for cooperation.