· Asia has more people than the rest of the world combined. This population continues to grow and their income is also growing quickly as they become economic powers.
· China has recently passed the US as the world’s biggest economy.
· Demand comes from an increase in population and an increase in income – both are happening in Asia.
· We (farmers globally) will need to produce more food in the next 50 years than the total food that has been produced over the last 7,000 years.
· Global need (demand) will be 9 million more tons of beef over the next 10 years.
· China has 300 million people in their middle class (equals total US population) and this will double by 2022.
· Sheer numbers – the wealthiest 10% of China’s population represents more people than the total population of Japan
· The Middle Class is globally 2 billion people today and is expected to be 4.9 billion by 2030.
· The demand for beef is not only steady but growing. As people move into the middle class, they want to buy beef.
· China’s own beef production has kept up with demand in the past. This is no longer the case.
o Because of income growth, demand for beef is up 42% in China over the last 2 years.
o Chinese consumers want to see white fat beef, not yellow fat beef, so they want grain fed and not grass fed beef.
o China’s corn policy has their corn prices at $9.70/bushel to encourage their farmers to plant corn – this is forcing their own livestock producers to cut back production.
I thought this was pretty interesting stuff, hope you enjoy it! My livestock friends have been quietly and modestly happy because they quickly remember how it was before $8 corn. Cost of production is still an issue and we haven't seen people rush in to produce much more yet.