World Grain - June 2018 - 84
insatiable appetite for grain
One forecast sees two-thirds of global middle class residing in Asia by 2030
by Michael King
at Global Grain
Asia 2018 in
by Michael King.
he staging of Global Grain Asia 2018 at
Singapore's Novotel Clarke Quay hotel March
12-14 was dominated by the growing prospect
of a trade war between China and the United States as
President Trump's promise to "Put America First" took
solid policy form. Yet apart from examining what "Soy
Wars" between the United States and China might look
like for global agricultural markets, almost 300 conference delegates also heard just how important Asia
is to global grain demand, and how the mushrooming
of the region's middle classes will further push global
procurement power eastward.
It was underlined by a number of speakers that as
families attain middle class status they generally consume more grain products such as noodles and bread,
and meat consumption tends to surge, driving feed
demand. Asia's importance to the global grains market was laid bare by OECD forecasts, which predict
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daily expenditures of $10 to $100 per person in 2005
purchasing power parity (PPP) terms, will reach 4.9
billion people by 2030, up from 1.8 billion in 2009.
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Asia, up from just 28% in 2009.
"It's pretty simple, the future of grains markets is
Asia," commented one delegate.
China, of course, is already the dominant buyer in
many grains markets, a point no doubt bemoaned by
U.S. farmers as they contemplate what a trade war with
China means for them. The OECD expects China's
middle class to exceed 1 billion people in 2030, up
from 157 million in 2009, so demand for grains is unlikely to slow in the coming years, a point driven home
on day one of Global Grains Asia 2018 - the China
Gavin Maguire, a commodities and energy analyst
June 2018 / World Grain / www.World-Grain.com