Rabobank: China's meat consumption will maintain high growth

Yesterday, the Dutch cooperative bank said in an interview with reporters that China's per capita meat consumption will be closer to the United States after 20 years, with an average annual consumption growth rate of 20%, which will increase China's feed supply and demand pressure. In this context, the Chinese feed industry can obtain feed ingredients and advanced technologies through joint ventures and cooperation with overseas companies.

Jeroen Leffelaar, managing director of Corporate Banking at Rabobank, and director of the Global Meat and Feed Division, said that “although China has become the world’s second-largest feed producer, China’s future meat consumption demand and feed supply gap will increase further. According to the Rabobank, the global demand for meat will grow further in the future, with traditional production giants such as the United States and Brazil continuing to maintain steady growth and exporting significantly; China will continue to dominate the world with growth in meat consumption, and is expected to grow within the next 20 years. The average growth rate will reach 20%.

According to the Dutch cooperative bank, China's per capita annual meat consumption will be close to the United States in 20 years, ie an increase of 70%. There are two reasons for this. First, with the process of urbanization in China, the meat consumption habits of rural residents will be closer to urban residents. Second, as China's per capita income level increases, China's per capita meat consumption will approach that of developed countries, and at the same time it will lead to the rapid development and transformation of China's feed industry.

Jiang Chuan, an analyst at the Rabobank Shanghai Branch of the Food and Agricultural Research Department, said that “China's future purchases of feed will increase further. Therefore, China needs to obtain unobstructed raw material procurement channels and raise the level of culture, such as through production of more standardization and specialization. Feed to ease pressure on imports.”

It is understood that many Chinese companies have adopted strategies. New hopes to build feed production bases in Cambodia, Bangladesh, the Philippines, and other countries, using local low-cost feed raw material resources to improve profitability. New Hope stated that its feed profit margin will be 10 times that of the domestic feed industry. COFCO and the multinational agricultural giant ADM have formed a number of joint ventures, and ADM provides a lot of soybeans as feed.