Higher Protein Consumption

Per capita income has grown by more than 8 to 10 percent per year over the last decade and is projected to continue to grow by 8 percent annually over the next decade. This robust growth coupled with an increasing population will result in China’s demand for food to rapidly increase. Further, as more and more of Chinese consumer’s incomes grow, their demand for higher quality food will increase.

Studies have shown that the incremental protein consumption is the largest when income levels are between US$2,000 and US$5,000 per capita. This is not just extra food, but more specifically, an increase in meat and other proteins. While the absolute income per capita remains low, the growth rate of income levels is fast growing in China. All of these factors will result in a rapidly growing demand for high quality food over the next decade.

Meat, especially beef, is the most resource-costly form of food. In terms of usable protein yields per acre of land, wheat can feed about 7 times more people than beef can. It also takes about 100 times more gallons of water to produce a pound of beef than a pound of wheat.

Income & Extra Food Intake (*incremental protein) Source:CBA,Commonwealth Research

Land Use Efficiency - Usable protein yield per acre from different foods Source: USDA; FAO/WHO/UNICEF, Protein Advisory Group (2004)