china’s food security challenge and the implications for business

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China’s food security challenge and the implications for business

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China’s food security challenge and the implications for business. China’s Urbanization. China's urban population will expand from 572 million in 2005 to 926 million in 2025 and hit the one billion mark by 2030; - PowerPoint PPT Presentation

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Page 1: China’s food security challenge and the implications for business

China’s food security challenge and the implications for business

Page 2: China’s food security challenge and the implications for business

China's urban population will expand from 572 million in 2005 to 926 million in 2025 and hit the one billion mark by 2030;

More than 350 million people will add to its urban population by 2025, more than 240 million will be migrants in China;

Over the next two decades, migration will play a much larger role, accounting for about 70 percent of the new urban residents;

China’s Urbanization

Page 3: China’s food security challenge and the implications for business

Rapid Urbanization

More New Megacities

City Renewal

Enhanced Intercity Connection

Guangzhou Baiyun new town China High Speed Rail Map

Page 4: China’s food security challenge and the implications for business

Growing Middle Class

Year 2010 Year 2020

Disposable income of urban residents

Disposable income of urban residents

Population Annual disposable income of urban residents Population

( Million) ( US$: 000) ( Million)1 Upper class >30 12

13 Lower upper class 15~30 53

34 Middle class 9~15 69

61 Emerging Middle Class 6~9 66

57 Low income class 4~6 39

36 Poorest class <4 23

202 262

Total 109M

Total200M

Page 5: China’s food security challenge and the implications for business

• The current arable land per capita in China is about 0.08 hectares, which is only about 40 percent of the global average, one-seventh the United States, and a quarter of the Brazil level.

• The level of arable land per capita in 2008 is about half of that in 1961

Availability of Arable Land

Arable Land Comparison (hectares per person)

Source: The World Bank

Country Name 1961 1970 1980 1990 2000 2008

2008 vs. 1961

World 0.34 0.30 0.25 0.22 0.23 0.21 61%

European Union 0.31 0.28 0.25 0.24 0.24 0.22 69%

United States 0.98 0.92 0.83 0.74 0.62 0.60 61%

Brazil 0.30 0.36 0.37 0.34 0.33 0.32 108%

India 0.35 0.29 0.24 0.19 0.16 0.14 40%

China 0.16 0.12 0.10 0.11 0.10 0.08 52%

Page 6: China’s food security challenge and the implications for business

China Urbani zation

Less rural workforce Arable land shrinkage Environment pollution

Water shortage Soil erosion Climate change

Combined withSelf-sufficient of food is not sustainable

China Urbanizatio

n

China Urbanizatio

n

Wealth creation Dietary upgrade

Wealth creation Dietary upgrade

Increase demand on staple and non-

staple food

Increase demand on staple and non-

staple food

Supply &

Demand Gap

Import/FEX

China’s Food Supply & Demand

Page 7: China’s food security challenge and the implications for business

Thank You!