The Emerging Power Of China

Every market analyst agrees that the next few decades will belong to China. The world’s most populous country with more than 1.4 billion people and the current No. 2 economic force behind only the U.S. is projected to surpass America as the world’s largest economy by 2029.

Speaking at the annual Mid America CropLife Association meeting in Broomfield, CO, Todd Goll, vice president with ABN AMRO Clearing Chicago, pointed out to attendees just how strong an economic force China will become in the coming decades. “By 2020, there will be 500 million households in China, with 229 million of these falling into what can be called the middle class,” said Goll. “That will be up 49 million households since the start of the 21st century.”

Put into a more individualistic perspective, Chinese consumers born in 1960 are expected to spend just over $16,000 in their lifetime. But for Chinese consumers born in 2009, this figure skyrockets to more than $632,000.

As this Chinese middle class grows, said Goll, their appetite for more protein will increase. Right now, he adds, the per capita consumption of such products as beef, chicken and polk in China pale in comparison with those in neighboring entities such as Taiwan and Hong Kong. “But this will change,” he added.

In the meantime, China remains the world’s largest consumer of wheat. However, much of the country’s recent agricultural growth as occurred in the world’s largest cash crops, namely, corn and soybeans. “China is beginning to grow more of these crops itself, planting 84 million acres of corn in 2012, at the expense of wheat,” said Goll. “But the country still has to import much of what it needs from countries in South America and the U.S.”

In the near term, this will mean quite a bit of crop export business for countries such as Brazil, Argentina and America, he says. In fact, in 2013, a good portion of the U.S.’ projected soybean harvest of more than 75 million acres will end up in Chinese hands.

“Based upon the best estimates from the USDA, approximately 30% of the U.S. soybean crop this year will go to feed demand in China,” he said.

Leave a Reply

Eric Sfiligoj Stories

NFMS 17 Hagie Sprayer
Eric SfiligojThe Read From Louisville: Uncertain
February 22, 2017
By the time this column appears across the country, the annual Commodity Classic will be in full swing. This means Read More
Cedar Country Cooperative
Eric SfiligojConsolidation In Agriculture: More Middle Movement
February 7, 2017
If you’ve regularly followed my column, you know I’m something of a movie junkie. Like many, one of my favorite Read More
Engenia soybeans
Eric SfiligojJust ‘Okay’ Isn’t Good Enough With Dicamba Cropping Systems
February 6, 2017
Thus far, crop protection product experts have a very simple message for custom applicators who plan to use the new Read More
Eric SfiligojNo Alternative Facts: Dicamba Cropping System Applicators Must Be Careful
January 23, 2017
During President Donald Trump’s inauguration, much fuss was made over the use of the term “alternative facts” vs. some of Read More
Trending Articles
Farmer and aptop
Matt Hopkins10 Warning Signs Your Website Is Grossly Outdated
February 8, 2017
Your Website is often a visitor’s first impression of your ag retail business. A positive first impression can set the Read More
AgriSync
Matt Hopkins17 Agriculture Apps That Will Help You Farm Smarter In 2017
December 9, 2016
Ag professionals are working smarter, not harder, than ever before. Smart farming technologies have enabled them to reduce costs, maximize Read More
R4023 Sprayer, John Deere
CropLife 100Ag Retail Equipment Report: The Green Party Continues
December 7, 2016
In the annual race for sales in the ag retail equipment marketplace, the color schemes for participants are a little Read More
Mike Stern
Precision AgClimate Corp. CEO Talks Retailer Support For Digital Ag
December 1, 2016
CropLife Magazine’s sister publication, AgriBusiness Global, recently sat down with Mike Stern, CEO of The Climate Corp., following the Monsanto subsidiary’s Read More
Precision AgTrimble Debuts End-to-End FMIS Platform
November 28, 2016
October’s inaugural PrecisionAg Vision Conference left this author with many thoughts and things to ponder in the coming months. Probably Read More
CHS Primeland
CropLife 100The 2016 CropLife 100 Report: Reviewing The Many Bulls And Bears Impacting This Year’s Marketplace
November 28, 2016
For virtually all of 2016, the nation was wholly focused on the big Presidential election. Some folks aligned themselves with Read More
Latest News
Soybean Plant closeup
HerbicidesRegional Listening Sessions Give Farmers A Voice In The…
February 27, 2017
Both scientists and regulators have had a lot to say about the growing problem of herbicide resistance and how weed Read More
Greystone Construction built the tension membrane fertilizer storage building (left) and steel seed treater building (right)
CropLife 100Pinnacle Announces Successful Exchange Offer Results An…
February 27, 2017
Pinnacle Agriculture Holdings, LLC has announced today the early tender results of its previously announced offer to exchange (the “Exchange Read More
IEI Barge Fertilizer Potash Port Terminal
EquipmentLegacy Building Solutions Receives Design-Build Merit A…
February 27, 2017
When IEI Barge Services needed a building capable of storing and loading fertilizer, they turned to Legacy Building Solutions to Read More
ManagementSouth Africa Update and the New New Leader G5
February 24, 2017
Editors Eric Sfiligoj and Dan Jacobs discuss the recent visit to South Africa by sister magazine AgriBusiness Global and the Read More
Fall Creek Watershed
StewardshipUpdate: Nutrient Stewardship In Indiana Requires Cool, …
February 24, 2017
Update: The application deadline for NCRS funding has been extended to March 17, 2017. Green leaves sparkle in the sunlight. Trees Read More
Greenleaf Technologies TADF03-D Dual Fan Nozzle
NozzlesSix Greenleaf Nozzles Approved For XtendiMax With Vapor…
February 22, 2017
Greenleaf Technologies has announced that six of its TurboDrop D Series nozzles have been approved for use with Monsanto’s XtendiMax Read More
Winter Wheat
Industry NewsTiger-Sul Hires Manitoba And Eastern Canada Account Man…
February 22, 2017
Tiger-Sul, a global leader in sulphur fertilizers and crop performance products, has announced that sales veteran Trevor Loewen has joined Read More
NFMS 17 Hagie Sprayer
Eric SfiligojThe Read From Louisville: Uncertain
February 22, 2017
By the time this column appears across the country, the annual Commodity Classic will be in full swing. This means Read More
SprayersApache 1000 Series Sprayer Earns 2017 EquipmentWatch Hi…
February 21, 2017
ET Works has been named a winner in the 2017 EquipmentWatch Highest Retained Value Awards program, the industry’s only award Read More
Measuring Bulk Tanks
StewardshipMeister Media Among 2017 Award Winners Presented By The…
February 21, 2017
The Pesticide Stewardship Alliance (TPSA) held its annual conference in San Diego, CA, earlier this month where three awards were Read More
John Reifsteck
CropLife 100GROWMARK’s Reifsteck Earns NCFC Director Of The Y…
February 21, 2017
GROWMARK Chairman of the Board and President John Reifsteck has earned the prestigious Director of the Year Award from the Read More
Roy Blunt
LegislationARA Recognizes Blunt, Heitkamp For Legislative Efforts …
February 17, 2017
Agricultural industry continues to face federal regulatory challenges. Thankfully, agriculture’s allies in the U.S. Senate stepped forward. The Agricultural Retailers Read More
LegislationThe Fertilizer Institute Commends Senate On Confirmatio…
February 17, 2017
The Fertilizer Institute (TFI) President Chris Jahn issued the following statement on the Senate confirmation of Oklahoma Attorney General Scott Read More
Trump, Senate, Cabinet
LegislationBREAKING: Trump EPA Nominee Scott Pruitt Confirmed by S…
February 17, 2017
Scott Pruitt, who as Oklahoma’s attorney general spent years suing the Environmental Protection Agency over its efforts to regulate various Read More
ManagementFebruary Road Trip Edition
February 17, 2017
Editors Paul Schrimpf and Eric Sfiligoj discuss their recent visits to Indiana and Kentucky. Read More
Heritage Cooperative Finished Building Aerial
ManagementHeritage Cooperative, Agland Co-op Approve Merger
February 17, 2017
Agland Co-op and Heritage Cooperative stockholders have both approved the merger agreement between Agland Co-op and Heritage Cooperative. Now begins Read More
LegislationARA Fly-In: Ag Retail Descends on Capitol Hill, Lawmake…
February 15, 2017
More than 100 agricultural retailers, distributors and suppliers headed to Capitol Hill Tuesday morning for the Agribusiness Congressional Fly-in, according to a Read More
Untreated soybean seed Heartland Coop
Seed/BiotechMarrone Bio Innovations, Groundwork BioAg Bio-stacked M…
February 13, 2017
Marrone Bio Innovations, Inc. and Groundwork BioAg, Ltd have announced successful seed treatment field trials of the world’s first all-biological Read More