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

Young Corn Closeup
Eric SfiligojThe Read On 2017 For Agricultural Fortunes Is Anybody’s Guess
December 5, 2016
As I (and others) have written in recent months, the nation has just experienced one of the most offbeat election Read More
ARA
Eric SfiligojTaking The Industry’s Pulse At ARA
November 28, 2016
When most of you read this particular column, many of the industry’s key folks will probably be spending at least Read More
Bayer Monsanto
Eric SfiligojCrop Protection Mergers: Will They Or Won’t They?
November 14, 2016
Fall is in full swing and many sports fans probably spend the better parts of their time looking at the Read More
Eric Sfiligoj2017 Agricultural Outlook Not As Dire?
November 7, 2016
As 2016 heads towards its conclusion, there are many of us in the agricultural marketplace already looking forward to what Read More
Trending Articles
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
Monsanto sign
Crop InputsMissouri Governor Meets With Bayer CEO To Discuss Monsanto Merger
November 21, 2016
Missouri Gov. Jay Nixon visited Bayer AG global headquarters in Leverkusen, Germany, on November 18 to discuss the proposed Bayer-Monsanto Read More
STS16 2017
SprayersHagie Manufacturing Releases 2017 STS16 Sprayer To Market
November 16, 2016
Hagie Manufacturing LLC’s largest full season applicator is now available with enhancements for the 2017 model year. Hagie is officially Read More
Latest News
ManagementARA 2016 Report and Crop Mix for 2017
December 9, 2016
Editors Paul Schrimpf and Eric Sfiligoj talk about the recent Agricultural Retailers Association meeting and the projected acreage mix for Read More
AgriSync
Matt Hopkins17 Agriculture Apps That Will Help You Farm Smarter In …
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
Ryan Bartlett
Crop InputsCompass Minerals Appoints Vice President, Innovation An…
December 8, 2016
Ryan Bartlett, Ph.D., has joined Compass Minerals as vice president, innovation and product development. Dr. Bartlett will be responsible for Read More
HerbicidesHerbicides 2017: New Cropping Systems Set For Debut
December 7, 2016
Herbicide-resistant weed are inching ever-closer to a potentially frightening saturation point here in the U.S. Heading into 2016, USDA planting Read More
CropLife 100Wilbur-Ellis Acquires Michigan Ag Retailer
December 7, 2016
Wilbur-Ellis’ Agribusiness, a recognized leader in precision agriculture technology and the distribution and marketing of plant protection, seed and nutritional Read More
Fertilizer storage The Andersons
CropLife 1002016 Fertilizer Report: Another Really Rough Year For A…
December 7, 2016
In many ways, the fertilizer category cannot seem to catch a break. During the early part of the 2010s decade, 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
Winter wheat
HerbicidesTalinor Herbicide Approved For Wheat And Barley
December 7, 2016
Talinor herbicide from Syngenta has received federal registration from the U.S. EPA, giving wheat and barley growers a new option Read More
Forage Sorghum
UncategorizedMilestone Achievement Continues For Dow AgroSciences, A…
December 7, 2016
New and innovative forage products are on the horizon driven by continued collaboration between Dow AgroSciences, a wholly owned subsidiary Read More
Palmer pigweed seedhead in cotton
HerbicidesNew WSSA Factsheet Explores Weed Seeds And Their Longev…
December 7, 2016
Did you know some weed seeds can lie dormant in the soil for more than a century and then sprout Read More
Crop InputsARA 2016: 5 Developments Worth Monitoring Into 2017
December 6, 2016
You can pretty much set your watch to it (do people even still wear watches? I know I do…but I’m Read More
Tim McCardle, ARA Chairman
CropLife 100BRANDT COO Named ARA Chairman
December 5, 2016
BRANDT EVP and Chief Operating Officer Tim McArdle has been named chairman of the Agricultural Retailers Association (ARA) during a Read More
Crop InputsWilbur-Ellis Receives ResponsibleAg Certification At Mo…
December 5, 2016
Wilbur-Ellis Co., a recognized leader in precision agriculture technology and the distribution of crop protection products, announces the ResponsibleAg certification Read More
Young Corn Closeup
Eric SfiligojThe Read On 2017 For Agricultural Fortunes Is Anybody’s…
December 5, 2016
As I (and others) have written in recent months, the nation has just experienced one of the most offbeat election Read More
Acceleron B-300 seed coating
Crop InputsThe BioAg Alliance Launches New Yield-Boosting Microbia…
December 5, 2016
As part of their commitment to develop and commercialize innovative microbial solutions for farmers through The BioAg Alliance, Monsanto Co. Read More
ManagementCorn and soy planting update; Takeaways from Climate Co…
December 2, 2016
AgriBusiness Global Editor Dave Frabotta Joins Paul Schrimpf for a discussion of global corn and soybean planting trends, and a Read More
Radish cover crop taproot
Crop InputsSoil Health Institute, Datu Research Receive Grant To E…
December 1, 2016
The Soil Health Institute (SHI) and Datu Research have announced a $626,000 grant from the Walton Family Foundation to quantify the 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