How To Play China’s Rampant Demand For Meat

It’s a basic fact throughout human history: As societies become richer, their diets change.

More specifically, the consumption of protein soars – and China is the latest example of this phenomenon.

In 1980, daily calorie consumption in China stood at 2,163. But by 2009, the figure had shot to 3,036, according to World Bank statistics. Over the same period, protein intake per capita nearly doubled.

But it gets even more striking when you look at China’s meat consumption.

China’s Growing Hunger for Meat

According to a report from PricewaterhouseCoopers, China’s meat intake per capita has quadrupled since 1971. And since 2003 alone, it’s risen by another 25% to 57 kilograms per person annually.

But there’s still room for more growth. This figure would have to grow by another 30% just to reach the same level as Taiwan.

And that growth is well underway. PwC estimates that Chinese meat consumption will rise to 74 kilograms per capita over the next decade.

Most of the meat eaten in China today – about 75% – is pork. The country is the world’s largest pork producer and half the planet’s domestic pig population lives there.

Another roughly 20% of Chinese meat consumption is poultry. But what happens when the Chinese develop a taste for beef?

The PwC study gives an inkling.

An Imminent Scramble for Agricultural Land

In short, an additional 37 million to 50 million acres of agricultural land will be needed. That’s roughly equivalent to the size of Great Britain!

As you might expect, China is already on the hunt for agricultural land overseas to satisfy its growing meat demand.

For example, Australian beef is highly prized, so Chinese buyers are hungrily eyeing up areas of land in Australia that’s for sale by family-owned S. Kidman & Co. The total available is equal to about three-quarters the size of England and has nearly 200,000 cattle grazing on it.