Everyone knows the world’s population is increasing. The U.S. Grains Council has initiated a report called Food 2040 to look at future food demand and expectations in the Asian market. Tom Dorr - USGC President and CEO - says the report reveals a few things people may have known - but not appreciated or recognized. In the past - Dorr says the U.S. was dealing with countries with political and economic challenges:
“What we now realize is that many of these countries have typically stabilized their political environments and are ginning up very strong economic activity. In some cases there is twenty to thirty years of sustained economic growth that is leading to a very strong emerging middle class.”
This is occurring in countries with dense populations and limited resources - Dorr says - and it’s also driving a population with money to use for high-quality food. He says that means it’s a sustained market that will be there long term - year after year.
Since 1990 - at least one-billion people have been moved into the middle class - defined as families with the purchasing power of 20-thousand dollars per household. Dorr says these families have the ability to purchase food products more regularly. Within the next 10 years - another billion people most likely will be moved into the global middle class. By 2040 - there could be 2-billion more in that middle class - Dorr says - which creates a brand new emerging economic power in Asia and India…
“Food 2040 is identifying these possibilities and trying to begin to flush out new opportunities because they won’t require the same food systems. They will require different, more advanced models including portion control, quality control, distribution systems that accommodate these food safety requirements with densely populated communities. Food 2040 gives you a look at the future possibilities of an economic opportunity that is very exciting.”
The U.S. Grains Council encourages everyone - especially producers, agribusinesses and food processors - to look at the Food 2040 report closely and facilitate discussions on how U.S. ag and food industries can adjust to accommodate and capitalize on the outlined opportunities.
The study can be found at www.grains.org.
Image courtesy of grains.org.