Best Yet to Come for Agriculture
Worldwide agriculture is a $3 trillion business and in the U.S., the agriculture sector is leading the recovery from our most recent economic recession.
“In the history of the world there has never been a greater increase of wealth in such a short period of time as we are seeing in China. This plays right into our hands as an agriculture exporter,” said Mike Dwyer, director of global policy, USDA Foreign Ag. Service.
The recession was a major speed bump for the U.S., Japan and western European countries, China and other emerging economies barely slowed down. That’s important to the U.S. agriculture industry, because their growth has a huge impact on food demand, but regardless of the state of our economy, food demand stays about the same.
“It doesn’t take a degree in economics to figure out that an upturn in demand for good and a level line in food production is going to be good for farmers,” Dwyer said.
In China, there are currently about 125 million households that are considered middle class. By 2020 that number is expected to jump by another 223 million that go from basically subsistence level to middle class. They are going to want to buy more high protein, processed food.