Asian Agrifood Market Growth
Macroeconomic trends indicate sustained growth in agrifood imports over the last 20 years, with China showing significant growth over the last 15 years. Forecasts indicate that this trend will continue, if not accelerate, with increasing populations and urbanisation. Furthermore, the largest opportunity lies in the production of distinctive, counter-seasonal products and products that are traceable and secure.
China Agrifood Demand.
Global dairy exports to China grew 5.3% (volume) in 2016/7 and by 12.2% (value). China is Australia’s largest dairy market with significant actual and projected growth.
Increasing Chinese middle class purchasing power is evidenced in a significant increase in per capita beef consumption.
Growth in bio-fuels has been driven heavily by Government policy, motivated by a concern for reducing greenhouse gas emissions, achieving energy security and renewable energy targets. The evolution of biodiesel markets over the next decade will continue to be influenced by government policy. Demand is expected to grow significantly as usage diversifies – for example into bio-jet fuel for the aviation sector.
It is envisaged that Hamersley Agriculture’s cropping production will service the beef and dairy requirements of the business. However, there is growing demand from Asia and the Middle East for arable crops, providing a viable opportunity for Hamersley Agriculture to increase production for export in the future.