Volume 2(2013)

PAGE 10/15
Table 6 Supply and demand of beef

Unit Million tons
Sources : Policy Research Institute Ministry of Agriculture, Forestry and Fisheries (2011)

As explained above, China is thought to expand the consumption of major foods including wheat, soybean, corn, and beef at a pace exceeding domestic production and increase the import. However, as the major exporting countries have room to expand production, unless the weather is weird, it is unlikely that the supply and demand in the world get stringent for at least the next 5 to 10 years when Xi Jinping leadership leads china.

On the other hand, globally, the country where the expansion of food consumption is expected is not only China. Food demand is expected to expand also in developing and emerging countries such as India and Eastern European countries, associated with rising income levels, etc. In addition, since it is also expected that the demand of agricultural products expands as the raw materials of biofuels, the situation will continue where the demand exceeds the supply slightly. Consequently, food prices is thought to rise continuously (refer to Table 8).

Table 7 Price change of commodities

Unit Million tons
Sources : Policy Research Institute Ministry of Agriculture, Forestry and Fisheries (2011)

The expanding pace of energy in China is exceptionally high in the world and this pace is expected to continue along with the growth of Chinese economy (refer to Fig.7). The trend is unlikely to change at least during the office term of Xi Jinping leadership.