China to Continue to Drive Commodity Demand
December 21, 2012
China's continued influence on agricultural commodity demand and global economic growth, along with increasing weather extremes, stand out as key issues for North American food, beverage and agribusiness in 2013, a recent poll of Rabobank clients shows.
The poll of more than 350 executives from leading companies in the North American food, beverage and agribusiness industry was conducted at Rabobank's recent Markets Forum held in New York City.
Asked to name the country or region they believe will have the greatest impact on global agricultural commodity demand over the next 10 years, 61 percent of respondents chose China. That view of China's continued dominance far exceeded views of India (14 percent), Africa (10 percent), Latin America (9 percent) and Southeast Asia (6 percent).
Despite recent signs of slowing economic growth in China, the large majority of executives see China continuing to be the most important driver of long-term global economic growth.
Bill Cordingley, head of Food and Agribusiness Research and Advisory for Rabobank in the Americas, said, "These results are not surprising and reflect the significant impact that China has had on the food and agribusiness industry over the past 10 years, globally, as well as in North America. China today has the second largest middle class in the world at 157 million, which will surpass the U.S.'s middle class in the next 10 years, so China's demand for agricultural commodities is going to continue to grow."
Reprinted in part from Rabobank