Top 100 CEO Interviews
Issue No. 18 - August/September 2004
Food and thought
Every quarter, BankSA produces an enlightening collection of key economic indicators that provides a snapshop of the State’s performance and immediate prospects. Interestingly, food and thought (education) are hugely relevant.
The latest edition of Trends reports that our agricultural sectors can sense long-term opportunities to come in Asia.
Trends speculates that rising incomes in countries such as China and India, and growing demand for protein and value-added products, are increasing the export potential of South Australian produce.
"There are opportunities for SA producers who can tap into Asia’s rising demand for protein and value-added products - a demand that is expanding as incomes rise," Trends says.
Low exposure to the region had protected SA from the Asian ‘meltdown’ in the late 1990s, but now "a steadier Australian dollar... presents opportunities to drive deeper into emerging export markets in nearby developing countries".
According to Trends, as developing countries become more affluent, meat consumption rises.
"Growing middle classes spend more of their rising incomes on meat, dairy and niche agricultural products — although religion could limit growth in India," Trends reports.
"Those in developed countries eat three to four times as much meat and fish, and consume five to six times as much milk products as developing Asia and Africa.
"With rising incomes, increasing urbanisation (urban dwellers in developing countries consume 40% more red meat per person than those located in rural areas) and changes in tastes away from rice and the like, the consumption of protein (meat and dairy in particular) are set to considerably rise in coming years."
At the same time, this may act as a buffer against the trend of populations in Western countries to eat less meat as they age.
Since the early 1980s, the consumption of milk in developing countries has increased by more than 3% per year, w...
