Demand Drivers: Significant Increase in Demand

Population Growth: Cumulative Growth in World Population 1999 – 2009*

 

Increase Standard of Living: Per Capita Meat Consumption in China**

 

Increased Biofuel Demand: % of US Corn Production used for Biofuels

 

* World bank ** FAO *** Earth Policy Institute, Doreo Analysis

 

There are three key drivers of increased demand for agricultural produce:

1. Increased Population: World population grows by 75M to 80M new people every year. The equivalent of adding a new country the size of Germany, the EU’s most populated country, to the world every year.

2. Increased Standard of Living: As countries develop economically,

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the population’s standard of living improves. A key result of increased standard of living is a significant increase in the consumption of meats and fats. This increase in meat consumption translates into dramatic increases in feed requirements as it takes 2kg of feed to produce 1kg of poultry and 7kg of feed to produce 1 kg of beef.

3. Increased Biofuel Demand: As the world continues to search for alternative energy sources we can expect continued growth in Biofuel demands for agricultural produce. Currently today, in addition to 26% of the US corn production, 50% of Brazils sugar cane production is diverted to Biofuel production.