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The following article was published in our article directory on November 1, 2010.
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International Cheap Food Era Will End

Article Category: Business Management

Author Name: xia zihui

Basically, more and more strong global food demand, which is what it might be for the next decade to provide the most attractive investment opportunities, the reason why.

The Prince and the poor children spend the same price to buy food, but the money spent on their total percentage of their income, the same food for poor children is much more expensive. This difference is obvious, but the difference on global food prices may not be so obvious.

In fact, the growth of food prices is not commensurate with income growth, food prices appears to be negligible for the rich, so they finally put a lot of stuff in the trash.

Let us look at the United States from the "emerging market" to become a "superpower" of the economic heat history. According to the Federal Reserve Bank of Dallas figures provided in 1919, ordinary Americans need to work 2 hours and 38 minutes to buy 3 pounds of chicken, and now only takes 15 minutes is enough.

From the statistics point of view, the ongoing research of the Ai Di Shengwei Kim wrote: "In 1929, Americans took 23.4% of disposable income spent on food. By 1950, this figure dropped to 20.6%. 1975 dropped to 13.8%. By 2000, dropped to single digits. and this figure includes eating out at home and spending. "

Addison continues: "The German people have disposable income to eat at home for 11.4%, French, Japanese and Korean, respectively, the proportion of 14% to 15%, 24.6% Brazilians. Chinese people put 39.4% of disposable income to eat at home. "

"Even the Canadians are not Americans so lucky, though much less the population of Canada, Prairie and rich in cattle and sheep. Canadians to 9.2% of disposable income to eat at home, which the Americans for the home and proportion of expenditure on eating out less. "So, imagine such a world: the rapid global population growth, and there are more and more people live from subsistence into a relatively affluent. In fact, you do not have to imagine such a world, as it has come.

As Brazil, India and China, the world's major emerging markets such as the continuous development of national wealth will be increased. With the increase of national wealth, people's diet in terms of quantity or quality have been improved on.

Even if food intake does not increase in number, improve the quality of food enough to push up food prices. For example, instead of with a meal of chicken rice soy Garmisch Garmisch rice seems no big deal, but according to figures provided by the U.S. Department of Agriculture, 1 pound of chicken meat production requires 6 pounds of food, so if hundreds of millions of people are choosing to eat chicken and not to eat soy products, the global grain markets will undoubtedly be affected, and this impact is not confined to food markets.

As the organic food website www.opcs. biz pointed out, "the production of chicken requires 700 gallons 1 pound of water, but with the same amount of water, farmers can produce 16 pounds of broccoli or 20 pounds of other vegetables."

Thus, far-sighted investors can not ignore trends in the global diet. With the continuous development of new markets, their food, water and energy demand will grow, but the global food, water and energy supply is limited, that means prices will continue to rise.

Addison wrote at the end of the article: "Americans have become accustomed to cheap food. Explore the psychology of ordinary Americans, he'll probably tell you: This is the birthright of ... ... they will be surprised. The Americans less and less of their income to food, a century later, this trend will reverse. "

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