AM - Tuesday, 4 December , 2007 08:03:00 Reporter: Simon Lauder
TONY EASTLEY: There are 1.3 billion people in China, and they're now eating twice as much meat as they did in 1990.
The demand for more meat is quite staggering, but so too is the increase in grain production needed to feed the extra animals.
Two studies being released today indicate the days of cheap food are coming to an end and a range of factors are conspiring to transform food production and markets on a global scale, with some big implications for Australia.
Simon Lauder reports.
SIMON LAUDER: As Asia grows in wealth, so does its appetite for meat. The executive director of the Australian Farm Institute, Mick Keogh, says that has big implications for Australia.
MICK KEOGH: Australian consumers have been spoilt for the last 50 years. They've had very low and very low-priced and very high-quality food, and Australia's always been predominantly an exporter, and that's meant there's always a surplus of supply.
This is starting to change, and I guess the holiday for consumers might be over, but perhaps it represents an opportunity to farmers.
SIMON LAUDER: Mr Keogh says Chinese people are eating twice as much meat as they did in 1990. Most of those animals need grain to eat.
MICK KEOGH: What you're seeing is Chinese consumers moving away from three meals of rice a day to a diet that's much more varied and includes animal protein, and that has quite significant implications for global demand.
SIMON LAUDER: It's a trend reflected right across Asia, and it's also highlighted by the International Food Policy Research Institute.
In a report to be presented in Beijing today, the institute says there are other factors also making food less abundant and more expensive.
The report's lead author is Joachim von Braun.
JOACHIM VON BRAUN: Sort of a perfect storm situation, but some of these factors, especially storm demand, and there to stay. The world is more crowded, climate change is undermining water systems, and puts heat stress on crops, which makes it very difficult to respond with higher yields in the measure-producing areas in the future.
So these problems may not go away quickly.
SIMON LAUDER: The International Food Policy Research Institute says government subsidies for the biofuel industry are effectively a tax on food because they increase the demand on grains.
Mr von Braun says poor countries in South East Asia and Africa are the most vulnerable.
JOACHIM VON BRAUN: These people with $1 a day have to divert large sums of their little money, large shares of their little money, to buy food, and therefore cannot afford other things and buy a cheaper and less healthy diet, and the children will not go to school. It perpetuates poverty.
SIMON LAUDER: Mr von Braun says a world with less food, demands more global trade, and developed countries need to be more flexible.
Mick Keogh from the Australian Farm Institute says Australia should take advantage of the increased demand by growing more for export.
MICK KEOGH: On our doorstep, and with some of our major trading partners, there's very rapidly expanding opportunities, and we would be, I guess, a bit bereft if we just completely ignored them and said no, we're just going to look after ourselves.
You know, Australia has always had a role in feeding the world, and this opportunity is one that Australian farmers would love to have a go at. We'd love to kick off the drought and have an opportunity to really take advantage of some of these changes that are occurring.
COZ Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
