The emerging middle class and the world market for beef

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The emerging middle class and the world market for beef

Shirley Tarawali

Assistant Director General, International Livestock Research Institute, Kenya

Panel session at the International Livestock Congress,

Houston, Texas, 3-4 March 2016

ILRI/Stevie Mann

Animal source foods: 5 of 6 highest value global commodities (total value of these five: over US Int $ 700 billion)

FAOSTAT 2015(values for 2013)

Cow milk

Rice, paddy

Indig. Pig meat

Indig. Cattle meat

Indig. Chicken meat

farmed food fishwheat

soybeansmaize

sugar cane

tomatoes0

50

100

150

200

250

0

500

1000

1500

2000

2500

net production value (Int $) billion production (MT)

Net

pro

ducti

on v

alue

(Int

$) b

illio

n

Prod

uctio

n (M

T) m

illio

ns

Cattle meat$171 billion

Gains in meat consumption in developingcountries are outpacing those of developed

1980 1990 2002 2015 2030 20500

100

200

300

400

500

600

700

800

developingdevelopeddeveloping at same per cap. as developed (hypothetical)

Milli

on m

etric

tonn

es

Drivers of change: population

Anticipated change 2013 – 2050Asia: +20%

Africa: +113%Europe: -4%

2015 GDP growth forecast

By 2050 over two-thirds of the world will live in cities

Figures for 2014

Middle class?

Rapidly increasing middle class

2009 2020 20300

1000

2000

3000

4000

5000

6000

7000

8000

9000

N.America EC C/S America Asia Pacific SSA MENA Total

Mill

ions

of p

eopl

e

]

Middle class ($10-100 per person daily)Nearly 5 billion by 2030: two-thirds of the total

Fewer people below US$1.25/day

2010 2020 20300

50

100

150

200

250

300

350

400

450

500

Millions of people below US$1.25/day

East Asia Pacific E.Europe Central Asia L.America CarribeanMENA S.Asia SSA

Per capita GDP and meat consumption, 2005

E.Asia Pacific

China

South Asia

SSA

High income

0

50

100

150

200

250

% growth in demand for livestock products to 20302000 - 2030

11

E.Asia Pacific

China

South Asia

SSA

High income

0

50

100

150

200

250

E.Asia Pacific

China

South Asia

SSA

High income

0100200300400500600700800

E.Asia Pacific

China

South Asia

SSA

High income

0

50

100

150

200

250

FAO, 2011

Dark bars: Based on anticipated change in absolute tonnes of product comparing 2000 and 2030Light bars: new estimates using IMPACT model, 2005 to 2030, courtesy Dolapo Enahoro, ILRI

Beef Pork

Poultry Milk

Increase in middle class means increase in beef consumption

OECD C/S America Asia Pacific S.Asia SSA MENA-100

0

100

200

300

400

500

600

% change in number of middle class, 2000 to 2030

OECD C/S America Asia Pacific S.Asia SSA MENA0

50

100

150

200

250

% change in consumption of beef, 2000 to 2030

Demand for beef in 2050

About 90 million tonnes beef needed to meet demand in 2050

N.America

20%

SSA23%Asia

46%

Other11%

Demand for livestock commodities in developing economies will be met – the question is how

Scenario #1Meeting livestock demand byimporting livestock products

Scenario #2Meeting livestock demand by

importing livestock industrial production know-how

Scenario #3Meeting livestock demand by

transforming smallholder livestock systems

Replacing the 90% of locally produced animal commodities is not feasible

EconomicallyAfrica’s food import bill (2013): US $ 44 billion

About one fifth is livestock (highest after cereals):Meat: US $ 5 billion; Milk: US $ 4 billion Business as usual: the import bill sky rockets

Or for livelihoodsAlmost 1 billion rely on livestock for livelihoods and produce over 70% of the livestock products today43% of the agricultural workforce is female

The value of beef imports

2010 2020 2030 2040 20500

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

USA CentralAm SEAsia SSAfr NAfr Asia

USD

mill

ions

Sustainable beef production

Animal welfare as a component

Environmental dimensions- Beef cattle produce over 2,500 million tonnes CO2 eq per

annum- Which is 41% of all livestock sector emissions- Emission intensity for beef is over 300kg C02 eq per kg of

protein- But there are big opportunities to mitigate emissions,

especially where intensities are currently highest (S.Asia, SSA, South America)

Sustainable beef consumption?- Debates over what is

‘appropriate’ consumption….

- Current recommendations 70-90g per capita per day

- For many millions a small amount of meat could make a significant contribution to a nutritious diet

ILRI/Susan Macmillan

Sustainable animal food systems are a must

• Productivity and efficiency:– Sufficient food with lower

environmental foot print: Animal health, genetics, feeding

• Animal source foods:– Safe, not wasted and consumed in

appropriate quantities

• Emerging challenges:– Zoonotic diseases– Anti-Microbial Resistance

Beef feeding the middle class: feeding the World?

• Understand drivers of demand

• Ensure animal welfare is addressed

• Address environmental sustainability

• Consider the role of beef in diets

• Ensure opportunities for positive impacts on livelihoods are not missed

ILRI/Stevie Mann

The presentation has a Creative Commons licence. You are free to re-use or distribute this work, provided credit is given to ILRI.

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