Unformatted text preview: verage in China. More than half of its workforce is involved in agriculture. Even during the economic recession, China’s agro‐import from the European Union has grown (EC 2010). The major export products match with Asia and the Pacific’s major consuming products including fish (15%); prep. of meat & fish (15%); prep. of vegetables and fruits (12%); vegetables (11%); and cereals (6%). 11 World Bank defines food as something which is edible and has a nutrient value. For instance, coffee and tea are excluded because although edible, they have no nutrient value. 14 The biggest market for Chinese agro‐products is Japan followed by Hong Kong, China; the Republic of Korea, Russian Federation and Malaysia. These countries account for 70% of the Chinese agro‐export market with Japan alone buying 41% of the goods. More than half of China’s agro‐import in the Asia‐Pacific region is sourced from Southeast and East Asian countries (2004‐2008) (see Fig XI). Australia, India, New Zealand and the Russian Federation together share about one‐third of agro‐imports. Source: COMTRADE 2011 Source: COMTRADE 2011 15 China’s agricultural imports are mainly driven by increasing per capita income, which has brought changes into food consumption patterns. This has resulted in more imports of vegetable oils and fish or fish products and other high‐value products. About 44% of China’s agro‐import is categorized under animal/veg fat and oils, followed by fish & crustaceans, which accounts for 22% of agro‐import (see Fig XII). India, the other emerging nation, has a population which has been rising by 1.3‐1.4% annually and food production which has been increasing by 3.17% annually. India has more than doubled (136%) the proportion of its agro‐exports sold to regional partners from 2004 to 2008. Bangladesh is the biggest market for Indian agro products with 15% share followed by Japan (12%), Malaysia (9%), Viet Nam (9%) and China (7%). The major products range from Residues, food waste & fodder, followed by Cereals; Fish & Crustaceans; Coffee, Tea, Spices and Sugar & Sugar confectionary. A quarter of the export products consist of Residues and food waste & fodder, which are mainly purchased by Viet Nam followed by Japan (13%) for livestock industries. More than half of the Cereals exported by India go to Bangladesh followed by Malaysia (17%). On the other hand, India’s agro‐import experienced 67% growth from 2004‐2008. Indonesia supplies the largest share, 46%, of these imports. Myanmar is the second largest supplier (11%) by a wide margin and is followed by Malaysia (10%), the Russian Federation and Australia (~5% each) (see Fig XIII). Source: COMTRADE 2011 16 Source: COMTRADE 2011 More than half of India’s agro‐imports fall in the Animal & Vegetable Fat and Oil category (see Fig XIV). This reflects the vast demand for cooking oil (Palm oil in this case) necessary to prepare food products in India. D. Market Potential for Agricultural Products Agricultural trade remains as a major area of focus for policy makers for multiple reasons. The first is the rising global population. It is expected to lead the food demand increase more than proportionately by 2050. Secondly, the concern of food security for the poor remains very real due to the global price volatility for agricultural commodities. The global price rise in 2008 followed by a drop in 2009 due to the economic crisis is the most recent example of this phenomenon. Many of the least developed countries in this region strongly depend on food commodity imports and price dynamics affect consumers. Agricultural trade often suffers from agricultural subsidy and export restrictions by some countries. Thirdly, changing dietary habits also contributes to the significance of the matter. Due to increase in income, a growing number of people consume meat and other sources of protein, vegetables and high‐value food prod...
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This document was uploaded on 02/26/2014 for the course BUSINESS 101 at Manitoba.
- Spring '14