Demand for rice in China falls with rising affluence

Demand for rice in China falls with rising affluence
By Valarie Tan | Posted: 23 December 2012 2234 hrs
     
JILIN: China may be the world's biggest rice consumer, but some say demand will fall, as its people become more affluent and consume more meat and dairy products.

Nearly 200 million tonnes are produced in China each year.

But as grain processing became more mechanized, the appetite of affluent Chinese has also became more polished.

On average, a person in China is said to consume 90 kilograms of rice each year.

While that number is also the highest in the world right now, it is also expected to decrease over time.

With growing affluence, the Chinese are reportedly supplementing their diet with more dairy products, such as milk and cheese.

Meat and other protein-rich products are almost considered staple food.

Changing dietary patterns have led experts to predict that rice consumption in China will fall by half in the next decade.

A similar trend is already seen in countries like Japan and South Korea.

Despite changing dietary habits, Singapore-based Wilmar International remains positive.

"Those who eat more protein and dairy products will also demand for better quality rice. They're after the consumer-pack premium rice, so it won't affect demand," said Wu Zhihua, rice division director of Wilmar International.

"In recent years, consumer-pack rice has reached a volume of 6 to 7 million tonnes and is growing at 4 to 50 per cent each year."

Wilmar International is already China's largest producer of consumer-pack oil, under the brand Golden Dragon Fish.

Wilmar International has set its sights on growing its market share of consumer-pack rice - which currently stands at five per cent - by investing in better crops.

Mr Wu said: "Our investment here will be bigger than the ones for normal padi. The farmer must be incentivized to grow better crop for every order. While it's a huge investment, the unique grade of harvested crop can be processed into better rice and in turn fetch a higher price in the market."

Demand will also be kept up by another trend, where rural residents switch from wheat to a rice diet.

It is enough to drive up this year's projected rice consumption to over 137 million tons.

- CNA/xq

- wong chee tat :)