Global Poultry Consumption - Research Paper Example

 Global Poultry Consumption There has been a global increase in the production and consumption of poultry due to change in lifestyles, health concerns and income. Poultry leads in trade growth and meat production. Over the past decade, the production and consumption of poultry has increased by 45% to over 80 million tons (Pattiso, McMullin, Paul and Bradbury 3). The drastic changes in the People’s Republic of China have resulted to a striking alteration in the food consumption trends marking an increase in poultry consumption. China has a large population and any change in the per capita poultry consumption could lead to a remarkable impact on trade. These changes have had significant implications on the food marketers and policy makers. This paper focuses on the global poultry consumption, the rapid growth of consumption in China and the amount of corn the global flocks consume. The global consumption of poultry has risen rapidly in the past few decades. The increased consumption is characterized by consumer preference for high quality at a relatively low cost that results from efficient production. Production and consumption of poultry has increased globally by 53%; turkey 13%, goose meat 53% and duck meat 67% as stated by Poultry Science. The statistics do not include value added products although alternative production approaches including food processing and restaurants attract higher prices. The largest producers of poultry include India which produces 217% followed closely by Brazil with 112% and China with 67% (Poultry Science). Asia accounts for a large percentage of the world’s population and this is associated with the increasing demand and consumption of poultry products. The graph below shows the poultry consumption in Asia as compared to the rest of the world. Fig 1: Per- capita poultry consumption Source: The poultry site.com. 1 June 2010. The trend is notable in other parts of the world including Africa and the Oceanic region although Africa lags behind on global average due to the poor economic conditions. The graph below shows the consumption in these two regions as compared to other parts of the world. Fig 2: Poultry consumption in the Oceania and Africa as compared to other parts of the world Source: The poultry site.com. 10 Sept. 2010. Increasing income and better marketing have resulted to a remarkable increase in consumption over the past two decades in China. The buying habits of consumers have changed with an increase in the amount of chicken consumed leading to an expansion of the eating places. The total annual poultry consumption in the urban areas have increased progressively; it increased from 7.5 pounds in 1990 to 18.3 pounds per capita in 2006 (WATTAgNet.com). The latest figures from the Ministry of Statistics show a 244% increase in poultry consumption. The annual poultry consumption in the rural areas reflects the same trend as it increased from 2.75 pounds in 1990 to 7.7 pounds per capita in 2006. The latest data from the China’s Ministry of Statistics shows 281% increase (WATTAgNet.com). The increase in consumption over the past few decades can be attributed to the increased income and this is expected to continue due to the relatively low prices of poultry products. Most of the sales take place in the wet markets that are easily accessible to the consumers and maintain high hygiene standards. The increase in income will result to a rise in the poultry consumption in areas where the per capita income is less than $5,000. The per capita income in China was $2000 in 2007 as a result, the market has a huge potential for poultry consumption (WATTAgNet.com). As the income of the inhabitants increases they are becoming more health conscious and opt for poultry over pork which is the traditional stable protein. The younger population prefers poultry as it has more protein and less fat in comparison to pork. The increasing trend has resulted from convenience and hygiene concerns as the richer citizens buy poultry in more expensive places including restaurants and markets. The traditional wet markets still exist in cities and towns and are still popular. However, chicken bought in wet markets requires a great deal of time to cook. Instead of cooking, most people choose to buy ready to eat poultry meat from supermarkets or eat it outside. There has been an increase in the consumption of poultry in the fast food outlets, hotels and restaurants. It increased from 4.4 million metric tons in 1998 to 7 million metric tons in the year 2008 (WATTAgNet.com). The market share of the total poultry also increased from 30% to 44% in the same period (WATTAgNet.com). The consumption of poultry meat is affected by a number of factors including supply of feeds (corn) and the GDP among other factors. It can be noted that consumption follows GDP. The graph below shows the relationship between poultry consumption and the GDP. Fig3: World GDP growth rate and the percentage increase in the world chicken meat production Source: The poultry site.com. 1 June 2010. The global poultry production recorded an increase in the past century and this is expected to continue in the current century. If a crisis in the supply of grains strikes, the supply of chicken will be impacted negatively. Per capita income has been on the increase, size of human population and the cost of grain and the overall effect has been increased demand of poultry. The rapid gains in production and trade show greater feed (corn) efficiency, with a shorter time required for production as compared to other livestock. Feed (corn) costs play an important role when it comes to poultry production costs. The production of ethanol has adverse effects on the poultry production since it has led to the higher cost of production. Nonetheless, there has been increasing demand of poultry products and producers around the world continue to benefit from this. There have been increases in the corn production that has led to adequate supply for all the uses. The average corn production per acre has doubled from 71.9 bushels in 1974 to 152.3 bushels in 2008 as stipulated by RFA (2010). In spite of the increase in ethanol production, the amount of corn available for other purposes has recorded an upward trend. Ethanol production utilizes the starch portion while the remaining is used as livestock feed. This has led to an overall increase in meat production globally. The graph below shows how corn was utilized. Fig 4: Uses of corn Source: RFA. 19 Oct. 2008 Poultry is raised for human consumption and the feed conversion ratio shows that chicken convert it into body mass more efficiently as compared to other livestock. Increased poultry consumption among the high income earners will result to rising demand for grains due to the conversion ratios for animal feed as stipulated by Zhou and Tian (68). This will result to increased pressure on the staple food. This has adverse effects on the poor as their food budgets are more constrained and their nutritional condition is vulnerable to decreased consumption. Additionally, the high income group may suffer from problems associated with overnurition. It is important to note that the prices of poultry meat are dependent on the global trends in corn prices. The prices of corn affect the expenses of raising the chicken and also act as an incentive to grow crops leading to a further increase in the expenses. The advantage of the increased demand in poultry meat boosts the prices which benefits the operating margins. There has been an increase consumption of poultry meat that can be attributed to increased wealth in the emerging markets including China. It can be observed that the availability of feed specifically corn is the limiting factor of poultry production (IDRC). China has plentiful feed resources but they are of poor quality hence utilized poorly by poultry. The collaborative project by Canada and China has resulted to effective techniques to improve feed efficiency, establishing a base for production and developing new feed resources. This will have a significant impact on agriculture and provide economic benefits and social solutions to the population, producers and the animal feed. Poultry consumption has been on the rise in the past years and the trend will undoubtedly continue in the future. Poultry meat has become the ‘global choice’ among different countries and generations. There are many setbacks facing poultry consumption and production the major one being the expenses incurred through corn (feed). There should be efficient production methods to ensure sufficient production of feed, consumption and other purposes. The demand for poultry meat is increasing and the supply should be compatible by use of appropriate technology to boost production. The future market in China is very promising as there has been an increase in income and increased popularity of chicken over other meat products. Poultry consumption has the in thing and this field holds future possibilities for both the producers and consumer. Works Cited IDRC. Poultry Production in China and the Potential for Using Enzyme Preparations. 30 May 2003. 11 Nov. 2010. . Pattison, Mark, McMullin, Paul & Bradbury Janet M. Poultry Diseases. (6th ed.). Elsevier Health Sciences. 2- 14. 2008. Poultry Science. The Global Importance of Poultry. 9 Sept. 2008. 11 Nov. 2010. . RFA. Policy Positions: Food vs. Fuel. 19 Oct. 2008. 11 Nov. 2010. . The poultry site.com. Global Poultry Trends - Chicken Consumption Rising in Africa and Oceania. 10 Sept. 2010. 11 Nov. 2010. . The poultry site.com. Asian Chicken Meat Consumption Trends 2010. 1 June 2010. 11 Nov. 2010. . WATTAgNet.com. China gobbling up more poultry. 30 April. 2010. 11 Nov. 2010. . Zhou, Zhang- Yue & Tian, Weiming. Grains in China: Foodgrain, Feedgrain, and World Trade. Ashgate Publishing. 2005. 68- 69. Read More