Food Scarcity - Dexia AM

How is Demand for Food Evolving?Three interrelated factors are increasing the demand for food•“We have found that food demand, grain demand, oilseed demand tends to be pretty insensitiveto what the global economy is doing. It is really driven by demographics. We keep adding mouthsto feed.“ (CHS Inc at the Reuters Food and Agriculture Summit, 2009)•Population Growth Global population is growing by ~75 million/annum, and is projected to reach 9.2 billion by 2050•Rising Incomes – a growing middle-classCorrelation between rising incomes and increasingconsumption of food per capita•Changing Dietary PreferencesShift from meat-poor diets to meat-rich diets• 35-40% of all cereal produced in 2008 wasused as livestock feedRelationship between meat consumption and per capitaincome, 20025World population is estimated to grow by 40% by2050 and, as diets change and incomes increase,demand for food is likely to grow by 70% (FAO)May 2010UN and World Bank, 2006