7 This Chinese mother-and-daughter team runs a rural crossroads restaurant and is seeking their share of the country’s expanding economic pie. 7 Reasons Why Here’s a closer look at the factors pointing to the China market’s long-term potential for growth, both for CHS and the U.S. soybean producers it serves. China Is Becoming a Better Customer 1 Rising global power China is a developing economic powerhouse with a growing, increasingly middle-class urban population. Average income is $2,310 for urban residents and $697 for rural residents, who are moving to cities to close the income gap (see chart on page 11). The economy is quickly recovering from the global economic slowdown and returning to an 8 to 9 percent growth pace. This signals continuing movement toward more middle-class menus. China falls below the world average for per capita consumption of meat and vegetable oil, lagging far behind neighboring Taiwan and Hong Kong. “If China reaches just 20 kilograms per capita consumption of vegetable oil, the world average, it would need several million more metric tons of soybeans,” says Brian Schouvieller, CHS vice president of international business. China’s explosive growth presents problems, including heavy reliance on exports that are vulnerable to currency fluctuation, environmental concerns and potential political backlash from rural areas that aren’t sharing in the wealth. In the countryside, where some producers still use horses and oxen, visitors driving BMWs and Toyotas stand out in stark contrast. 12 January/February 2010 CHSINC.COM
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7 Reasons Why
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