The banking system may collapse but people always need to eat

When the most of the world financial markets are falling apart, the investors don’t know what to do and demand for luxury and even non-luxury goods is falling down, an agriculture industry is holding up extremely well.

Agriculture is the one of few branches which doesn’t suffer from financial crisis as strongly as others, it’s true. Grain still remains a priority direction of all CIS’ agriculture. The second priority direction is an animal fodders for the further development of animal husbandry industry.

The consumption of grain products, meat and milk is rising up. According to the researches in China as a vivid world example (because of its enormous economic progress and huge population) “Caiani & Company”, an investment-advisory firm based in Melbourne, milk consumption has grown seven-fold, olive oil six-fold. China is consuming more meat: 60% more poultry, 30% more beef and 25% more wheat. But in that very moment people started to drink more alcohol. For example, Chinese are drinking four times as much wine. But even taking into account this growth, people in China consume only one-third as much milk and meat as people in more “wealthy” countries such as EU countries and Australia. It is a result of little progress, because even in poor countries more people are better nourished thanks to a bit more grain, a lot more meat, and much more milk.

As to the Europeans, protein intake in EU countries “is unlikely to expand much, but a combination of rising incomes and population in developing countries could increase demand by more than 5% annually for years to come”, writes The Economist.

So, people started to eat more and more healthy food (than fast food, for example). But the problem is that an expanding supply at the necessary level will be difficult. Because the arable land under cultivation is limited. As an example, in India and China there the consumption is growing fast, many of the most fertile areas are being developed for the roads and factories.

In response to local concerns about the loss of critical food supplies, several governments have imposed taxes or limited quotas on exports: on a key ingredient of fertilizer in China, on grain in Argentina, on rice in India.

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