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China's Meat Consumption Causing Global Grain Shortage, Study Finds

Thu May 1, 2008 8:05am EDT
For every bushel of grain used to make U.S. ethanol, six used to support
Chinese meat demand

MIAMI, May 1 /PRNewswire/ -- A change in Chinese meat consumption habits
since 1995 is diverting eight billion bushels of grain per year to livestock
feed and could empty global grain stocks by September 2010, according to a new
study from Biofuels Digest.
    The study, "Meat vs Fuel: Grain use in the U.S. and China, 1995-2008,"
concluded that a complete shutdown of the U.S. ethanol industry would extend
the deadline only until 2013.
    "It's not food, it's not fuel, it's China," said Jim Lane, editor of
Biofuels Digest and author of the report.
    The study determined that China's meat consumption since 1995 has
increased by 112 percent to 53 kilograms per person per year.
    "If the Chinese people had consumed the same amount of meat, per person,
in 2007 as in 1995, there would have been enough grain left over to support
927 million people with food for an entire year," said Lane.
    The study found that the U.S. increased corn production by 157 million
tonnes of corn since 1995.  31 million net tonnes of grain went to support
U.S. ethanol production, and 27 million tonnes supported a 15 percent increase
in U.S. population during the period.  By contrast, the study projected that
livestock grain demand to supply Chinese meat consumption increased by 199
million tonnes between 1995 and 2007.
    "Given that the U.S. population grew 15 percent, the 82 percent increase
in U.S. corn production left plenty for people, plenty for livestock, and
plenty for ethanol," said Lane.  "The bad news is that we have a global fuel
and food crisis of the first magnitude.  The only good news is that it's
easier to find a steak in Beijing."
    The study tracks the meteoric growth in Chinese meat consumption since
1983, a trend spotted early by commentator Lester Brown in his prescient
article "Who Will Feed China?"  In 1995, meat consumption was 25 kilograms per
person, reaching 31 kilograms by 1999, 50 kilograms by 2000, and is 53
kilograms per person today.
    "Chinese meat consumption is still 45 percent less than the average
consumption in the U.S.," Lane warned.  "An additional 277 million tonnes of
grain would be needed to support China at parity with the U.S.  That would
take 68 million acres to grow.  There isn't that kind of arable land available
anywhere is the world, whether we use grains for renewable energy or not."
    The study is available for free download at http://www.biofuelsdigest.com.
    Biofuels Digest is the world's most widely read biofuels daily, providing
a free daily summary of biofuels news via web, email and RSS to subscribers at
more than 1500 organizations.  The Digest is syndicated on Reuters, Fox
Business News and other international media.
    CONTACT:

    Jim Lane
    jlane@biofuelsdigest.com
    786-393-8530


    This release was issued through eReleases(TM).  For more information,
visit http://www.ereleases.com.
SOURCE  Biofuels Digest

Jim Lane of Biofuels Digest, +1-786-393-8530, jlane@biofuelsdigest.com



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