It’s awful timing, really, considering that grilling season is about to start. Beef is at its highest price since 1987, the AP reported over the weekend, retailing for around $5.28 per pound. Drought is one major reason for the price spike, as herd sizes dwindled during last year’s scorching summer. But one more constant pressure on global beef prices is the ratcheting up of demand from China.
Why are the Chinese falling in love with T-bone steaks? One, because they’re delicious (the T-bones). But two, because the Chinese can increasingly afford meat. A fast-growing Chinese economy has propelled its per capita GDP upward, meaning a higher standard of living for many citizens. The below chart shows China’s per capita GDP in constant, 2005 dollars.
Screen_shot_2014-04-14_at_9
China’s current per capita GDP of $6,100 may not sound large to most Americans, but consider that when adjusted for inflation, the measure more than doubled between 2002 and 2012. That kind of growth would be outrageously fast in the US, where per capita GDP grew by 9.8 percent over that same period.
As a rapidly developing Chinese economy moves people into the middle class, their tastes are changing. Wealthier, more urban Chinese are increasingly eating meat, and their appetites have pushed their meat consumption up. By comparison, US beef consumption has flattened and started to fall off.
3 Steps To Join #FowlerNation!
1. Subscribe To The Fowler Show:
http://bit.ly/SubscribeFowlerNation
2. ‘Like’ The Richard Fowler Show on Facebook
http://www.facebook.com/RichardFowler…
3. ‘Follow’ Us on Twitter
http://www.twitter.com/fowlershow
These Patrons make the Fowler Show possible ($20+ monthly donation on Patreon.com/FowlerShow) & we couldn’t do it without them!
Truthservers.com
Are you a fan of The Fowler Show? Become a Patron & help support independent media! Learn more here:
http://www.patreon.com/fowlershow
Want to help out but don’t have any money to donate? Donate your account & help us get our stories out on social media. Learn more here:
http://www.donateyouraccount.com/fowl…
If you liked this clip, share it with your friends and hit that “like” button!
1,500 Subscriber Behind The Scenes Reward Video –
http://www.youtube.com/watch?v=LT9x1P…
Subscribe to our Podcast on iTunes for free!
https://itunes.apple.com/us/podcast/t…
@fowlershow
@richardafowler
http://www.facebook.com/richardfowler…
http://www.fowlershow.com
http://fowlershow.tumblr.com/