7 June 2021

1 minute read

Asia

The plant-based protein industry will eat into consumer demand for meat as the rapidly growing sector expands, Cargill Inc Chief Executive Officer said on Friday.

"Our analysis is that in ... three to four years plant-based will be perhaps 10% of the market. We're a large beef producer and that is a big part of our portfolio. So there's some cannibalization that will occur," MacLennan said at a National Grain and Feed Association convention.

Privately held Cargill is a supplier of pea protein to meat alternative company Beyond Meat Inc through its joint venture with PURIS Foods.

MacLennan then went on to say that China’s feed grain industry isn’t likely to become self-sufficient.

Reuters reports that the industry will still depend on imports despite the country's efforts to ramp up domestic production.

Tightening domestic supplies of feed grains and soaring demand from China's pork producers has triggered record feed grain import purchases this year.

The surge in import demand has come despite directives by Beijing to boost domestic grain output and reformulate pig and poultry feed rations to reduce reliance on imported corn and soy.

"I think they realize comparative advantage ... Grow and produce what fits your climate, your natural resources, your soil, your water supply. They don't have it the way we, Brazil, Australia do."

"They need to depend on trade," he added.

Source: Reuters