World Grain - June 2014 - (Page 8)

FROM THE EDITOR-IN-CHIEF Urbanization sways future of food O f the many geopolitical, cultural and economic forces that drive demand for food, often causing broad changes that impact grain milling, hardly any is more important than expanding urbanization. Even in America, where the grand movements of people from rural to urban settings may appear to have run their course, shifts still are occurring as different locations favored by various ethnic populations cause fluctuations in consumer demand for specific foods. It is mainly the developing nations of Africa, Asia and South and Central America that have large population, as much as half, still residing in rural areas. Most of these people are primarily engaged in sustenance agriculture, in turn having little or no influence on commercial grain-based food demand. These are areas where changes are likely in the near future. Weighing how future surges in urbanization will affect the unfolding of the food industry in these countries is essential to appraising the future of the grain business. That is especially the case if the prospective urbanization has sufficient power to prompt major changes in the structure of the global food industry, in manufacturing as well as retail distribution. It is no surprise that China has captured the lead in people moving by announcing a dramatic program to relocate millions from rural settings where they have mainly been engaged in basic farming to established as well as new urban centers. This is the first time that China, or indeed any nation, has ever announced such a formally coordinated program aimed at a people movement of this dimension. In the past, urbanization, in China or in other nations reaching back to the 18th century when agriculture experienced its first modernization and thus required less labor, occurred in reaction to where jobs vanished and new employment opened. The new China program envisions 100 million additional people being transferred from rural areas to cities by 2020 along with improved living conditions for 100 million who had previously moved into urban settings that are not deemed desirable. 8 The current effort in China actually represents a cutback from a proposal made last year that aimed at having 70% of the country's population of 1.4 billion people residing in cities by 2025. The new plan targets 60% living in cities by 2020, compared with a current urban-dweller share of 54%. Dealing with a population well in excess of a billion means that these numbers are huge, especially as this is the first time that the government has assumed responsibility for designating from where rural dwellers will be moved as well as their new location. The plan emphasizes attention to the quality of life in cities, which certainly includes food availability and distribution systems. The plan's goal of better integration of former rural dwellers into urban lifestyles only hints of the massive investments that the government will be required to make for improved roads and construction, for better schools and hospitals, and for expanded local transportation systems. Huge infrastructure spending is promised by the new plan to meet the target that every city with a population of 500,000 and above will have high-speed rail service and smaller cities will have expressways. Relating such ambitious urbanization plans to China's grain industry matches well with the broad belief expressed by Beijing that urbanization is the same as modernization, and that its implementation represents the nation's future. The plan itself underscores this by pointing out that every developed nation is urbanized and industrialized, a combination that practically assures tremendous change in the food industry. Considering that China is only part way toward achieving these goals, the path now being pursued is of consequence for the global grain and food industry. After all, moving as far as China has toward urbanization has radically transformed its food system and has done much to change how the global food system is structured. Hundreds of millions of new consumers promise even greater change. Morton I. Sosland Editor-in-chief Chairman Publisher EDITORIAL STAFF Editor-in-Chief Editor Managing Editor World-Grain.com Editor European Editor China Consultant Designer Charles Sosland Dan Flavin Morton I. Sosland Arvin Donley Meyer Sosland Susan Reidy Chris Lyddon Fengcheng Wang Ryan Alcantara PUBLISHING STAFF Vice-Chairman L. Joshua Sosland President and Publishing Director Mark Sabo Vice-President and Chief Financial Officer Melanie Hepperly Audience Development Director Don Keating Director of On-line Advertising and Promotions Carrie Fluegge Promotions Manager Lon Davis Director of e-Business Jon Hall Advertising Manager Advertising Coordinator Advertising Materials Coordinator Digital Systems Analyst Circulation Manager Nora Wages Sharon Alexander Debbie Maniez Marj Potts Judith Tinburg WORLD GRAIN (ISSN 0745-8991) Volume 32, issue 6, is published monthly by Sosland Publishing Co., 4800 Main Street, Suite 100, Kansas City, MO 64112 U.S. Periodicals postage paid at Kansas City, MO 64108 U.S. and additional mailing offices. Canada Post International Publications Mail (Canada Distribution) Sales Agreement Number 40612608. Send returns (Canada) to Pitney Bowes International, P.O. Box 25542, London, ON, N6C 6B2. Printed in the USA. POSTMASTER: Send address changes to WORLD GRAIN, PO Box 324, Congers, NY 10920-0324. © Sosland Publishing Co. All rights reserved. Reproduction of the whole or any part of the contents without written permission is prohibited. WORLD GRAIN assumes no responsibility for the validity of claims in items reported. Sosland Publishing Co. is a division of Sosland Companies. Inc. Editorial and advertising inquiries should be directed to our world headquarters at 4800 Main St., Suite 100, Kansas City, Missouri 64112 U.S. Tel: 1-816-756-1000, Fax: 1-816-756-0494 or E-mail worldgrain@sosland.com. Requests for reprints of articles should be sent to reprints@sosland.com or call 1-816-756-1000. June 2014 / World Grain / www.World-Grain.com http://www.World-Grain.com http://www.World-Grain.com

Table of Contents for the Digital Edition of World Grain - June 2014

World Grain - June 2014
Table of Contents
From the Editor-in-chief - Urbanization sways future of food
Calendar of Events
Australian Grains Industry Conference
News Review - Wilmar, First Pacific to acquire Goodman Fielder
With CFP acquisition, Milner renamed Grain Craft
Smaller harvest drops GrainCorp profit 43%
CBH adds to executive team
Cargill completes Vietnamese feed plant expansion
Tiger Brands to mothball several Nigerian flour mills
ADM’s first-quarter earnings hurt by weather
ADM appoints oilseed vice-president
Alliance Grain results up in first quarter
Ingredion’s earnings drop on weather costs
African leaders urged to boost agriculture
Richardson increases canola capacity
Former president of James Richardson & Sons dies
The Andersons earnings up on ethanol, rail
Bunge reports loss in first quarter
Grain Market Review - Rice
Country Focus - Romania
Feature - Serving a Changing Market
Interflour’s growth strategy
The Flour Fortification Initiative
Feature - Canada in the spotlight
Next year’s event
Feature - A perfect storm
Feature - Grain Storage and Handling Projects
Feature - Opportunities and Challenges
Feature - Cereals Europe 2014
Feature - De Decco's path to success
Ownership structure
Feature - Global Grain outlook
Growth in livestock sector translates into more feed, protein demand
Rice Quarterly - Methods for stabilizing rice bran
Rice News Roundup - Group changes name to Food Fortication Initiative
India’s basmati exports to Iran slow
Thailand hopes for comeback in jasmine rice market
Gambia can produce 2 million tonnes of rice
Pakistan rice exports up 20.19%
Philippine farmers bring in post-typhoon harvest
Pakistan wants rice export re-examined
Feature - IAOM MEA celebrates 25 years
Grain Operations - Mycotoxin management
Technical Profile - Enhancing cozonac
Supplier News
Product Showcase
World Grain Archive
Ad Index/Reader Information Form International Faxback Program

World Grain - June 2014

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