China consumes around half of the world’s cement, iron and coal, but the number that really amazes us is pigs. Particularly because China’s appetite for pork is growing.
Some facts from a bullish Oppenheimer report on pork producer Zhongpin (NASDAQ: HOGS).
China dominates perhaps no other commodity market as much as it dominates pork belly.
- China produced and consumed 51 million tons of pork in 2010, about half of global consumption
- Chinese pork production and consumption is growing at 6% CAGR
- As much as the Chinese love pork, their per capita consumption still ranks only fourth in the world. Therefore the market has a long way to grow.