1. China’s food security challenge and the implications for business

2. China's urban population will expand from 572 million in 2005 to 926 million in 2025 and hit the one billion mark by 2030; More than 350 million people will add to its urban population by 2025, more than 240 million will be migrants in China; Over the next two decades, migration will play a much larger role, accounting for about 70 percent of the new urban residents; China’s Urbanization

3. Rapid Urbanization More New Megacities City Renewal Enhanced Intercity Connection Guangzhou Baiyun new town China High Speed Rail Map

4. Growing Middle Class Year 2010Year 2020 Disposable income of urban residents Population Annual disposable income of urban residents Population （ Million ） （ US$: 000 ） （ Million ） 1Upper class>3012 13Lower upper class15~3053 34Middle class9~1569 61Emerging Middle Class6~966 57Low income class4~639 36Poorest class<423 202262 Total 109M Total 200M

5. The current arable land per capita in China is about 0.08 hectares, which is only about 40 percent of the global average, one-seventh the United States, and a quarter of the Brazil level. The level of arable land per capita in 2008 is about half of that in 1961 Availability of Arable Land Arable Land Comparison (hectares per person) Source: The World Bank Country Name 196119701980199020002008 vs. 1961 World0.340.300.250.220.230.2161% European Union0.310.280.250.24 0.2269% United States0.980.920.830.740.620.6061% Brazil0.300.360.370.340.330.32108% India0.350.290.240.190.160.1440% China0.160.120.100.110.100.0852%

6. China Urbani zation  Less rural workforce  Arable land shrinkage  Environment pollution  Water shortage  Soil erosion  Climate change Combined with Self-sufficient of food is not sustainable China Urbani zation  Wealth creation  Dietary upgrade  Wealth creation  Dietary upgrade Increase demand on staple and non-staple food Supply & Demand Gap Import/FEX Price volatility & Inflation China’s Food Supply & Demand

7. Thank You!