Demand for protein underpins M&A activity in food sector


Global consumption of meat will increase 1.9% a year over the next decade as demand for protein in nations such as China, Mexico, and Brazil supports the market.

The UN's Food and Agriculture Organization forecasts that by 2030 the average person will eat close to 99 pounds of meat per year, compared to 86 pounds in 2007.

The steady rise in protein demand has underpinned a wave of merger activity in the food sector including Tyson Foods' takeover of Hillshire Brands and Shuanghui International's acquisition of Smithfield Foods.

Related stocks: TSN, HRL, SAFM, SEB, HSH, PPC

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Comments (1)
  • 50 cent it is
    , contributor
    Comments (1453) | Send Message
     
    Herbalife is in a much better position to deliver protein to the consumer than the meat companies.
    The conversion ratio of meat is much higher and not as nutritious as isolated soy protein which herbalife produces and sells. hlf has a worldwide distribution system and delivers protein at a much lower cost than meat. It also doesn't have the fat and cholesterol that meat has.
    Look for Herbalife to show up on the m and a radar screen
    12 Jun 2014, 08:10 PM Reply Like
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