Plan for grain processing industry development 2011 2020 issued in feb. 2012


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Plan for Grain Processing Industry Development 2011-2020 was published on 24 Feb. 2012, pointing out the development direction for corn deep-processing industry.

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Plan for grain processing industry development 2011 2020 issued in feb. 2012

  1. 1. Plan for Grain Processing Industry Development 2011-2020 Issued in Feb. 2012Summary: Plan for Grain Processing Industry Development 2011-2020 was published on24 Feb. 2012, pointing out the development direction for corn deep-processing industry.Tags: corn deep-processing, grain processing, supply, corn starch, corn product, consumptionvolume, developmentOn 24 Feb. 2012, the Ministry of Industry and Information Technology of China and the Ministryof Agriculture of China co-issued a Plan for Grain Processing Industry Development 2011-2020(the Grain Plan), which points out the development direction for corn deep-processing industry inthe future, according to CCM International’s March issue of Corn Products China News.In accordance with the Grain Plan, Chinas grain processing industry achieved a great growthfrom 2005 to 2010: its total output value reached USD412.7 billion in 2010, surging by 70% overthat in 2005. Besides, the number of large and powerful enterprises also enjoyed an increase: thenumber of producers with wheat processing volume over 400 tonnes per day reached 427 in2010, 3.1 times of that in 2005. Besides, the proportion of top 10 corn deep-processingenterprises sales revenue among total in the industry reached 38% in 2010. However, there werestill problems in grain processing industry, such as unreasonable industrial structure: lots of smallproducers are with inferior production capacity; unsatisfactory quality guarantee system and poorcapability of research and innovation.In view of the current development situation in grain processing industry and the prediction ofdomestic and global economy in the next few years, the Grain Plan points out some specificgoals for the industrys development by 2015 and 2020: the total output value shall reachUSD619.0 billion and USD1,095.2 billion by 2015 and 2020 respectively; the supply of grain foredible use shall be no less than 257.5 million tonnes and 252.5 million tonnes by 2015 and 2020separately; the supply of grain for feed use shall be no less than 200.0 million tonnes and 227.5million tonnes by 2015 and 2020 respectively.In order to achieve the goals mentioned above, the Grain Plan proposes some detaileddevelopment direction for grain processing industry, and the following will be the focuses of corndeep-processing industry.
  2. 2. Firstly, to eliminate inferior production capacities and encourage leading enterprises to developfurther, increasing industry concentration. Moreover, the Grain Plan specifically pointed out thatby 2020, 3 million t/a capacity of corn starch shall be eliminated, accounting for 10.6% in its totaldomestic capacity in 2010.Secondly, to restrain the capacity expansion of some corn products, such as monosodiumglutamate, citric acid, lysine, threonine, tryptophan and alcohol; to stably develop starch sugarand sugar alcohol industries; to encourage the development of some enzymic preparations,organic acids and functional starch sugar all with high added value. In addition, the Grain Plandefinitely encourages using non-grain raw materials to replace corn for production of the aboveproducts.Thirdly, corns supply shall be preferentially guaranteed for edible use and feed use, instead ofindustrial use, and the proportion of corns consumption in deep-processing industry among totalshall be limited to a reasonable level, which is suggested to be less than 26%.Finally, foreign investors shall be restrained to enter into corn deep-processing industry. In fact, in2010, the proportion of corn processing volume of foreign-owned companies among total was26%, while those of private-owned and state-owned companies was 66% and 8% respectively.And the proportion of foreign-owned companies shall be further reduced in the future, in order tobetter control corns consumption volume in deep-processing industry.Whats more important, the Grain Plan proposes some specific measures to guarantee corndeep-processing industry to develop toward the above direction. For example, to strengthensupervision and increase the threshold for entrance, to intensify financial support for leadingenterprises or small and medium-sized enterprises with advanced production technology or highadded value products and promising prospect; to exempt the import tax of some equipment thatcant be manufactured at home for governmentally encouraged grain processing industry. Thesemeasures will positively help corn deep-processing industry in the future, if they are implementedeffectively.As a whole, the Grain Plan does not provide new ideas for corn deep-processing industry, withoutobvious effect on the industry in the short term, but it will work better for a long term, just likeother related policies did, such as the 2011 edition of Catalogue of Industries for Guiding ForeignInvestment, and the 12th Five-Year Plan for Food Industry. Overall, these policies definitelypointed out the development direction for the industry, and future regulations will be in line with
  3. 3. these policies, so as to guarantee corn deep-processing industry to head toward the directionruled within them.Source: Corn Product China News 1203 of Corn Products China News 1203:7.8%, domestic output of MSG enjoys an increase in 2011Both import and export volumes of PLA in China increase in 2011HFCS consumption in China expected to increase in 2012Import volume of L-phenylalanine in China increases by 48.8% in 2011Chinese corn products Imp. & Exp. analysis in January 2012Domestic furfural price increases slightly in March 2012Domestic prices of four key amino acids perform differently in March 2012Plan for Grain Processing industry Development 2011-2020 issued in Feb. 2012Analysis into domestic lysines market in 2011Xiwang Sugar plans to increase corn starch and corn germs supply to Xiwang Group relatedcompaniesDomestic potato industry expected to develop fast in the next few yearsDomestic corn price heads up in March 2012Corn Products China News, a monthly publication issued by CCM International on 20th of everymonth, reveals the driving force of news stories and deeply analyzes the influence of trends anddynamics on domestic and international corn deep processing industry.About CCM InternationalCCM International is dedicated to market research in China, Asia-Pacific Rim and global market.With a staff of more than 150 dedicated highly-educated professionals. CCM International offersMarket Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis allthrough its new proprietary product ValoTracer. For more information, please visit International Ltd.Guangzhou CCM Information Science & Technology Co., Ltd.
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