CCM>Free Info >News Update>1st volume No.2>
Last Update: Dec 31, 2000
Food Additives & Feed Additives
Sample of Market Analysis
I. Industrial Policy
 
Saccharin Banned in Baby Food (Last update: 09/13/2000)
Recently State Economic and Trading Committee,Ministry of Finance, Ministry of Foreign Trade Cooperation , Ministry of Health ,State Quality and Technology Supervision Bureau ,State Industrial & Commercial Administration and State Customs issued announcement to strengthen the management on the production, sales and application of saccharin. It is forbidden to add saccharin or other synthetic sweetener in the baby food. For food allowing saccharin or other synthetic sweeteners, it is required that the food manufacturers add them in accordance to the food standard, controlling the dosage and label the name and quantity of sweeteners. The future aim is to limit the application of synthetic sweeteners in food, narrowing the scope and decrease the dosage. (Source: People's Health News)
 
Regulation on New Feed & New Feed Additive (Last update: Oct 2000)
Ministry of Agriculture published a regulation (No.37) on the Management of New Feed and New Feed Additive. There are total 17 clauses in this regulation. New feed refer to the feed that has just been researched but has not been used before, including single component feed developed within China and single component feed used in other areas instead of feed industry before. New feed additives refer to those feed additives that developed in China but have not been approved in the past. According to this regulation, the central government encourage the research on new feed and new feed additives, on condition of safety, efficiency, free of pollution. Before production, the researchers/producers must submit application to Ministry of Agriculture. During the trial production period, the producer and researchers have obligation to test the safety, efficiency and stability of feed and feed additive. Any researchers can not transfer the technology during the trial production. (Source: China Chemical Industry News)
 
Management Method on the Registration of Import Feed and Feed Additives (Last update: October 2000)
Ministry of Agriculture published a regulation (No.38) on the Registration of Import Feed and Import Feed Additive. There are total 23 clauses in this regulation. According to this regulation, any foreign enterprise who want to sell feed or feed additive must apply the license from Ministry of Agriculture. The valid period for license is 5 years. Before registration, the applicant must provide feed test result and safety test result. Those feed and feed additives that are allowed to sell in China but are proved to be harmful to human health, feed animal or environment will be canceled from the registration. The foreign manufacturers must pay the lost consequently. (Source: China Chemical Industry News)
 
II. News Collection
 
Soybean Protein Active Peptide by Biological Method (Last update: Dec 2000)
Heilongjiang Light Industry Research Institute cooperates with Heilongjiang Jianglong Hongyuan Co. Ltd. to extract active peptide from soybean by fermentation method. The production line of 5,000MT/year of soybean protein active peptide has been set up at the same time and the commercial production began recently. (Chemical Technology Market)
 
Nucleic Acid Production Base in Putian (Last update: Dec 2000)
Fujian Zhen'ao Nucleic Acid Co. Ltd. has been set up in Fujian Putian. The commercial production began recently. It is expected that the production of nucleic acid in the first year will be 200MT/year. In the future, this company will further invest RMB 410 million to the nucleic acid project. The commercial product is expected to supply the southern China and Hong Kong, Macao and Taiwan. (Source: Chemical Technology Market)
 
Nucleic Acid Facility in Zibo (Last update: Dec 2000)
The production line of nucleic acid with capacity of 3,000MT/year has been set up in Shandong Zibo Baoding Biological Engineering Co. Ltd. The commercial product is qualified. (Source: Chemical Technology Market)
 
Food Grade Carbon Dioxide Project in Tianjin (Last update: 11/22/2000)
The largest production line of food grade carbon dioxide, with capacity of 30,000MT/year, has been set up in Tianjin United Chemical Co. Ltd. They use the waste gas from production of glycol to make food grade CO2. It is estimated that the production cost is only 70% that from oversea manufacturers. (Source: China Chemical Industry News)
 
State Dairy Engineering Technology Center in Harbin (Last update: 11/10/2000)
The State Dairy Engineering Technology Center was set up in Harbin recently. It is based on Heilongjiang Dairy Engineering Technology Center and Heilongjiang Dairy Industry Group. The total investment for this center is RMB28.73 million. This is the unique dairy research center in China that focus on research, test, training, engineering technology, equipment installation and dairy manufacturing. (Source: China Chemical Industry News)
 
Angel Enlarges Yeast Production (Last update: Oct 2000)
Being a listed company in Shanghai Stock, Angel Yeast Co. Ltd. decides to invest RMB180 million to build production line of ban yeast (10,000MT/year), active dry yeast (3,000MT/year) and special yeast (2,000MT/year). After enlargement, the total yeast capacity in Angel company will be 25,000MT/year. It is reported that the construction already began. (Source: Domestic Medicine News Collection)
 
A Bight Prospect for Canned Foods Industry (Last update: 10/17/2000)
With the improvement on the living standard of Chinese people and the ever fasting life rhythm, the consumption of the instant foods will increase in the future.It is estimated that by 2005 the consumption on canned food will be 2kg per capita per year. But at present the Chinese consumption is only 1kg per capita per year. Now there are 500 large enterprises in China to produce canned food. The annual production is nearly 3 million MT, 0.8 million MT of them are exported. (Source: China Food Quality News)
 
Domestic Beverage Manufacturers Catch Over Half of Chinese Market (Last update: 09/27/2000)
News from Xinhua shows that the production of beverage from the top ten manufacturers is 3.4 million MT per year, accounting to 45.18% of the total production in China. In 1999, the profit from the top ten manufacturer amounts to 65.09% of the total profit of beverage industry. It signifies that these big Chinese manufacturers have occupied more and more market in China. The top ten manufacturers include Guangdong Roburst Group, Hangzhou Wahaha Group, etc. (Source: International Economic & Trading News)
 
The Adjust of Saccharin Industry Speed Up (Last update: October 2000)

The China government has a strong decision to close down some saccharin factories. China decides to adjust the saccharin industry within one year, 2 years ahead of the schedule. State Petroleum and Chemical Bureau held meeting recently, calling the 14 saccharin manufacturers in China(9 of them are required to stop the production), in order to make plan for the future of saccharin industry.

The industrial adjustment will follow in three stages:1) To control the production to within 24,000Mt in 2000; 2) To figure out the stretagy to close 10 saccharin factories; 3) To figure out the management method for industry and market of saccharin. All the saccharin exported must get permission from MEHECO Commerce Committee and Custom. All the rest saccharin are regarded as for domestic application.

Note: Why China takes strong steps toward saccharin production? To close a factory with saccharin capacity of 3,000Mt/year means the following: 1) about 1,000 employees in the saccharin factory will lost job; 2) about RMB70 million of asset is idled; 3) About 1.35 million Mt sugar market will be resumed;4)about 56 sugar factories will survive (each with cane processing capacity of 2,000Mt/day; 5)about 56,000 working position is offered; 6) about 670,000 peasant will favorite from the cane plantation; 7) total output value will increase RMB4 billions; 8) total profit will increase by RMB430 millions. (Source: State Economy & Trading Committee, cnchemicals.com)

 
Sugar Price Comes to Reasonable (Last update: October 2000)
After the roaring price in the first half year, the price of sugar come to be stable recently. Now the price of sugar in production areas is around RMB3,600-3,650/Mt. The price in sales areas is abont RMB3,850-3,900/Mt. The main reasons for the roaring price in the first half year is that the sugar output in the spring season is less than 6.8 million Mt. The China once released the state stock of sugar to calm the roar. It is expected that the price will further decrease to RMB3,400-3,500/Mt in the near future. The China government decides to closed about 150 sugar manufacturers in the next seasons, cutting about 2.735 million Mt of sugar out of capacity. In the future, the main sugar production areas cover Guangxi, Yunan, Guangdong, Xinjiang, Inner Mongolia and Heilongjiang (Source: China Food Quality News).
 
Sugar Enterprises in Gansu Province will Close Down (Last update: Sept 2000)
News from State Light Industry Bureau says that all the sugar enterprises in Gansu Provinces will stop production this year. The State Light Industry Bureau made this decision on the balance of the overall sugar supply in China. So far the production capacity of sugar is estimated to be over 11 million Mt per year. The Chinese government will control the actual production of sugar to within 8 million Mt per year. After the close down, the demanded 0.12 million Mt of sugar from Gansu province can be satisfied by the sugar from other provinces.