Foodsectornews.com - Govt. Introduces Plan to Develop Chinese Food Industry

Govt. Introduces Plan to Develop Chinese Food Industry

Sunday, 17 June 2007

Government of China has unveiled a five-year plan to boost profits for food industry. The plan is aimed to tackle low efficiency, low profits, lagging technology & facilities, and other problems faced by Chinese food industry

The govt. didn't reveal the amount of investments on its new initiatives.

Food industry in China has shown considerable growth in recent times as consumers begin to buy more processed-food. Govt. says that the industry has witnessed significant international funding and over thirty of world's leading fifty food manufacturers have established either a joint business or a fully owned production unit in China.

Last year, nearly 4,000 food production units got international funding. These units currently make for 27 % of total food industry revenue i.e., US$ 68.32 Billion.

The govt., however, is looking to push higher processing and is trying to make its presence felt in global market. It aims to promote domestic sector by encouraging modernization and food science along with brand establishment, higher safety & quality standards and improved resource management.

Edible oils, meat, fruits & vegetables, sugar, beverages, marine, and dairy product sectors are ready to take advantage from the plan.

For dairy, govt. plans to make big investments to create new farms and research on breeding to improve milk supply, which is amongst the major hindrances in the growth of industry at present.

"Insufficient resources & limited demand in China's dairy industry is hindering its growth. As per industry figures, around 55 % of China's processing capability is currently utilized, which signifies that there's a huge scope for development in China's Dairy Industry," said an analyst at RNCOS.

Chinese consumers, on an average, utilize 21.7 kilograms of milk annually, a fifth of world's average. This is expected to rise by 25 kg in the coming 2-3 years but industry is optimistic to achieve better results through increased marketing.

China requires these innovations for the growth of its food industry. A recent DPP (Democratic Progressive Party) survey revealed that nearly 90 % of locals were concerned about quality & sanitation problems in food products that are imported from China (Mainland).

In 2005, Output of Chinese food industry went up to US $ 250 Billion, almost double from 2000, with average growth of 19.4 % between 2000 & 2005.