China’s Corn Starch is of Great Competitiveness

China’s starch industry has developed fast in recent years with strong governmental support. Owing to overcapacity in starch industry, starch producers have been facing intense competition in last few years.

There are two kinds of starches, native starch and modified starch. Major varieties of native starch include corn starch, potato starch, cassava starch and wheat starch. Native starch industry plays a key role in the development of the whole starch industry, as it is crucial in guaranteeing downstream production like modified starch and related derivatives.

Domestic raw material supply can meet the demand from native starch production except cassava, which is a strong support to improve the competitiveness of China’s native starch industry. Native starch deep processing industry is the most important end user of native starch in China, consuming 15.45 million tonnes of native starch in 2008. Besides, native starch is also used in other downstream industries such as food processing, papermaking and beverage.

With abundant raw material supply and low manufacturing cost, corn starch has become the most important native starch variety in China. The corn starch output had jumped to 14.50 million tonnes in 2008 from 9.00 million tonnes in 2004, with CAGR of 12.66%. With the requirement of  strict environmental protection, small scale manufacturers with little investment in environmental protection have been gradually phased out. Owing to low price and cheap transportation cost, China’s corn starch is quite competitive in Eastern Asia and Southeast Asia.

All findings are from CCM’s report Future of Starches in China. If you are interested in this report,  please feel free to contact us at econtact@cnchemicals.com.

(Guangzhou China, October 19, 2011)

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