"The output value of China 's fermentation industry is expected to reach USD72.6 billion by 2015," said Mr. Du, Vice Chairman/Secretary-General of China Biotech Fermentation Industry Association (CBFIA), at a meeting held by CBFIA on 8-9 Dec. 2011 in Beijing City about China 's biotech fermentation and relevant industry. He also disclosed some other goals and expectations in detail, as well as the development direction of China 's fermentation industry in the next four years, according to CCM International’s January issue of Corn Products China News.
Normally, fermentation industry includes amino acids, starch sugar, polyalcohol, organic acids, enzymic preparations, yeast and other fermentation products with special functions, like isomalto-oligosaccharide, most of which have enjoyed better development in 2011 over 2010, and the total output of some key fermentation products rose by 12.5% during the first eight months of 2011 over the same period of 2010. In the mean time, the total export volume of key fermentation products increased by 21% to 1.83 million tonnes with their export value amounting to USD2.1 billion, up 24% year on year. Specifically, export volumes of enzymic preparations, starch sugar and glutamic acid witnessed an incredible increase, while those of lactic acid and yeast rose stably, but lysine's and polyalcohol's suffered a decrease due to their booming domestic demand.
More importantly, it's predicted that China 's fermentation industry will still enjoy great prospect in the next four years: the average annual growth rate of its output can reach 15% from 2012 to 2015, which will amount to 30 million tonnes by 2015; the output value is expected to be USD72.6 billion. However, China won't be only obsessed with pell-mell development. Instead, it wants the industry to develop healthily and scientifically. So Mr. Du pointed out some development directions of the fermentation industry in the next four years.
Firstly, fermentation products with high added value and promising prospect will be encouraged to develop preferentially. In light of Mr. Du, the proportion of the outputs of polyalcohol, enzymic preparations, pharmaceutical amino acids and starch sugar in total fermentation products' output should rise to over 70% by 2015 from 60% in 2011. In contrast, the proportion of monosodium glutamate and citric acid should decline to below 18% by 2015 from 24% in 2010.
Secondly, the industry concentration should increase, and leading enterprises will be supported to develop further: the number of leading enterprises with annual revenue over USD1.6 billion and over USD0.8 billion should reach more than 5 and 10 respectively by 2015.
Thirdly, non-grain raw materials, like cassava, will be paid much attention to develop. In accordance with Mr. Du, the proportion of non-grain raw materials' consumption volume in total raw materials' should rise to about 15% by 2015 from 5% in 2010. It's well known that the major raw material in fermentation industry in China is corn, which has witnessed an insufficient supply situation in recent two years, resulting in its continuous price increase. In view of Chinese government's advice, industrial production should not compete against people for food. And Chinese government will try its best to reduce the 28.9% proportion of corn consumption in deep-processing industry in the product's total consumption in 2010 to 25.7% in 2012, by dint of restricting the development of corn deep-processing industry. According to the Guidance about Promoting the Healthy Development of Corn Deep-processing Industry (the Guidance) published in 2007, the proportion of corn consumption in deep-processing industry in its total consumption shall be less than 26%.
Fourthly, fermentation technology should be improved in order to increase the utilization rate of raw materials, reduce the consumption of water and energy as well as pollution. In detail, CBFIA's expected goal is that the consumption of water and energy can decrease by 30% and 18% separately by 2015 compared with that in 2011.
Overall, China is a big production country in fermentation industry currently, but not a great-power one. And there is still a long way to go for domestic fermentation industry to become strong and mature.
Content of Corn Products China News 1201:
GDL in China develops well and stably in 2011
6.3%, domestic output increase of maltodextrin in 2011
Chinese corn products Imp. & Exp. analysis in November 2011
Domestic prices of four key amino acids bottom out in Jan. 2012
Domestic citric acid price heads down in Jan. 2012
USD72.6 billion, output value expectation of China 's fermentation industry by 2015
New Catalogue of Industries for Guiding Foreign Investment still restrains corn deep-processing industry
New Feed and Feed Additive Management Regulations to take effect since May 2012
12th Five-Year Plan for Food Industry published in Dec. 2011
Qingyuan Group launches production lines of glucose and sorbitol in Dec. 2011
Domestic corn price rebounds in Jan. 2012
Corn Products China News, a monthly publication issued by CCM International on 20th of every month, reveals the driving force of news stories and deeply analyzes the influence of trends and dynamics on domestic and international corn deep processing industry.
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