Showing posts with label VC. Show all posts
Showing posts with label VC. Show all posts

Wednesday, February 8, 2012

Booming Agriculture Investment in China

Agriculture has played a predominant role in the Chinese economy and will become increasingly important in the foreseeable future. The potential high growth of China’s future agriculture industry has attracted more and more investors, with modes including capital investments and new real investments.

Ding Lei, founder and CEO of the leading China-based internet technology company NetEase.com, Inc., proposed his idea of pig breeding project in 2009, which aroused great public concerns. Now the pig breeding project is underway smoothly, and the first patch product of 10,000 pigs will be put into the market at the beginning of 2012. 

Financial capital investors have paid much attention to China’s agriculture industry in recent three years. In 2010, PE (private equity) fund to Chinese agriculture projects approached USD1,489 million, more than the total value in 2006–2009. In 2011, the number of companies to be listed and their major businesses including agriculture industry increased by 30% over 2010, with PE/VC investment of more than RMB1,000 million.

According to the data from Zero2IPO Group, 10 VC funds with total value of USD173.4 million have invested in agriculture industry in Q3 2011, ranking fifth among industries. And 12 VC funds with total value of USD170.3 million in food/ drink industry, ranking the sixth among industries.

It can be estimated that there are more commercial opportunities in China’s agriculture investment business. Aiming to present you a comprehensive investment environment in China’s agriculture industry, CCM International has newly launched AgriChina Investor, published on 25th  every month. By evaluating the potential player or industries, this newsletter can help you discover new investment opportunity and find out the profitable node in the value chain of agriculture industry. If you are interested in this newsletter, please contact us for the free sample.


About CCM International
CCM 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 offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer. For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China
Tel: 86-20-37616606

Friday, January 6, 2012

2011 Annual Performance of Major Corn Products in China

There are great challenges, as well as huge opportunities of China's corn product industry in 2011. Different corn products have different performance during the whole year, affected by the factors of high raw materials cost, domestic inflation, government's strict supervision or even restriction, as well as some booming downstream markets.

As the most important raw material of corn products, corn always attracts abundant attention. And corn price had run an uptrend in general from Jan. to Sept. 2011 majorly because of its insufficient supply. The average domestic market price of corn increased by 18.6% to USD363/t in Dec. 2011 compared with that in Jan. 2011, partly caused by which, corn products' average prices also rose by 8% during the same period.

Based on the sound economic environment and some promising market situations, a few corn products have enjoyed fast development in 2011, such as starch sugar, especially HFCS (high fructose corn syrup), some amino acids, like lysine. Take HFCS as an example, due to the insufficient supply of sucrose and its high price in 2011, HFCS' demand and price have enjoyed obvious increase, attracting lots of producers to enter into this industry or expand the production of HFCS, whose capacity all over the country reaches about 3 million t/a in 2011, up 38.9% over that in 2010.

However, some corn products have suffered bad market situation in 2011, like vitamin c (VC). Owing to VC's terrible oversupply, domestic and export prices of VC have maintained a low level in 2011, resulting in great loss of VC producers.

As for future development in 2012, policies, market and industry environment make 2012 a key year for corn product's development. With the expected growth of China's economy in 2012, domestic corn product industry will still boom, but production costs will remain a problem, whilst corn price will still run at a high level due to the tight relationship between corn's supply and demand, even though corn's output enjoyed a bumper harvest in 2011. Besides, governmental restrictions will be still the leading factor to affect the industry, while it's a great opportunity for large enterprises to develop further by merging small ones.

The detailed annual review of China’s corn product industry in 2011 is shared in CCM International’s December issue of Corn Products China News. If you need a more comprehensive understanding, please feel free to contact us.

Highlight News of Corn Products China News 1112:
-VC's demand structure should be changed in the future in view of its serious current oversupply situation.
-Corn products' import and export volumes increase by 66% and 17% respectively in Oct. 2011 compared with those in the previous month.
-Lysine price in China maintains a downtrend in Dec. 2011, and will keep that way in the short run as predicted.
-Domestic corn starch price in Dec. 2011 still maintains a downtrend due to oversupply.
-Development of fuel ethanol using grain as feedstock will be restricted in China by new policies published in Nov. 2011.
-2011 edition of the guide of key fields in high technology industry with priority to develop was forwarded by CBFIA on 19 Nov. 2011, involving some corn products.
-In late November, the Chinese government launches a new announcement to reduce the business income tax for small and micro enterprises in the next four years.
-Output of sucrose in 2011/2012 is expected to increase to 12 million tonnes in China, negatively affecting the starch sugar industry.
-Corn price in China begins to bottom out in Dec. 2011, majorly thanks to its demand increase.
… …


About CCM
CCM 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 offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.
For more information, please visit http://www.cnchemicals.com.
CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China
Tel: 86-20-37616606

Thursday, December 29, 2011

2011 Annual Review of Corn Product Industry

China's corn product industry not only faced great challenges but also enjoyed great opportunities in 2011, against the background of the high cost of raw materials, domestic inflation, government's strict supervision or even restriction, as well as some booming downstream markets. Affected by these factors, some corn product producers have to restrain their production or even shut down their plants, but others manage to win great profit in 2011, according to CCM’s December issue of Corn Products China News.

Corn, as the most important raw material of corn products, always attracts abundant attention. And corn price had run an uptrend in general from Jan. to Sept. 2011 majorly because of its insufficient supply. But the newly harvested corn this year, whose output is estimated to reach 184.5 million tonnes, up 4.1% over that in 2010, has turned the price to head down since Oct. 2011. Overall, the average domestic market price of corn increased by 18.6% to USD363/t in Dec. 2011 compared with that in Jan. 2011, partly caused by which, corn products' average prices also rose by 8% during the same period.

Besides, the generally sound local economic environment and stable development of food, beverage and feed industries also support the price increase of corn products. In detail, China achieved 9.7%, 9.5% and 9.1% of annual growth rate of GDP in Q1, Q2, and Q3 2011 respectively, and it's expected that the annual growth rate of GDP can average at 9.2% and 8.9% for the whole year of 2011 and 2012 respectively (it was 10.3% in 2010) according to Chinese Academy of Social Sciences. In addition, the averaged 5.5% CPI and 6.4% PPI during Jan. and Nov. signifies that "inflation" is the major word to describe China's macro economic performance in 2011. Moreover, in accordance with the National Bureau of Statistics of China, the output of food industry and beverage industry during the first ten months this year increased by 16.8% and 18.7% respectively compared with those in the same period of 2010; in light with the Ministry of Agriculture of China, feed's output is predicted to reach 169 million tonnes in the whole year of 2011, up 4% over that in 2010.

By dint of the above general economic environment and some promising market situations, a few corn products have enjoyed fast development in 2011, such as starch sugar, especially HFCS (high fructose corn syrup), some amino acids, like lysine. Take HFCS as an example, due to the insufficient supply of sucrose and its high price in 2011, HFCS' demand and price have enjoyed obvious increase, attracting lots of producers to enter into this industry or expand the production of HFCS, whose capacity all over the country reaches about 3 million t/a in 2011, up 38.9% over that in 2010.

However, some corn products have suffered bad market situation in 2011, like vitamin c (VC). Owing to VC's terrible oversupply, domestic and export prices of VC have maintained a low level in 2011, resulting in great loss of VC producers. And insiders are looking forward to the launch of encouraging governmental policies to turn around the stagnant market, like a new VC entrance threshold.

As for governmental policies, corn deep-processing industry has been restricted to some extent in 2011, and the following are highlights.

… …

As for the forecast in 2012, policies, market and industry environment make 2012 a key year for corn product's development. With the expected growth of China's economy in 2012, domestic corn product industry will still boom, but production costs will remain a problem, whilst corn price will still run at a high level due to the tight relationship between corn's supply and demand, even though corn's output enjoyed a bumper harvest in 2011. Besides, governmental restrictions will be still the leading factor to affect the industry, while it's a great opportunity for large enterprises to develop further by merging small ones.

Source: Corn Product China News 1112

Content of Corn Products China News 1112:
VC's demand structure should be changed in the future
Chinese corn products Imp. & Exp. analysis in October 2011
Lysine price in China maintains downtrend in Dec. 2011
Corn starch price in China still maintains downtrend in Dec. 2011
New policies to restrict development of fuel ethanol using grain as feedstock in China
New guide about domestic high technology industry with priority to develop forwarded
Chinese government strengthens support for small and micro enterprises
… …

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.

About CCM
CCM 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 offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.
For more information, please visit http://www.cnchemicals.com.
CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China
Tel: 86-20-37616606

Thursday, November 3, 2011

China’s Corn Price Drops Slightly in October 2011

The 5th International Corn Industry Conference, a platform of communication and cooperation for related government departments, producers, traders and investors in corn and related industries, was held on 22 Sept. 2011 by Dalian Commodity Exchange and Dalian Municipal People's Government.

As a participator, CCM International draws a conclusion through communicating with the experts and their speeches that corn deep-processing industry will keep being restrained by the Chinese government and corn price will also remain at a high level in 2012. It serves as a challenge and opportunity for corn deep-processing producers. What are the reasons that make the government restrain domestic corn deep-processing industry? What kind of business opportunities exist in this industry?

In addition, owing to the newly marketed corn in 2011, domestic corn price witnesses a slight decline in Oct. 2011, resulting in the decrease in corn starch price as well. However, their decline scales are not large and it's believed that they may still run at a high level in the long term. Is there any reason that causes the decline of corn price?

Besides, what policy changes brought to domestic VC industry and feed industry? How about the import and export situation of PLA in China? What is the trade pattern of corn in China?

All the answers will be shared in CCM’s October issue of Corn Products China News, which aims to provide you the latest update and market dynamics of corn products in China. If you are interested in this newsletter, please feel free to contact us at econtact@cnchemicals.com.

Headline news of Corn Product China News 1110:
-Both PLA's import and export volumes witness increase in 2011
-Fast development in China's HFCS industry
-Chinese corn products Imp. & Exp. analysis in August 2011
-Domestic threonine price has seen a downtrend since Aug. 2011
-Domestic corn starch price heads down in Oct. 2011
-China's corn deep-processing industry probably remain being restrained in 2012
-Domestic VC industry may face a new regulation
-The 12th Five-Year Plan of feed industry comes out
-Star Lake Bioscience to improve lysine's production technology
-7.5%-12.4%, final determination of the anti-subsidy duty on EU's potato starch
-Corn price in China drops in Oct. 2011
-Analysis into corn's trade pattern in China
(Guangzhou China, October 28, 2011)


About CCM

CCM 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 offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Monday, August 22, 2011

Standard for Mixed Food Additives to be Implemented in Sep 2011

August 22, 2011, CCM - In July 2011, the Ministry of Health of the People's Republic of China published the first national standard for mixed food additives—National Food Safety Standard: General Rules on Mixed Food Additives (the General Rules), which will take effect on 5 Sept. 2011 as planned. The standard is believed to bring much positive effects on the mixed food additive industry and help it develop healthily and rapidly in the future, according to CCM’s August issue of Corn Products China News.

Against the backdrop of the 2008 melamine scandal and many food incidents happened since then, Chinese government strengthens its supervision of the food industry over the past two years. And food additives have become the focus of the government's attention in 2011—it has launched several relevant policies and standards, such as the new Standards for uses of Food Additives issued on 20 April 2011, particularly prompted by recent food incidents such as "lean meat essence" scare in March 2011 (centred on pork products tainted with ractopamine and clenbuterol, denoted by the Chinese nickname "lean meat essence" or shou rou jing, with which if pigs are fed, they can be prevented to accumulate fat). Now the General Rules are the second step for the government to further strengthen regulation in food industry.

The highlights of the General Rules are as follows. Firstly, it sets some basic requirements for mixed food additives: mixed food additives shall not be harmful to human health; shall be in accordance with the new Standards for uses of Food Additives issued in April 2011; shall not contain any chemical reaction in production or produce new chemical compound, whilst the amount used shall be kept as low as possible. Besides, mixed food additives processors shall establish management system for mixed food additives' production and clearly stipulate the content and detection methods of every food additive.

Secondly, the General Rules stipulates the maximum quantity of hazardous substances in accordance with weighted data result and pathogenic micro organisms in mixed food additives. But only two kinds of hazardous substances' maximum quantity is detailed—lead and arsenic—both at 2.0 mg/kg when the weighted data result is not applicable. As for pathogenic micro organisms, they shall not be detected to exist in end products.

Thirdly, labels of mixed food additives are specified in detail. All of the labels shall cover the name, specification and content of the product and contact information of manufacturer, production license number, etc. Moreover, the name of each single food additive in the production of mixed food additives shall be labelled, and the mixed food additives for retail sales on the market or in catering industry shall be labelled with the content of every single food additive besides its name.

In addition, imported mixed food additives shall have labels or specifications written in Chinese with country of origin and the name, address, and contact information of domestic agencies, besides the label content mentioned above. (name, address and contact information of foreign manufacturers can be written in their local languages.) It is worth noting that the production license number can be exempted in the label of imported mixed food additives.

It's believed that the General Rules will impose much positive effects on the mixed food additive industry in the future, according to CCM’s August issue of Corn Products China News. On one hand, mixed food additive manufacturers can be qualified to apply for food additive production license, which can help improve the average quality of mixed food additives. According to an announcement issued by the State Administration for Quality Supervision and Inspection and Quarantine (AQSIQ) on 7 December 2010, all food additive processors shall apply for "Food Additive Production License" before 1 March 2011. However, mixed food additive processors can't apply for the license because there used to be no national standard for mixed food additive industry. Now, the execution of the General Rules grants them the access.

In this point, lots of small mixed food additives manufacturers will be eliminated because they probably can't get the license. According to the General Rules on Production Permission of Food Additives published on 13 Aug. 2010 and coming into force on 1 Sept. 2010, only those food additives manufacturers getting over 133 points can get the food additive production license. (The full mark is 150 points and it's judged by 75 items including production technology, production environment, production management and so on.) That means the license is difficult to obtain, especially for small processors, but without which they are forbidden to produce mixed food additives. Obviously, large and powerful manufacturers can get benefits and increase market share.

On the other hand, the price of mixed food additives may be pushed up in the future, as the production cost will increase because the production environment and equipment shall be upgraded to meet the requirements of the food additive production license. The cost of raw material—single food additive—will particularly rise. Corn starch, for example, is a common raw material. It can be generally divided into industrial grade and food grade; the former has lower price but pathogenic micro organisms beyond limits usually. Some manufacturers still use industrial grade corn starch for low price, and what's more important, there's no standard to regulate it before. But now, based on the General Rules, industrial grade corn starch can not be used for mixed food additives' production any more, which will increase the production cost.

Some experts consider that the General Rules may reduce the supply of mixed food additives and thereby the demand for single food additive may also decline. However, in CCM's opinion, the demand for single food additive won't be reduced but will increase in the long term. Because the General Rules makes mixed food additives industry more standardized and the public will have more confidence in it, which can increase its demand.

However, the General Rules' content is too general and hard to execute to some extent, and it needs more detailed rules and regulations. It's reported that Chinese government may issue related detailed rules and regulations in the near future.


Content of Corn Products China News 1108:
Zhengda Linghua suspends lysine production for relocation and capacity expansion
376,053 tonnes of citric acid exported in H1 2011
Chinese corn products Imp. & Exp. analysis in June 2011
VC price keeps stable and VB2's rises slightly in Aug. 2011
Glucose monohydrate price drops in recent two months
Standard for mixed food additives to be implemented in Sept. 2011
Corn oil industry may welcome potential adjustment to VAT system
High-value added amino acids: profit contributor of Meihua Group
100,000t/a HFCS production lines launched by Huakang Pharmaceutical
Baolingbao performs well in H1 2011 thanks to HFCS
Potato starch import volume declines in H1 2011
Corn price may maintain an uptrend till this October

Corn Products China News, a monthly publication issued by CCM International on 20th of every month, presents the latest news of China’s corn deep processing products to reveal the driving force of the event and deeply analyzes the influence of the event on domestic and international corn deep processing industry.

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http://www.cnchemicals.com for more information or contact econtact@cnchemicals.com