Research Report on Wheat and Processed Products in China

【Report Name】：Research Report on Wheat and Processed Products in China
【Published】：Apr/2011
【Report Code】：SN
【Form】： PDF or Hard copy 
【Delivery】： E-mail or EMS
【Report Price】：PDF Copy 6,050USD

Research Background
In China, wheat is the third most important grain crop after rice and corn. The basically balance of supply and demand is accompanied by a little surplus in good years and structural shortage of special wheat. Even so, with great price increase of global agricultural products, domestic wheat and flour prices has been ascending since 2008. The Chinese government on one hand issued policies to control rapid price increase and on the other hand continuously leveled up wheat protective purchasing price so as to maintain farmer’s enthusiasm for production.

How will China’s wheat production and supply & demand develop at present and in the future? Will wheat acreage and production capacity expand? How is wheat further-processing industry to be modified? What kind of prospect wheat industry is facing? All the above are the major concerns from home and abroad.

Beijing Shennong had organized a group of experts to visit the basic units and enterprises for a series of investigations and obtained detailed firsthand data. We made in-depth analysis and research on present situation and future development of China’s wheat supply & demand, trade, market variations and further-processing industry in order to provide reports of valuable reference to enterprises, and government agencies, associations and research institutions at home and abroad.

 
TABLE OF CONTENTS
RESEARCH BACKGROUND I
CHAPTER ONE: WHEAT PRODUCTION IN CHINA 1
1 Status of China’s Wheat Production in World Market 1
2 Changes of China’s Wheat Production 2
2.1 Changes of Wheat Acreage 2
2.2 Changes of Wheat Yield 3
2.3 Changes of Wheat Output 4
2.4 Changes of Wheat’s Proportion in China’s Cereal Production 4
3 China’s Wheat Production Distribution and Comparison 5
4 China’s High Quality Special Wheat 9
4.1 Classification of China’s Wheat 9
4.2 Characteristics of High Quality Special Wheat 10
4.2.1 High Quality Strong Gluten Wheat 11
4.2.2 High Quality Medium-Strong Gluten Wheat 12
4.2.3 High Quality Weak Gluten Wheat 12
4.3 Arrangement of High Quality Wheat Producing Areas 13
4.4 Quality of China’s Major Wheat Varieties 14
4.4.1 Evaluation on China’s Wheat Quality 14
4.4.2 Changes of Wheat Quality from 2006 to 2009 15
4.4.2.1 Changes of Test Weight 15
4.4.2.2 Changes of Falling Number 16
4.4.2.3 Changes of Kernel Protein Content 16
4.4.2.4 Changes of Wet Gluten Content 17
4.4.2.5 Changes of Stability Time 18
4.4.2.6 Analysis with All Indexes 19
5 Major Factors that Influence Wheat Acreage in China 22
5.1 Influences of Wheat Planting Cost and Profit 22
5.1.1 Changes of Wheat Planting Cost in China 22
5.1.2 Output Value and Profit Changes of Wheat Production 22
5.1.3 Influence of Government Support on Farming Profit Rate 24
5.1.4 Changes of Wheat Farming Profit Rate and Acreage 25
5.2 Influence of Cultivated land Acreage Changes on Wheat Acreage 26
5.2.1 Changes of China’s Cultivated land Acreage 26
5.2.2 Relationship Between Wheat Acreage and Cultivated land Acreage 27
5.3 Water Resource Shortage Influences Wheat Production 28
CHAPTER TWO: WHEAT CONSUMPTION IN CHINA 30
1 Wheat Consumption for Food 30
1.1 Composition of Wheat Consumption for Food 31
1.2 Wheat Consumption for Staple Food by Households 31
1.3 Consumption by Eating Outside Home 33
2 Wheat Consumption for Seed 34
2.1 Changes of Wheat Consumption for Seed per Unit Area 34
2.2 Changes of Total Wheat Consumption for Seed 34
3 Wheat Consumption for Feed 35
4 Wheat for Industrial Consumption 36
5 Domestic Total Wheat Consumption 37
CHAPTER THREE: CHINA’S WHEAT IMPORT AND EXPORT 39
1 China’s Wheat Import and Export Policies 39
1.1 Import Policies 39
1.2 Export Policies 39
2 Overview of China’s Wheat Import and Export 39
3 Analysis on China’s Wheat Import 41
3.1 Changes of Wheat Import Price 41
3.2 Analysis on Wheat Import Original Countries 41
3.3 Wheat Importing Areas 42
3.4 Wheat Importing Enterprises 43
CHAPTER FOUR: ANALYSIS ON SUPPLY DEMAND OF WHEAT IN CHINA 45
CHAPTER FIVE: WHEAT CIRCULATION AND MARKET IN CHINA 47
1 Commercial Volume of Wheat 47
2 Lowest Procurement Price Policy for Wheat and Selling Progress 48
2.1 Lowest Procurement Price Policy for wheat 48
2.2 Changes of Lowest Procurement Price for Wheat and Procurement Progress 48
2.3 Procurement Volume of Wheat at Lowest Procurement Prices and Regional Layout 50
3 Sales Status of Wheat at Lowest Procurement Price 52
3.1 Selling Progress of Wheat at Lowest Procurement Price 53
3.2 Trend of Transaction Price and Transaction Rate of Wheat at Lowest Procurement Price 54
4 Trend of Wheat & Flour Price, and Analysis on Influencing Factors 56
4.1 Trend of Wheat Price 56
4.2 Wheat Supply-Demand and Wheat Price 57
4.3 CPI and Wheat Price 58
4.4 Trend of Flour and Wheat Price 59
CHAPTER SIX: CURRENT SITUATION AND DEVELOPMENT DIRECTION OF FLOUR INDUSTRY 60
1 Basic Policy and Regulation of Flour Industry 60
1.1 Policy for Entering Flour Industry 60
1.2 Influence of “Food Safety Law” on Flour Processing Industry 60
1.3 National and Regional Preferential Policies on Flour Processing Industry 61
2 Basic Situation of Flour Processing Industry from 2002 to 2009 62
2.1 Number of Scaled Flour Processing Enterprises 62
2.2 Production Capacity of Scaled Enterprises 62
2.3 Property Right Structure of Scaled Enterprises 64
2.4 Flour Output and Operating Rate of Scaled Enterprises 65
2.5 Flour Product Structure 67
2.6 Changes of Flour Industry Profit 67
2.7 Brand Building of China’s Flour Industry 68
3 Regional Distribution and Output Changes of Flour Processing Industry 70
3.1 Regional Distribution of Flour Processing Industry 70
3.2 Changes of China’s Flour Output 71
3.3 Changes of Flour Output in Main Producing Provinces 71
4 Trend Forecast on China’s Flour Industry 73
4.1 Forward Integration of Flour Industry 73
4.2 Backward Integration of Flour Industry 73
4.3 Horizontal Integration of Flour Industry 74
4.4 Forecast on China’s Future Flour Processing Industry 74
CHAPTER SEVEN: INFLUENTIAL DOMESTIC GROUPS IN FLOUR PROCESSING INDUSTRY 76
1 Hebei Wudeli Flour Group 76
1.1 Group Profile 76
1.2 Production Capacity Development 76
1.3 Sales Revenue 78
2 Wheat Processing Division of COFCO 78
2.1 Group Profile 78
2.2 Production Capacity Development 79
2.3 Sales Revenue 80
3 Flour Department of Jinmailang Food Co., Ltd 81
3.1 Group Profile 81
3.2 Production Capacity Development 81
3.3 Sales Revenue 82
4 Beijing Guchuan Food Co., Ltd 83
4.1 Group Profile 83
4.2 Production Capacity Development 83
4.3 Sales Revenue 84
5 Jiangsu Yinhe Flour Co., Ltd 85
5.1 Group Profile 85
5.2 Production Capacity Development and Sales Revenue 85
6 Jiangnan Flour Group Co., Ltd 85
7 Zhengzhou Jinyuan Flour Co., Ltd 86
7.1 Group Profile 86
7.2 Production Capacity Development 87
8 Shandong Luwang Group Co., Ltd 87
8.1 Group Profile 87
8.2 Production Capacity Development 88
8.3 Sales Revenue 88
9 Dongguan Suifeng Food Co., Ltd 89
9.1 Group Profile 89
9.2 Production Capacity Development 89
10 Henan Dacheng Grain and Oil Group Co., Ltd 90
10.1 Group Profile 90
10.2 Production Capacity Development 90
11 Hebei Jinshahe Flour Co., Ltd 91
12 Shandong Lisheng Group 91
13 Fada Flour Group Co., Ltd 92
13.1 Group Profile 92
13.2 Production Capacity Development 92
13.3 Sales Revenue 93
14 Anhui Wanwang Flour Group Co., Ltd 93
14.1 Group Profile 93
14.2 Production Capacity Development 94
14.3 Sales Revenue 94
15 Tianjin Lijin Cereals & Oil Joint-Stock Co., Ltd 94
15.1 Group Profile 94
15.2 Production Capacity Development 95
15.3 Sales Revenue 95
16 Renji Group Co., Ltd 96
17 Beidahuang Fengyuan Wheat Group Co., Ltd 96
18 Xinjiang Tianshan Flour Group Co., Ltd 97
CHAPTER EIGHT: FAMOUS FOREIGN-FUNDED FLOUR ENTERPRISES 98
1 Yihai Kerry Group 98
1.1 Group Profile 98
1.2 Production Capacity Development 98
2 Flour Busniss of Lam Soon (Hong Kong) Group 100
2.1 Group Profile 100
2.2 Production Capacity Development 101
3 Flour Business of Taiwan DaChan Group 101
3.1 Group Profile 101
3.2 Production Capacity Development 102
CHAPTER NINE: CHINA’S FLOUR IMPORT AND EXPORT 104
1 China’s Policies of Wheat Flour Import and Export 104
1.1 Import Policies 104
1.2 Export Policies 104
2 Overview of China’s Wheat Flour Import and Export 105
3 Analysis on China’s Wheat Flour Export 106
3.1 Changes of Wheat Flour Export Price 106
3.2 Analysis on Wheat Flour Export Destination Countries 107
3.3 Wheat Flour Exporting Provinces 108
3.4 Main Importers and Exporters of Wheat Flour 109
CHAPTER TEN: CURRENT STATUS OF WHEAT STARCH AND GLUTEN INDUSTRY 111
1 Situation of Wheat Starch and Gluten Industry 111
1.1 Wheat Gluten Industry Overview 111
1.2 Wheat Starch Industry Overview 112
2 Major Wheat Starch and Gluten Manufacturers 113
2.1 Henan Tianguan Enterprise Group Co., Ltd. 113
2.2 Henan Lotus Gourmet Powder Co., Ltd. 113
2.3 Anhui Ruifuxiang Food Co., Ltd. 113
2.4 Hebei Hongli Starch Group Co., Ltd. 114
2.5 Ruixiang Biological Technology Development Co., Ltd. 114
3 Import and Export Analysis of Wheat Starch and Gluten 114
3.1 Gluten Import and Export Analysis during 2000-2010 114
3.2 Wheat Starch Import and Export Analysis during 2000-2010 116
4 Wheat Germ Oil 117
4.1 Wheat Germ Oil Overview 117
4.2 Major Wheat Germ Oil Manufacturers 118
ATTACHED DATA 119

FIGURE CONTENTS
Map 1, Globle Wheat Production Distribution 1
Map 2, China’s Wheat Production Distribution 6
Map 3, Wheat Output Distribution by County (2008) 9
Map 4, China’s Wheat Ascendant Regions Distribution 14
Map 5, Wheat Processing Capacity Distribution by Province (2009) 70
Map 6, Distribution of Wudeli Flour Group, 2010 77
Map 7, Distribution of Wheat Processing Division of COFCO, 2010 79
Map 8, Distribution of Flour Department of Jinmailang Food Co., Ltd, 2010 82
Map 9, Distribution of Yihai Kerry Group, 2010 99
Map 10, Distribution of China’s Flour Enterprises in 2009 121

Fig. 1.1, Acreage Comparison in Main Wheat Producing Countries, 1961-2009 2
Fig. 1.2, Output Comparison in Main Wheat Producing Countries, 1961-2009 2
Fig. 1.3, Changes of China’s Wheat Acreage, 1950-2010 3
Fig. 1.4, Changes of China’s Wheat Yield, 1950-2010 3
Fig. 1.5, Changes of China’s Wheat Output, 1950-2010 4
Fig. 1.6, Changes of Wheat’s Proportion in China’s Cereal Acreage, 1991-2009 5
Fig. 1.7, Changes of Wheat’s Proportion in China’s Cereal Output, 1991-2009 5
Fig. 1.8, Acreage Comparison among the Three Major Producing Regions, 1990-2009 7
Fig. 1.9, Output Comparison among the Three Major Producing Regions, 1990-2009 7
Fig. 1.10, Yield Comparison among the Three Major Producing Regions, 1990-2009 8
Fig. 1.11, Proportion of Major Wheat Producing Province Versus Total Output, 1990-2009 8
Fig. 1.12, Test Weight Grade Distribution of Wheat Samples, 2006-2009 16
Fig. 1.13, Falling Number Distribution of Wheat Samples, 2006-2009 16
Fig. 1.14, Protein Content Distribution of Wheat Samples, 2006-2009 17
Fig. 1.15, Wet Gluten Content Distribution of Wheat Samples, 2006-2009 18
Fig. 1.16, Stability Time Distribution of Wheat Samples, 2006-2009 18
Fig. 1.17, Changes of Wheat Planting Cost in China, 1978-2009 22
Fig. 1.18, Output Value and Average Selling Price of China Wheat, 1978-2009 23
Fig. 1.19, Net Profit and Profit Rate of Wheat Production in China, 1978-2009 24
Fig. 1.20, Changes of Agricultural Subsidy Amount in China, 2004-2011 25
Fig. 1.21, Influence of Government Support on Wheat Farming Profit Rate 25
Fig. 1.22, Comparison of Wheat Farming Profit Rate and Acreage, 1978-2009 26
Fig. 1.23, Area of Cultivated Land at Year-end and Change Rate, 1949-2008 27
Fig. 1.24, Wheat Acreage and Propotion in Cultived Land Acreage, 1949-2008 28
Fig. 1.25, Comparison of Water Use for Agriculture and for Natonal Economy 29
Fig. 2.1, Changes of China’s Wheat Consumption for Food, 1991-2011 30
Fig. 2.2, China’s Wheat Consumption for Food Structure 31
Fig. 2.3, Per Capita Grain Consumption of Household in China, 1983-2009 32
Fig. 2.4, Changes of China’s Population, 1978-2009 32
Fig. 2.5, Wheat Consumption Ratio of Rural Households Vs. Urban Households, 1990-2007 33
Fig. 2.6, Wheat Consumption by Eating Outside Home, 1990-2007 33
Fig. 2.7, China’s Wheat Consumption for Seed, 1991-2010 35
Fig. 2.8, China’s Wheat Consumption for Feed, 191/92-200/11 36
Fig. 2.9, China’s Wheat for Industrial Consumption, 191/92-200/11 37
Fig. 2.10, China’s Wheat Consumption Structure 38
Fig. 3.1, Comparison of China’s Wheat Import and Export, 1983-2010 40
Fig. 3.2, Changes of Wheat Import Volume and Price, 2000-2010 41
Fig. 3.3, Proportion of Wheat Import by Country, 1992-2010 42
Fig. 3.4, Structure of Wheat Import by Country in 2010 42
Fig. 3.5, Proportion of Wheat Import by Province, 1994-2010 43
Fig. 4.1, Changes of China’s Wheat Stocks/Use Ratio, 1991/92-2010/11 46
Fig 5.1, Commercialization Rate of Wheat in China (1991-2009) 47
Fig 5.2, Changes of Lowest Procurement Price of Wheat (Grade III), 2006-2010 49
Fig 5.3, Purchase Process of Wheat at Lowest Procurement Price, 2007-2010 50
Fig 5.4, Purchase Volume Changes of Wheat at Lowest Procurement Price, 2006-2010 51
Fig 5.5, 2006-2009 Average Proportion of Major Producing Provinces Vs. Total Commercial Wheat 52
Fig 5.6, 2006-2010 Average Proportion of Major Provinces Vs. Total Procurement Volume of Wheat 52
Fig 5.7, Annual Sales Volume of Wheat at Lowest Procurement Price, 2007-2010 53
Fig 5.8, Comparison on Net Amount of Purchase and Sales, 2007-2010 54
Fig 5.9, Trend of Monthly Transaction Rate of Wheat Auction in China, 2006-2011 55
Fig 5.10, Trend of Transaction Volume and Average Price of Wheat Auction, 2006-2011 55
Fig 5.11, Comparison on Monthly Average Transaction Price and Market Price in China, 2006-2011 56
Fig 5.12, Trend of Average Wheat Wholesale Price in China, 2000-2010 57
Fig 5.13, Comparison of Average Wheat Price and Inventory Safety Coefficient, 2000-2010 58
Fig 5.14, Comparison of Average Wheat Price and CPI in China, 2000-2009 58
Fig 5.15, Comparison on Trend of Monthly Price of Wheat and Grade I Flour in China, 2000-2010 59
Fig. 6.1, Number and Total Production Capacity of Scaled Enterprises, 2002-2009 62
Fig. 6.2, Average Wheat Processing Capacity of Scaled Enterprises, 2002-2009 63
Fig. 6.3, Scale Structure of Scaled Enterprises, 2004-2008 64
Fig. 6.4, Number of Enterprises Above 1000 MT/Day Wheat Processing Capacity, 2004-2008 64
Fig. 6.5, Property Right Structure of Scaled Enterprises, 2004-2008 65
Fig. 6.6, Flour Production of Scaled Enterprises, 2002-2009 66
Fig. 6.7, Number of Flour Enterprises with Output of over 100,000 MT, 2003-2008 66
Fig. 6.8, Changes of China’s Flour Product Structure 67
Fig. 6.9, Flour Industry Benefit Index of Scaled Enterprises, 2002-2008 68
Fig. 6.10, Flour Industry Profit Index of Scaled Enterprises, 2002-2008 68
Fig. 6.11, Total Flour Output of Enterprises of Over 5 Million RMB Annual Incomes, 1999-2010 71
Fig. 6.12, Proportion of Major Flour Producing Province Versus Total Output, 1999-2010 72
Fig. 6.13, Flour Output by Province in 2010 72
Fig. 9.1, Comparison of Flour Import and Export, 1997-2010 106
Fig. 9.2, Changes of Wheat Flour Export Volume and Price, 2000-2010 106
Fig. 9.3, Proportion of Flour Export by Country, 1997-2010 107
Fig. 9.4, Structure of Flour Export by Country in 2010 107
Fig. 9.5, China’s Flour Export by Province, 2008-2010 108
Fig 10.1, Output of Key Wheat Starch Manufacturers in China, 2000-2005 112
Fig 10.2, Comparison on Import & Export Volume and Price of Wheat Gluten in China, 2000-2010 115
Fig 10.3, China’s Wheat Gluten Export by Province, 2010 115
Fig 10.4, China’s Wheat Gluten Export by Destination, 2000-2010 116
Fig 10.5, Comparison on Import & Export Volume and Price of Wheat Starch in China, 2000-2010 116
Fig 10.6, China’s Wheat Starch Export Volume by Destination, 2000-2010 117

TABLE CONTENTS
Table 1.1, China’s Standards of Wheat Quality by Grade (GB 1351—2008) 10
Table 1.2, China’s High Quality Wheat --Strong Gluten Wheat Index 12
Table 1.3, China’s High Quality Wheat --Weak Gluten Wheat Index 13
Table 1.4, Wheat Sampling Number and Variety Number, 2006-2009 15
Table 1.5, Samples Met Standard of Grade 2 Strong Guten Wheat in 2009 19
Table 1.6, Comparison of Average Indexes of Strong Gluten Wheat, 2004-2009 20
Table 1.7, Samples Met Standard of Medium-Strong Guten Wheat in 2009 20
Table 1.8, Comparison of Average Indexes of Medium-Strong Gluten Wheat, 2004-2009 21
Table 1.9, Samples Met Standard of Weak Guten Wheat in 2009 21
Table 1.10, Comparison of Average Indexes of Weak Gluten Wheat, 2007 vs. 2009 21
Table 3.1, China’s Wheat Import Tariff Quota Quantity and Tariff Rate, 2002-2010 39
Table 3.2, Main Importers of Wheat in China, 2003-2008 44
Table 4.1, Balance of China’s Wheat Supply and Demand, 2005/06~2010/11 46
Table 5.1, Lowest Procurement Price of Wheat (Standard Grade III), 2006-2010 49
Table 6.1, Flour Brands Awarded “Chinese Name-Brand Product” in 2004 & 2007 69
Table 6.2, Dried Noodle Brands Awarded “Chinese Name-Brand Product” in 2007 70
Table 7.1, Wheat Processing Capacity Distribution of Wudeli Flour Group in 2011 77
Table 7.2, Wheat Processing Capacity Changes of Wudeli Flour Group, 2004-2010 77
Table 7.3, Sales Revenue of Wudeli Flour Group, 2004-2008 78
Table 7.4, Wheat Processing Capacity Distribution of Wheat Processing Division of COFCO in 2010 79
Table 7.5, Wheat Processing Capacity Changes of Wheat Processing Division of COFCO, 2004-2010 80
Table 7.6, Sales Volume and Sales Revenue of Wheat Processing Division of COFCO, 2004-2009 80
Table 7.7, Wheat Processing Capacity Distribution of Flour Department of Jinmailang in 2010 81
Table 7.8, Production Capacity Changes of Flour Department of Jinmailang, 2001-2010 82
Table 7.9, Sales Revenue of Flour Department of Jinmailang, 2004-2007 82
Table 7.10, Wheat Processing Capacity Distribution of Guchuan in 2010 84
Table 7.11, Production CapacityChanges of Guchuan, 2004-2010 84
Table 7.12, Sales Volume and Sales Revenue of Guchuan, 2001-2009 84
Table 7.13, Production Capacity and Sales Revenue of Jiangsu Yinhe Flour, 2004-2010 85
Table 7.14, Wheat Processing Capacity Distribution of Zhengzhou Jinyuan Flour in 2010 87
Table 7.15, Wheat Processing Capacity Changes of Zhengzhou Jinyuan Flour, 2000-2010 87
Table 7.16, Wheat Processing Capacity Distribution of Shandong Luwang Group in 2010 88
Table 7.17, Wheat Processing Capacity Changes of Luwang Group, 2003-2010 88
Table 7.18, Sales Revenue of Luwang Group, 2004-2008 89
Table 7.19, Wheat Processing Capacity Distribution of Suifeng Food in 2010 89
Table 7.20, Wheat Processing Capacity Changes fo Suifeng Food, 2003-2010 90
Table 7.21, Wheat Processing Capacity Distribution of Dacheng Grain and Oil Group in 2010 91
Table 7.22, Wheat Processing Capacity Distribution of Shandong Lisheng Group in 2010 91
Table 7.23, Wheat Processing Capacity Distribution of Fada Flour Group in 2010 93
Table 7.24, Production CapacityChanges of Fada Flour Group, 2004-2010 93
Table 7.25, Sales Revenue of Fada Flour Group, 2004-2009 93
Table 7.26, Wheat Processing Capacity Distribution of Anhui Wanwang Flour Group in 2010 94
Table 7.27, Production Capacity Changes of Wanwang Flour Group, 2004-2010 94
Table 7.28, Sales Revenue of Wanwang Flour Group, 2004-2009 94
Table 7.29, Sales Volume and Profit of Tianjin Lijin Cereals & Oil, 2004- 2008 95
Table 7.30, Wheat Processing Capacity Distribution of Renji Group in 2010 96
Table 8.1, Wheat Processing Capacity Distribution of Yihai Kerry Group in 2010 99
Table 8.2, Wheat Processing Capacity Distribution of Flour Busniss of Lam Soon Group in 2010 101
Table 8.3, Wheat Processing Capacity Distribution of Flour Business of Taiwan Dachan Group in 2010 103
Table 9.1, China’s Flour Import Tariff Rate, 2002-2010 104
Table 9.2, Flour Export Quota to Hong Kong & Macau, First Half of 2011 & 2010 104
Table 9.3, China’s Flour Export Volume by Country, 1997-2010 108
Table 9.4, Main Flour Importers and Import Volume, 2007-2008 109
Table 9.5, Main Flour Exporters and Export Volume, 2003-2008 110
Table 10.1, Estimate of Wheat Gluten Consumption in Various Uses 111
Table 10.2, Production Capacity of Top 5 Wheat Gluten Manufacturers 112
Attached Table 1, China’s Wheat Output by Province, 2000- 2009 119
Attached Table 2, China’s Wheat Acreage by Province, 2000- 2009 120