ChinaNews - Giract · interesting combination of ‗new‘ ‗and ‗traditional‘. This...

ChinaNews

FOOD & FOOD INGREDIENTS REVIEW

Jan/Feb 2011

TABLE OF CONTENTS

June/July 2010 © GIRACT 2010

p.1 Editorial

Food Industry News

p.3 Biscuit output

Potato price threatens starch production

Cereals output 2010 – estimates

p.4 Supermarkets urged to buy from food

producers

Wealthy Chinese are pursuing their own

food safety

p.6 Mergers in the brewing industry

Government to invest RMB 100 bio in

farmland

p.7 Sweet times ahead for China's food

industry

p.8 Milk powder exports

p.9 Food becomes a hot issue in China

p.10 Longkou glass noodles recognised by EU

p.11 Growing appetite for GM foods p.13 Bakery business booming

Wine consumption 2014

Top brewing regions

Staple imports 2010

p.14 Eel exports

Taiwan CAS food products allowed in

China market: official

Sugar imports

Food statistics

Canned food update

Canned food exports

Functional & Organic Foods

p.15 Slow & steady

p.17 Organic local food movement expands in

China

p.19 GLG Life Tech announces Joint Venture

in China

p.20 China Nutrifruit announces delay in fruit

and vegetable powder production

p.21 Institute for healthy baking

p.22 Decernis Agreement with China National

Institute of Nutrition and Food Safety

Functional & Organic Foods (Contd)

p.22 Organic ham

State recognition for Wanglaoji

Organic coffee from Hainan

Ingredient News

p.22 Novozymes adds granulation capacity in

Tianjin

p.23 IFF to invest over USD 100 mio in China

& Singapore Solae opens new Asia Food Application

Centre in Shanghai

p.24 Saccharin 2010

Regional News

Hebei

p.24 Hebei shuts down wineries for adulterated

wines

Shaanxi

p.25 Shaanxi as fruit juice concentrate centre

Yunnan

p.25 Yunnan coffee province

Xinjiang

p.25 Fish exports from Xinjiang

Hunan

p.26 Hunan tea exports

Shangdong

p.26 Shandong sells more farm produce abroad

Guangdong

p.26 Guangdong dairy imports

(Table of Contents continued on next page)

ChinaNews

FOOD & FOOD INGREDIENTS REVIEW

Jan/Feb 2011

TABLE OF CONTENTS

June/July 2010 © GIRACT 2010

Company News

p.27 From restaurant to manufacturer

South Beauty works for listing to fuel

expansion

p.28 Yum will raise prices to cover higher costs

p.29 Yum says China to be top profit driver

this year

p.30 Bright nearing deal to purchase GNC

Holdings

p.31 Bright Food has best bid for Yoplait stake-

report

Milk + liquor

p.32 China Resources acquires Henan‘s second

largest brewer

p.33 Tsingtao to acquire rival brewer

p.34 More beer from Yunnan

Record turnover for Wuliangye

Wine in China: premium at the pump

p.35 Meat districentre in Sichuan

COFCO starts meat retail business

Sino-Japanese coffee

Shuanghui beefs up with overall industry

chain

p.36 Lulu Beverages expands in Henan

Campbell Soup Company and Swire

Pacific form joint venture in China

New plant for Wadakan

R&D and Technology News

p.37 Seaweed transplantation in Weihai

New protein beverage launched p.38 Pickled lactobacillus

Compliance automation

Upcoming events

p.39 Upcoming events

Jan/Feb 2011 © GIRACT 2011 Page | 1

ChinaNews FOOD & FOOD INGREDIENTS REVIEW

Editorial

The first issue of the year is always a challenge. It covers a period comprising both the international

and the Chinese New Year celebrations. Although both are feasts of eating, drinking and being merry,

they are more about consumption than about production. However, the relatively lower volume of the

news is completely compensated by its quality this year. It is obvious that the Chinese food industry is

gradually ascending from the misery of the various food safety incidents of the past couple of years.

One of the aspects that seems to signal the increasing faith in the Chinese food and beverage industry

is the high number of news items involving foreign investors in this issue. The Ingredients section is

particularly striking in this respect - apart from some statistics about saccharin, all news items that

passed our selection criteria introduce regional expansion by well established multinationals.

Novozymes, IFF and Solae are by no means adventurous newcomers in their respective businesses.

Another common trait in these three news items is that the decision to expand their presence in China

is explained by leading managers; yet another token of the importance of the Chinese market for these

companies. Also in other sections, we can find a number of items reporting acquisitions of Chinese

enterprises by foreign investors, new foreign wholly owned companies, R&D activities being partly

moved to China, etc.

Movements in the opposite direction, i.e. Chinese enterprises developing into multinationals, are also

continuing. Readers may already have noticed the attempts of dairy processor Bright to acquire

production facilities abroad. These have so far not been very successful, but in this issue we can again

read about Bright‘s overseas endeavours. Attempts to acquire sugar production in Australia failed last

year, but Bright is now reported to be ‗close to a deal with a US based vitamin producer‘. Rumours

that Bright is on speaking terms to buy Yoplait have been denied by the company, but where there is

smoke there is fire. Simultaneously, Bright is reported to be busy on the Chinese market as well.

The company has bought a large stake in a distiller; not the most logical partner of dairy. Although

Bright has never stated so verbatim, it looks as if the company‘s objective is to become a large

generalist food conglomerate, something like COFCO. However, where COFCO‘s domestic and

overseas activities show clear objectives in terms of product groups, Bright's endeavour so far defy any

attempt of interpretation. You will be further informed by staying logged in to our pages.

Another section of more than usual interest is that on R&D and new technology. We have introduced

quite a number of novel foods since our first issue, some of which were selected more as a curiosity, to

provide insight to the drivers behind Chinese food innovation, like ‗sober up yogurt‘. Unfortunately

very few of those have actually ended up as commercial products on the shelves of supermarkets. We

renamed this section from ‗New Products & Technologies‘ to ‗R&D and Technology‘ last year; this

already marked the gradual maturing of Chinese food R&D.

This first issue of 2011 seems to indicate that this maturation process has reached the next level. We

have not seen ‗funny foods‘ for some time, and now we can report on technologies that can have

repercussions far beyond China‘s border. And here as well, we can observe the opposite

direction-foreign compliance technology will be employed by China‘s highest food safety authority,

while the supplier of the technology will make an effort to make it more applicable to the Chinese

industry.



Editorial

China is now officially the world‘s second economy. 2011 may witness the country becoming a mature

party in the global food and beverage industry. If that is true, then, by the nation‘s sheer size, it will

immediately be the leading party. The international companies reported in this issue will then be in

prime position to cash in on that new reality.

The Shuxin (Vegetable New) line of vegetable based sports drinks, an example of how novel foods are

advertised in China. The text on the top right hand side states that these are the designated drinks of the

11th

National Games. The large characters in the right centre read ‗guonei shouchuang‘ or ‗domestic

first creation‘, a standard phrase referring to the first launch of a new product. The smaller red

characters specify that these are ‗Shuxin fruit juice Chinese Medicine Beverages‘. The latter is an

interesting combination of ‗new‘ ‗and ‗traditional‘. This advertisement as a whole is a fine ensemble of

new and traditional symbols.

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Food Industry News

Biscuit output

China produced 3.65 mio t of biscuits during the

first 10 months of 2010. The following table

shows a regional breakdown of this volume.

Region Output (mio t)

Central 1.362

South 0.866

East 0.827

Southeast 0.279

North 0.231

Northeast 0.072

Northwest 0.016

(tjkx 30/11/2010)

The Central region includes Henan, China’s main

wheat producing region. The South and East are

centred around the Pearl River and Yangtze Delta

regions. China is a biscuit country. While biscuits

are eaten all around the world as a favourite

snack food, in China biscuits are often discussed

as if they were a specific food group.

The illustration shows a typical Chinese

functional type of biscuits: breakfast biscuits.

Chinese love to eat biscuits while travelling, in

trains, while sightseeing, in waiting rooms of

airports and railroad stations, etc.; also during

business trips. As China is a vast country,

hundreds of thousands of people are on the move

in China at any given moment. Shops and

minimarkets at railroad stations, airports and

near interregional bus terminals teem with all

kinds of biscuits.

Potato price threatens starch production

The price of potatoes from Ningxia [1] has been

rising sharply during 2010. This is partly due to

adverse weather conditions in the other traditional

potato regions like Heilongjiang, Gansu and

Guizhou.

While this is welcomed by the farmers, it has

already forced more than 200 local producers of

potato starch to halt production. One plant with a

capacity of 5 ktpa has only operated 20 days in

2010. (hexun 3/12/2010)

The part of the story not told by this news item is

that many relatively small starch plants were

erected in this region, when the industry was

deemed to be a big money maker. This is one of

the less attractive effects of Chinese culture (short

term behaviour).

Cereals output 2010 – estimates

The State Statistical Bureau estimates China‘s

total grain output of 2010 at 546.41 mio t, an

increase of 2.9% compared to 2009. (cfin

3/12/2010)



Food Industry News

Supermarkets urged to buy from food producers

China is encouraging more supermarkets to buy

directly from food producers so as to cut out the

middlemen and benefit consumers and growers, a

government official said Saturday. The

government wants supermarkets to buy 30%,

compared with the current 15%, of their Chinese

agricultural products directly from producers

during the 2011-15 period, said Chang Xiaocun,

Director of the Department of Market System

Development under the Ministry of Commerce.

If this target is met, supermarkets would save

about 15% on their purchase cost. It was

envisaged that supermarkets would pass the

savings on to benefit both growers and consumers

alike, Chang said. The Ministry would strengthen

infrastructure construction, including the founding

of large wholesale markets for agricultural

products, improving trade, storage, and processing

facilities, and the construction of frozen facilities.

It would also help facilitate communication

between producers and sellers by establishing an

online trading system for them, he added.

(cd 5/12/2010)

This call from the Ministry of Commerce makes a

lot of sense. In spite of the dramatic developments

in the supermarket sector during the past decade,

open markets remain popular places to buy fresh

products. Several such markets can be found in

the suburbs of all Chinese cities, including the

most affluent like Beijing and Shanghai.

Wealthy Chinese are pursuing their own food safety

Thinking about China growing vegetables to

become more self-sufficient has become popular

in China recently, but the new growers have not

been farmers. Instead, they have been wealthy

people and those with social status—the kind of

people that own villas.

Advertising billboards such as ―buy a house and

get free farm land‖ have appeared in Chongqing,

Changsha, Shenyang, Wuhan, Zhuhai and more.

Real estate agents have taken inspiration from the

phenomenon of ―vegetable self-supply bases,‖

which in the past two years has been spreading

widely across China.

Who has helped to popularize and promulgate

these vegetable self-supply bases? Local

institutions with economic strength, such as

provincial government departments, large state-

owned enterprises, financial institutions, as well

as some philanthropic private enterprises and

publicly listed companies. They spend large sums

to rent land plots of various sizes in the suburbs,

transforming them into self-supply food bases.

One would be mistaken to think that these

institutions do this to encourage their staff go to

the suburbs to plant vegetables as a casual

weekend form of recreation. An article entitled

―Some institutions and state-owned enterprises

are operating vegetable self-supply bases out of

worry for food safety‖ was published on People‘s

Daily Online.

It made it clear that Chinese people are deeply

worried about food safety, as contaminated and

poisonous food is rampant in China today. In fact,

government organizations and state-owned

enterprises are using public funds to secure food

safety for their own sectors. In recent years, the

Chinese have fought hard but ineffectively against

poor food safety standards.

(Continued on next page)



Food Industry News

Wealthy Chinese are pursuing their own food safety (Contd)

There are simply too many tainted foods, from

raw food products to cooking oil and food

utensils. Waste oil, toxic chopsticks and toxic

lunch boxes can still be cleaned up, but there are

three sources of poisoning which are the most

difficult to handle.

The first is from the adoption by farmers of ―high

tech‖ methods in growing crops. There is

widespread application of pesticides and

fertilizers in the conventional agricultural

industry, and antibiotics and hormones are widely

used in raising livestock. Freshwater and coastal

aquatic products have been contaminated. I had

even heard when I was living in China that

farmers grow crops or raise livestock for their

own consumption, separately from the products

they sell, to keep from poisoning themselves.

The second source comes from food processing.

To cut costs, companies use large quantities of

food additives and chemicals. The addition of

melamine to milk powder to give the appearance

of enhanced protein content is just one example.

The third source is rooted in China‘s seriously

polluted environment. According to an analysis

by China‘s Ministry of Environmental Protection,

the area of farmland polluted by cadmium,

arsenic, chromium and lead has reached

20 mio ha (approximately 49 mio acres)—about

one-fifth of China‘s total. Food poisoned by

heavy metal is estimated at 12 mio t each year.

(These foods are all consumed, with a small

portion even exported.)

The rampant flooding of tainted food in the

market is a result of manufacturers completely

disregarding ethical responsibilities, the

government abandoning its role as regulator, and

an absence of trust in the market. The high degree

of corruption in the government deserves

particular condemnation.

(Continued in next column)


Because supervision departments compete among

themselves to use their power to seek profit, they

have turned safety inspection into a fight for profit

and distribution of benefits, having eventually

reached such a pitiful state of incompetency that it

is said that ―several departments cannot even

manage a pig, and dozens of departments cannot

even manage food on a dining table.‖

Faced with a flood of toxic food, the regime‘s

inept quality and safety watchdog has to resort to

lies to deceive people, claiming that ―China has a

higher than 90% food qualification rate.‖

Government institutions that have spent a large

amount of money to operate vegetable self-supply

bases got their inspiration from the ―special food

supply bases for State Council and State

organizations.‖ After the Sanlu contaminated milk

powder incident was exposed in 2008, a message

was found on the website of a company within

China which said that in April 2005, the Special

Food Supply Centre for State Council and State

Organizations was officially established.

In an authorization ceremony of special food

provisions for government organizations held in

Jinan City, Shandong Province on August 18 of

the same year, its director Zhu Yonglan disclosed

that the centre not only selects, evaluates and

authorizes the production of designated special

products for veteran cadres of 94 ministries and

commissions, but also provides high quality

organic food products to government officials

from its supply bases that span over 13 provinces.

The supply bases received support from the State

Council Logistics Base, Central Security Bureau

farms, and the Armed Police Frontier Logistics

Base. After this message was circulated widely

via the Internet, some Chinese citizens began to

realize that the food their central government

leaders eat came from different sources than their

own. Is it no wonder then that those leaders are

not worried about food safety, and are not paying

attention to its supervision?




Food Industry News


As this message was obviously too detrimental to

the ―glorious image‖ of the Party and the

government, the company website that carried the

message deleted it soon afterwards. The Chinese

regime also came out to ―refute the rumour.‖

On September 25, 2008, an official from the State

Council, in an interview with China News Service

online, said that the State Council Veteran Cadre

Activities Centre does not have the so-called

―special food supply centre,‖ and that the online

information was purely a fabricated rumour.

However, as provincial governments, large,

state-owned companies and financial institutions

continued to establish ―vegetable self-supply

bases,‖ it became apparent that the ―rumour

denial‖ scheme had not been effective. Instead,

people came to reason that it is better to be safe

than sorry, so some work units followed suit to try

and protect food safety for their own staff.

Since government is supported by the taxpayers,

its first responsibility should be to provide proper

public services for the citizenry. Establishing a

safe and reliable living environment for all should

be the fundamental responsibility of government.

The food safety issue in China involves the

government, the market, and the manufacturers.

While Rome was not built in a day, what the

regime should do is improve its supervision

mechanism, strengthen accountability, and

reconstruct the relationship between the market

and the enterprise, rather than using its economic

strength to confiscate land for planting vegetables,

or raising livestock to guarantee food safety for

government officials alone. (epochtimes

8/12/2010)

The source of this item is an interesting example

of a semi-official publication. It is supported by

the central government, but reflects what is

currently on the minds of the emerging Chinese

middle class.

Mergers in the brewing industry

According to a recent survey, 80 mergers have

taken place in the Chinese brewing industry

during the past 10 years. This has led to sharp

concentration in the industry. The 4 top brewers,

China Resources, Qingdao, Yanjing and Inbev,

now together account for 58% of the Chinese

brewing industry. This trend is expected to

continue. (hexun 16/12/2010)

Another news item reports that these 4 account

for 70% of the total profit generated by the

Chinese brewing industry (tjkx 17/12/2010).

While this trend may seem quite inevitable from a

business point of view, the local industry in many

region is regarding it with apprehension. For

example, Henan province has recently become the

battlefield of these leading brewers, competing to

take over the local breweries. Regional

chauvinism is strong in China and events like this

are occasions for fierce protests by local

governments. Henan, China’s top grain province,

was/is the home region of a few promising

brewers, but these are unable to compete with the

deep pockets of companies like Qingdao and

Yanjing (tjkx 20/12/2010). China produced

423 989 mio hls of beer in the first 11 months of

2010 (cfin 21/12/2010)

Government to invest RMB 100 bio in farmland

The government plans to invest more than

RMB 100 bio over the next five years to ensure

enough farmland to guarantee China's food

security, the Ministry of Land and Resources said

over the weekend.

The investment will improve about 4 mio hectares

of land and replenish an additional

670 000 hectares of arable land in major grain

producing areas. These are Hebei, Jilin,

Heilongjiang, Jiangsu, Anhui, Jiangxi, Shandong

and Hubei provinces, and the Inner Mongolia and

Guangxi Zhuang autonomous regions.




Food Industry News

Government to invest RMB 100 bio in farmland (Contd) The plan will add 10 mio t to China's annual grain

capacity, the ministry, which supervises land use,

said. "We need to protect the arable land base for

grain security while also providing land for

economic development," Minister of Land and

Resources Xu Shaoshi said.

"It is a dilemma. To solve the problem, we need to

use land more economically, reduce farmland

seizures for industrial and residential use, and try

all means available to increase our country's

arable land area."

China began improving its farmland's per-unit

grain production capacity by upgrading the

ecological environment for cultivation beginning

in 2008. The move was made to alleviate food

security concerns over shrinking arable land amid

the country's rapid economic growth and

urbanization.

The government has improved 4 mio hectares of

farmland and turned another 1.33 mio hectares of

reserve land into arable farmland, boosting its

cultivated land productivity by about 10 to 20%,

the Ministry said.

China's grain output rose 2.9% year-on-year in

2010 to 546.41 mio t, marking the seventh

consecutive year of growth, preliminary figures

released by the National Bureau of Statistics

earlier this month said.

The country's grain production area also expanded

0.8% from a year earlier to 109.87 mio hectares,

the bureau said. Food security remains a major

government concern as the country's arable land

continues to shrink amid rapid economic growth

and urbanization while its population keeps

expanding.


Government to invest RMB 100 bio in farmland (Contd)

Provincial governments have been urged to

conserve 120 mio hectares of arable land

nationwide by 2020, because farmland shrinkage

is threatening grain production.

"Our country must hold tightly to the bottom line

of 120 mio hectares of arable land," Xu said.

"This is the lifeline of food security for our

1.3 bio people." (cd 20/12/2010)

Sweet times ahead for China's food industry

Robert P. Aspell, president of Cargill Investment

(China) Ltd, talks with China Daily reporter

Zhong Nan about his views on Chinese

agriculture, food consumption and his company's

role in China.

Q: Food consumption in China has been growing

quickly in the past few years. How do you see

consumption developing over the coming years?

A: Food consumption is a reflection of economic

success. Food consumption is rising. The types of

foods people eat are diversifying. Foods are

becoming more sophisticated and they need to be

more convenient, so the whole agricultural

industry has dramatically transformed in China.

Q: What do you think holds the most potential?

A: The most obvious is the modernization of

livestock and the food supply chain. That is a big

area and there are lots of investments going on

there. Some Chinese companies are rising to

become the top in the world. Processed food such

as canned food, related with cooking and

restaurants, has grown fast.

The demand for milk, yogurt, juice and soft drinks

will provide all sorts of opportunities for food and

ingredient businesses. We have seen lots of

potential in this sector.




Food Industry News

Sweet times ahead for China's food industry (Contd)

Q: What is your view of China's transformation

during the process of agricultural modernization?

A: I think it is a combination of growth and

demand that is linked to income and urbanization.

Those two factors came together to create the

sheer size of the market. So it has attracted a lot of

investment.

In term of agricultural modernization, we see

China's is ongoing, especially in the meat

production chain. Meat is being produced

increasingly through modern ways of production,

away from feeding animals in the backyard to a

modern feeding system.

Q: What is Cargill's role in China?

A: We try to rely on our strategies with our key

stakeholders. Oil seeds and vegetable oil are very

important and the overriding theme is food

security. China's fast-growing demand for food

needs a certain percentage of products from

abroad.

We see our role in that; we sell our products to

Chinese customers, importers and food

distributors in China. Our plan will continue to

participate, work and invest, not only in

processing capabilities. We want to bring our best

practices, and the latest green and new

technologies to China.

To minimize food disruption, we need to be able

to count on a very efficient supply chain. Cargill,

as a global player in agriculture and food, is very

committed to bringing in the needs of China from

different countries. China needs participants that

are committed to the industry. This is a clear

Cargill view, to take a long-term approach.


Sweet times ahead for China's food industry (Contd)

Q: What is the biggest obstacle for the

development of Chinese agriculture?

A: The great challenge is keeping supply and

demand in balance. I am very confident that the

balance of supply and demand will be met in

China in the future. Technology and education are

two key things.

You have to keep in focus; you have to commit

and deploy to fight the challenges. It is a huge

effort that needs the joint efforts of governments,

farmers and State-owned and private companies.

Q: What's your comment on the future of the

Chinese market?

A: We are great believers in China; our

relationship with China goes back 30 years.

Therefore, we believe the Chinese economy will

grow quickly and continue to do very well.

Per capita income and the number of middle class

citizens will continue to soar. These factors make

us quite confident that we have a role to play in

bringing better, safer and healthier foods to our

customers. (cd 12/12/2010)

This is yet another item that is not only interesting

for its contents alone, but also its contents in

relation to its source. The China Daily is the most

official English language news outlet in China

and a person like Mr. Aspell knows how to make

full use of this communication media.

Milk powder exports

According to the China Customs, China has

exported 2711 t of milk powder during the first

10 months of 2010, down 70.5%. (fam365

20/12/2010)



Food Industry News

Food becomes a hot issue in China

Although just 200 meters away from the

1000 sq.m. Carrefour supermarket in Beijing's

West Dawang Street, the small department store

Lohao City is busily selling imported and locally

grown organic staple foods.

"People who live nearby like our products

because they are more nutritious and healthy than

the big supermarket's," salesman Chen Xiao

claimed. "Our millet rice noodle contains more

vitamin B and D and is very popular, as are our

purple potatoes, which have a high content of

selenium, thought to be beneficial to the immune

system."

As the Chinese become richer, people have begun

to pay more attention to the quality and nutritional

value of food. Restaurants in Beijing are selling

autumn and winter specialty dishes such as

bamboo fungus and other edible wild plants

which contain a variety of microelements and

amino acids. However, the lack of a national

standard for food additive use has caused plenty

of debate. Popular trans-fatty acids and ferriferous

soybean sauce are said by some experts to be

possibly damaging to the heart.

During a Nutrition Improvement and

Administrative Regulation conference held in late

November, the Ministry of Health said China will

unveil a new policy relating to the nation's future

nutrition plans - a blueprint of the nation's

nutrition standards for the next five years - as part

of the central government's 12th Five-Year Plan

(2011-15). (Continued in next column)

Food becomes a hot issue in China (Contd)

According to Yang Xiaoguang, the director of the

newly-founded working committee, which is

preparing the policy, the food additives and ways

to test for them will be based on a clear standard

soon.

According to the Ministry's previous documents,

the government's nutrition guidance work

includes providing food evaluations, giving

dietary suggestions and developing guidelines for

labelling food additives.

"The new policy will benefit companies that make

additives and boost the market for dieticians," said

Tang Qingshun, chairman of the Beijing Dining

Industry Association. China lags far behind Japan,

where there is a dietician for every 300 members

of the population, but things are changing.

Data from the Chinese Nutrition Society shows

there are less than 4 000 dieticians working in the

nutrition departments of hospitals around the

country. However, one of the many dietician

training companies in Beijing said more than 500

of its students graduate every year.

"Only a small part of our graduates work for the

hospitals and State-owned companies such as

COFCO Group's research department. More of

them are providing personal services to families

and rich individuals," said Deng Hongmei, who is

in charge of recruitment at Peking University

Health Science Centre‘s dietician training

programme. "The demand for our students is very

strong, especially for one-on-one consultation

work and giving lectures on nutrition to food

companies," she added.

Beijing Evening Post reported the hiring of

dieticians is becoming more popular in China.

However, people pay for a dietician only after

hiring a personal physician and personal

bodybuilding coach. (Continued on next page)



Food Industry News

Food becomes a hot issue in China (Contd)

Along with personal fashion helpers, personal

dieticians have been acknowledged as a new

profession by the Ministry of Human Resources

and Social Security on its website.

"Like all professions, dieticians have different

abilities. The average pay for a high-level

dietician working for restaurants in Beijing is

about RMB 5000-6000 a month," Deng said.

Experienced family nutrition consultants are

currently being paid around RMB 3000-4000 to

give a full dietary plan and recommended eating

habits. The cheapest price for hiring a junior

personal dietician is about RMB 1000 a month.

"Haidian district of Beijing needs at least 20 000

dieticians," Deng said. "The market is far below

saturation point, considering every neighborhood

may need a dietician in the future," she said.

As early as 2005, the Ministry of Health

formulated a national nutrition draft resolution

called the Nutrition Guideline of the People's

Republic of China, which stipulated that key

hospitals, companies and schools with more than

100 people must have dieticians. "We see the

coming Five-Year Plan as a bullish sign for all

nutrition industry companies," said Yao Jie, a

food industry analyst from Everbright Securities.

China's nutriment seller Guangdong By-Health

Biotechnology Co Ltd broke the record of

price-per-share and price/earnings ratio during its

initial public offering on the Growth Enterprise

Board earlier this month. It said its earning

expectations for 2010 were up 88% year-on-year,

with nutrition being a hot issue for the market

now. According to data from the China

Healthcare Association, China's nutriment market

size will be valued at more than RMB 16 bio, up

30%, in the next two years. (cd 27/12/2010)

In fact, food has always been a hot issue in China,

since the beginning of historical records.

Longkou glass noodles recognised by EU

Longkou (Shandong) [2] glass noodles (fensi)

have been officially registered by the EU as a

protected designation of origin. A number of

companies outside the region, and even outside

China, have tried to launch glass noodles

designated as ‗Longkou glass noodles‘. Longkou

glass noodles were awarded DOC registration in

China in 2007, and now are also recognised as

such by the EU.

Longkou glass noodles are dry, stringy noodles

made from green beans and peas, characterized by

a high starch and high flexibility. Water on the

Shandong peninsula is low in chloride and

sulphate ions and the pH is within 6.9-7.4, which

allows the starch from green beans and peas to be

extracted by acid digestion.

The most striking feature of this pasta is

resistance to boiling. In accordance with the

specifications drawn up by the producers, no more

than 10% of the strands of Longkou glass noodles

are broken after 45-minutes of boiling.

Only glass noodles produced in Longkou,

Zhaoyuan, Penglai, Laiyang and Laizhou can be

marketed as Longkou glass noodles. (rolnicy

29/11/2010; shuimu 2/1/2011)



Food Industry News

Growing appetite for GM foods

Research on genetically modified organisms has

come a long way in China. Even though the study

and development of biotechnology in China is

relatively new, China's genetically modified

technologies are not far from being industry

leaders.

The economic and social benefits are the main

drivers of the industry. The industry will provide

new ways to solve China's food security problems

and development of genes transfer foods will

improve food quality and help the country's

supply catch up with demand, bringing food

prices down to more affordable levels.

Genetically modified plants will also reduce the

amount of agricultural land required, protect

natural resources and provide more affordable

plant-based bio-fuels.

With its huge potential, the genetically modified

food industry is one of the most important drivers

of sustainable development. I think that is the

reason why genetically modified plants are being

increasingly accepted and supported by most

countries.

Since the initial efforts to produce commercially

viable genetically modified technology in 1996,

the industry has leveraged economic benefits of

more than USD 50 bio. The latest evaluation

research on the influence of genetically modified

crops shows that those benefits mainly come from

the reduction in growing costs and increased grain

production.

Another advantage is the saving in land

requirements. If genetically modified crops were

not planted, more than 626 bio sq.m of land

would be needed for planting. Therefore, gene

transfer technologies are an important way to

reduce the land needed for agriculture.


Growing appetite for GM foods (Contd)

China's great potential in genetically modified

crop development lies in three areas:

Firstly, ever since China began its rapid economic

growth 30 years ago, it has faced apocalyptic

warnings that its huge population and rising

wealth would lead to food shortages.

Some experts predict that in the next 40 years, the

world population will grow by 50%. The pressure

of the growing global population means it was

inevitable that genetically modified technology

would be used to improve the plants species used

by humans.

Global warming, lack of water resources and

desertification are also increasingly threatening

food security. Hunger and malnutrition are

threatening the world's poorest people. At the

same time, with industrialization and

urbanization, the amount of planted land we can

use is decreasing. Traditional agricultural

technology cannot solve these problems. Only the

new biotechnologies combined with traditional

agricultural techniques can overcome these

challenges.

China has the largest population in the world.

However, the grain yields in China have not been

increasing to match the growing population. The

country's top priority is to find a solution to the

problem of feeding its enormous population. Only

technological innovation and application can help

ease the demand on resources, reduce

environmental pollution, safeguard the nation's

food security and increase the supply of

agricultural products.

China has made major achievements in

discovering important genes and cultivating new

genetically modified agricultural products. There

is a huge potential for the industry in the future.




Food Industry News

Growing appetite for GM foods (Contd) Secondly, China is one of the countries at the

forefront of research and development in

genetically modified products.

Since 1997, when the Chinese government

approved the research and development of

commercial genetically modified cotton for the

first time, insect-resistant, transgenic cotton plants

have been planted extensively by farmers.

According to research by the rural policies centre

of the China Agricultural Science Institute, 67.6%

of the cotton planting acreage is insect-resistant

transgenic cotton plants and more than 7 mio

farmers benefit from planting transgenic cotton.

For the past 12 years, genetically modified cotton

plants have provided RMB 40 bio in economic

benefits.

Chinese technologies in gene transfer rice also

have a leading role and one type of genetically

modified corn, developed by Fan Yunliu, a fellow

of the China Agricultural Science Institute, has

huge market potential.

The Chinese government is considering putting

genetically modified corn and rice into

commercial production. If planted, the growing of

genetically modified rice would benefit 110 mio

farmers, adding USD 100 to the net income of

each household.

China has launched a big project to cultivate new

genetically modified plants with the purpose of

obtaining a series of projects with application

value and autonomous intellectual property rights.

This project is to develop new genetically

modified genes that produce increased yields of

high quality plants that are pest-resistant.

Thirdly, China is creating more opportunities for

the development of genetically modified food.



In accordance with international norms and

China's current situation, China has established a

new management system and regulations for the

genetically modified food industry, paving the

way for China to build up its genetically modified

food technologies.

China has developed a regulatory system, based

on the Regulations on Administration of

Agricultural Genetically Modified Organisms

Safety and the attached rules, which establishes

62 technical standards on gene transfer

biotechnology.

The Ministry of Agriculture also set up the

Agricultural Genetically Modified Organism's

Safety Commission and the National Technical

Committee for Standardization of Biosafety and

35 test centres approved by the Ministry of

Agriculture.

In 2006, China listed genetically modified

organism cultivation in the National Outline for

Medium and Long Term Science and Technology

Development and issued favorable national

policies to promote the research and development

of genetically modified organisms. In 2009, the

State Council proposed to make the biotechnology

industry a new national strategic industry.

In 2010, a key document on improving farmers'

livelihoods said the government should carry out

a major science and technology project to create

new crop varieties using gene transfer

technologies, speed up agricultural biotechnology

innovation and application and pay close attention

to developing the important intellectual property

value of genes and biological variety.

Chinese consumers still have misgivings about

gene transfer foods, misled by some unscientific

opinions and information. This mistrust is not

helpful for the commercialization of bio-scientific

technologies. (Continued on next page)



Food Industry News


The Chinese government adopts a thorough and

clear set of policies to review the safety of

genetically modified food. It reviews and

approves genetically modified food research and

production applications very strictly. These

genetically modified foods can only be sold after

obtaining approval from the government.

For example, Chinese pest-resistant genetically

modified rice was tested for 10 years. Chinese

authorities approved the rice only after certifying

that it was as safe as traditional rice in every

respect. The author is a scholar at China

Agricultural University. (cd 3/1/2011)

While many consumers are quite cautious about

GM foods, partly due to influence from the less

official (less central) media, this is a very positive

report in the official China Daily. The diversity of

information and sources in the Chinese press is a

special aspect of this issue of ChinaNews.

Bakery business booming

According to figures released during a recent

conference, the retail value of the Chinese baking

industry in 2010 was RMB 7.8 bio, almost double

the turnover of 2000. This figure is expected to

grow further to RMB 11.1 bio in 2015. The

composition of the bakery products consumed in

China is also changing. Although traditional

pastries are still the largest segment, Western style

bread is gaining market share at a rapid pace.

(alibaba 4/1/2011)

Wine consumption 2014

According to industry experts, Chinese wine

consumption has increased 100% between 2005

and 2009, from 46.9 to 95.9 mio boxes. They

expect another 20% increase, to 126.4 mio boxes,

by 2014. (hcfood 14/1/2011)

Top brewing regions

China produced 423.989 mio hls of beer during

the first 11 months of 2010, up 6.53%. The

following table lists the top brewing regions and

their growth compared to the same period of

2009.

Production (hls) Growth (%)

Shandong 50 671 000 10.47

Henan 38 625 000 8.76

Guangdong 37 413 000 11.51

Zhejiang 27 197 000 7.39

Jiangsu 25 158 000 -9.36

Liaoning 23 300 000 1.74

Fujian 17 943 000 -1.55

Hubei 17 526 000 3.99

Heilongjiang 17 194 000 10.81

Beijing 15 703 000 2.32

(tjkx 24/1/2011)

Staple imports 2010

The follow figures indicate the total imports by

China of major staples in 2010.

Product Import (t)

Maize 1 570 000

Wheat 1 200 000

Soy beans 54 800 000

Rice 366 171

(source: China Customs; cfin 24/1/2011)



Food Industry News

Eel exports

According to the China Customs, Chine exported

8672 t of live eels in 2010, 18.1% less than in

2009. In the same period, 36 485 t of roasted eel

were exported, up 13.7%. (cfin 31/1/2011)

Apparently, this business is developing from

exporting primary to value added products.

Roasted eel is a typical dish in traditional

Japanese cuisine, so it is interesting to see how

much of this product is currently sourced in

China; knowing how finicky Japanese can be

when it comes to food.

Taiwan CAS food products allowed in China market: official

Taiwan's quality agricultural and farm products

with CAS certificates will now be allowed in the

Chinese market as the label has been registered, a

Taiwanese official said Thursday in Shanghai.

"Taiwan CAS-certified food products will gain an

advantage in the vast Chinese market, particularly

in the hinterlands, now that approval has been

obtained for sales in China, " Hsu Kuei-sun,

director of the Animal Industry Department under

the Council of Agriculture, said at a news

conference at a Cityshop supermarket outlet in

Shanghai.

"In the future, efforts will be made to expand the

sales network of Taiwan's premium CAS products

from Shanghai to other Chinese cities, in

collaboration with local importers and

distributors, " he said. According to Cityshop

President Chue Weihsiung, the CAS label will

help increase sales of Taiwan meat products by

25% at his chain stores. (focustaiwain 20/1/2011)

Sugar imports

According to the China Customs Authority, China

imported 94 300 t of sugar in 2010. (cfin

31/1/2011)

Food statistics

The following table shows the production of

selected foods and beverages in 2010, and their

growth compared to 2009.

Food Output Growth

(%)

Distilled liquor 89 080 000 hls 26.8

Beer 448 300 000 hls 6.3

Wine 10 890 000 hls 12.4

Rice wine 1 341 000 hls 10.9

Dairy products 215 90 000 t 11.1

Meat 21 167 600 t 24.7

(tjkx 28/1/2011)

Canned food update

According to the relevant association, China

produced 6.6 mio t of canned food during the first

9 months of 2010, an increase of 17%. During the

same period, 2.15 mio t was exported, up 24%.

After a difficult period, the Chinese canned food

industry seems to be recovering again. (hcfood

14/2/2011)

Canned food exports

The following table shows the export of canned

food during the first half of 2011 and the same

period of 2009, as well as the relative growth.




Food Industry News


Canned food exports (Contd)

Region 2010 t

Jan - June

2009 t

Jan - June

Growth

%

Beijing 2 191.8 3 410.7 -35.7

Tianjin 219.1 189.5 15.6

Hebei 915.2 288.2 217.5

Inner Mongolia 0.0 29.7 -100.0

Liaoning 7 978.3 4 253.6 87.6

Heilongjiang 546.3 631.2 -13.4

Shanghai 1 706.7 1 368.3 24.7

Jiangsu 3 421.5 2 575.2 32.9

Zhejiang 2 092.9 1 871.3 11.8

Anhui 1 374.0 1 178.7 16.6

Fujian 134 115.1 102 777.4 30.5

Jiangxi 832.0 372.3 123.5

Shandong 9 639.9 7 164.6 34.6

Henan 239.3 211.3 13.3

Hubei 301.1 3 504.4 -91.4

Hunan 798.3 836.2 -4.5

Guangdong 3 002.3 1 697.9 76.8

Guangxi 4 688.5 6 202.6 -24.4

Chongqing 885.5 701.2 26.3

Sichuan 15 170.9 10 705.9 41.7

Yunnan 997.1 0.0

Gansu 0.0 0.0

Xinjiang 18.1 55.6 -67.3

(ChinaCustoms 16/2/2011)

Interestingly, the top regions have seen their

exports decrease, while the highest growing

regions (like Hebei and Jiangxi) have been

relatively minor exporters so far. However, the

changes do not really point at a specific structural

change.

Slow & steady Cittaslow has discovered China, and it is

awarding a little village in Jiangsu the title of

"slow city". Shi Yingying looks at the rewards

and possible repercussions.

The bored teenagers of Gaochun are impatient

with the leisurely pace of hometown life. For

them there is no nightlife to speak of, no bright

lights, no excitement and they cannot wait to

grow up and leave for the urban attractions of the

big cities. But it is this laid-back lifestyle that has

attracted international attention.

At least, a quiet village within Gaochun [1]

county has come under the spotlight. Yaxi village,

population 20 000, is about to be designated

China's first "slow city‖ by Cittaslow, the

sustainable lifestyle movement that first surfaced

in Italy 11 years ago. Yaxi's nearest "sister city‖

in the Asia-Pacific will be Matakana, a little town

in New Zealand's North Island where organic

practices are a part of everyday life - from the

farmer's market to its vineyards, from its

neighbourhood café to its seafood restaurant.

At home, the residents at Yaxi are unfazed and

pretty much unimpressed by the honour. To them,

life has been like this for as long as they can

remember. "Slow city? That sounds like us," says

81-year-old Mei Weibing, whose shoe shop in

Gaochun's Old Street has been around for more

than 50 years.





Slow & steady (Contd)

Mei does not believe in mass production and three

of his sons and their wives help out in the family

business, learning the varnishing trade in the

process. Every cloth shoe is painstakingly

hand-stitched and Mei proudly declares, "I spend

three days making one perfect pair of shoes."

It is this pride and spirit that first impressed

Cittaslow, and the coming award is only a

confirmation of the concerted efforts to preserve

an old-country, small-village atmosphere where

growth is limited, chain stores are discouraged

and civic life revolves around a close-knit society.

Here, growing old gracefully is natural.

Unlike the retirees in urban centres who find too

much time on their hands, Mei is too busy to be

bored. "I learnt how to make shoes when I was

13," says Mei. "I picked up the skill in the

countryside while hiding from Japanese soldiers

during the war and I have used this skill all my

life." But, things are changing. It takes longer to

make a pair of shoes now.

"Hand-stitched soles are no longer available in the

local market, and that means I have to make them

from scratch," says Mei. A radio keeps him

company as he works and he proudly tells us the

local station has just started all-day broadcasts

from November.

Nobody living in this little county had heard of

Cittaslow or the words "slow city" before this.

"The first time I heard the term was last July,

when the vice-president of Cittaslow, Angelo

Vassallo, visited Yaxi village," says

Zuo Niansheng, the Chief Editor of local

newspaper Gaochun Today.

"Vassallo was deeply impressed by this village's

natural and cultural resources and said it perfectly

fitted the requirements for a slow city," says Zuo.

"That was how Yaxi became connected with

Cittaslow." (Continued in next column)


Cittaslow was founded in Tuscany, Italy in 1999.

It was a spin-off from the Slow Food movement

which started, also in Italy, in 1986 as a protest

against the first McDonald's opening near the

Spanish Steps in Rome. The movement

championed a return to healthy, nutritious

home-grown, home-cooked food.

Slow Food has since expanded globally to more

than 130 countries. Its mission has also broadened

to include the promotion of sustainable foods and

local small businesses, and the localization as

opposed to globalization of food production.

It has spurred awareness in reducing carbon

footprints of food logistics, such as reducing food

miles - encouraging consumers to buy and eat

locally produced meat and vegetables.

Cittaslow is an expansion of the Slow Food

movement, and it actively advocates a lifestyle

that is sustainable, that will improve quality of

life, and will preserve cultural and culinary

heritage.

Both movements share the logo of an orange

snail, an icon increasingly recognized globally.

There are now 135 accredited slow cities in 24

countries across the world.

"In China, we will start with Gaochun," says

Cittaslow chairman Pier Giorgio Olivetti. "Slow

city is not a Europe-centered project, it is for the

planet."

The paperwork to add Gaochun's Yaxi village to

the list is in progress. Olivetti says he worked for

three years to clear Colombia's Pijao town to

make it an official slow city. It will earn its final

accreditation in March next year. "The criteria are

very selective at the moment, and no town or city

with more than 50 000 residents can be called a

slow city," says Olivetti.






Yaxi village, with its 20 000 residents and

49 sq.km of organic tea, Chinese herbs and

orchards, fits the bill perfectly.

The Slow City must also be committed to protect

and maintain the natural environment as well as

promote a sustainable way of development - all of

which are the current strategies adopted in

Gaochun. "We've been doing this for years," says

Zuo.

But the Slow City label has drawn criticism from

some quarters, who see it as further proof that

Gaochun has walled itself off as an isolated

enclave. "The county is surrounded by Gucheng

Lake, Shijiu Lake and Shuiyang River," says Zuo.

"In ancient times, we used to be a famous trading

port as merchants from Anhui province

congregated here to do business. But with the

advance and development of land transport, we

were left behind."

Wang Hongtao, who comes from a farming

family in Yaxi village, says he probably has a

higher happiness index than those living in big

cities like Beijing or Shanghai. He has another

take on the laid-back life.

"We are homebodies. We love our hometown and

we are not interested in moving to big cities in

pursuit of the so-called 'better life'. I guess there

are two sides to the coin. The economy suffers

because of this."

But being awarded the Slow City tag may also

have its flip-side, if things are not carefully

managed. Tourism is set to boom. Already, a new

resort villa has opened and a new tour route to

Yaxi is already in operation - all prepared for the

potential rise in visitors. How do you manage the

floodgates?



"We want people to come, but we don't want that

many people to come," said Marilyn Larden from

the non-profit Sustainable Travel International at

last month's China International Travel Mart in

Shanghai. Say that again?

"We have to know what our environmental limits

are before we promote the places of interest. The

only way to do that is to know the bottom line. To

understand, for example, what cultural elements

you have, and how much it would cost in the

carbon perspective," said Larden. The secret, she

says, is to know how to manage the process

before it gets out of hand.

The Chinese have always been masters at

unravelling the mysteries of the Middle Way, but

the first Slow City in China will have to draw on

all the wisdom of the sages if it is to tread the fine

line between preserving a sustainable lifestyle and

being swallowed by the inexorable swathe of

progress which may come with the coach-loads of

tourists all eager to visit China's first Slow City.

(CD 5/12/2010)

Organic local food movement expands in China

Trends forecaster Gerald Celente predicts that in

2011, one of the biggest entrepreneurial

opportunities will be in the organic food

movement. More and more people around the

world are beginning to realize that governments

are only interested in furthering the multinational

corporate interests of companies like Cargill and

Monsanto at the expense of public health and

safety.

In the U.S., ever since the ‘60s when Rachel

Carson published Silent Spring, chronicling the

effects of DDT and other pesticides on the

environment, the organic movement has gathered

momentum reaching critical mass in the ‘90s with

various legislation and organic certification

standards enacted. (Continued on next page)




Organic local food movement expands in China (Contd) According to John Paull, (2007) China‘s Organic

Revolution, Journal of Organic Systems, from

2000 to 2006, China moved from 45th to 2nd

position in the world in number of hectares under

organic management.

China now has more land under organic

horticulture than any other country. In the year

2005/06, China added 12% to the world‘s organic

area. This accounted for 63% of the world‘s

annual increase in organic land, and China now

has 11% of the world‘s organically managed land.

But in spite of China‘s movement towards organic

farming, a survey released recently by Insight

China Magazine and the Tsinghua University

Media Survey Lab, indicates almost 70% of

China‘s consumers feel insecure about food

safety.

―Food safety is a serious problem in China, and

not all the so-called organic foods in shops are

really organic,‖ says He Pinru, an organic-farmer

in southern China‘s Guangdong province.

USA Today reporter, Calum MacLeod, claims a

small but growing number of people are starting

or joining organic farms that abide by the

community-supported agriculture (CSA) model

being used in the USA.

Shi Yan, 28, a rural development expert inspired

by the CSA model says that interest in safer foods

in China has soared since milk powder doctored

with the industrial chemical melamine killed

6 babies and sickened 300 000 in 2008.

MacLeod notes that, in November, melamine

resurfaced in contaminated dairy drinks in Hunan

province despite several government crackdowns

since the milk powder scandal in 2008.


Organic local food movement expands in China (Contd) Chinese companies use melamine in food to

artificially construct higher protein content. China

has about 40 ―real‖ CSA farms, says Yan, who

opened Little Donkey Farm in Beijing‘s

semi-rural suburbs in 2009, where members pay

to work their own plot of land and 500 members

pay a USD 600 annual fee for a weekly supply of

vegetables grown without the chemical fertilizers

and pesticides used on most Chinese farms.

A growing number of Chinese companies have

started their own farms. He Pinru‘s members

include state-owned telecommunications and

power companies, and real estate developers, who

want to offer safe, good-quality food at employee

canteens, he says.

Fang Ming, manager of an organic farm near

Shanghai has 2700 companies, mostly state-

owned, up from 60 at its launch two years ago. ―I

found companies buy our food due to poor food

safety in China, as there are too many fertilizers

used in vegetable cultivation and too many food

additives,‖ he says. ―They also want to offer

green, organic food as a way to unite employees.‖

In China, food-safety activists who alert officials

to food problems are simply arrested. ―Zhao

Lianhai, the father of a boy sickened by tainted

milk powder, was jailed and later paroled in

December for his activism on behalf of other

parents‖.

―I‘m nervous sometimes and very careful about

what I do,‖ says Beijing lawyer Sang Liwei, who

took part in drafting the food-safety law. He says

he avoids cases with multiple plaintiffs because

the government is sensitive about large disputes.

Even as the Chinese government arrests activists

who protest against the chemicals and toxins

found in food grown on unregulated factory

farms, government agencies privately grow their

own food for their staff. (friendseat 25/1/2011)





GLG Life Tech announces Joint Venture in China

GLG Life Tech Corporation, the

vertically-integrated leader in the agricultural and

commercial development of high quality stevia,

has announced that it has entered into a joint

venture agreement with China Agriculture and

Healthy Foods Company Limited (CAHFC) for

the sale and distribution of zero calorie beverage

and food products in China that are sweetened

with GLG's stevia extract products.

The new venture will be called Dr. Zhang's All

Natural and Zero Calorie Beverage and Foods

Company (ANOC). ANOC will focus on the

development of the all natural zero calorie brand

of food and beverages (ANOCTM) and the

establishment of sales and distribution of the

ANOCTM products nationally in China. GLG

will hold an 80% controlling stake in ANOC and

CAHFC will hold 20%.

Dr. Luke Zhang will be the CEO of ANOC and

will be supported by an experienced team of

senior executives recruited by CAHFC from the

beverage industry in China. The company will

hold a conference call Tuesday, December 14th,

10 am EST to review the new venture.

CAHFC has spent the last two years developing

its ANOCTM products and production

capabilities. It has developed 30 beverage

products and 300 food products for the all natural

zero calorie product category. All products will

use GLG's stevia extract as the main sweetener.

CAHFC is the owner of Fengyang Xiaogangcun

Yongkang Foods High Tech Co. Ltd. (FXY) with

whom GLG has an exclusive stevia extract supply

agreement. FXY will be the manufacturer of the

initial products for ANOC. FXY's grand opening

of its beverage operations takes place on

December 18th at its Xiaogangcun facility in

Anhui Province.


GLG Life Tech announces Joint Venture in China (Contd)

The product concept and brand have been market

tested during the last twelve months in a number

of major cities in China to refine the brand and

product concept. The joint venture partners see a

viable market niche to enter with these products

and develop the business.

CAHFC also brings an experienced team of senior

executives to the joint venture from beverage

companies in China including Yili, Kang Shi Fu,

and Hui Yuan Juice, covering all key management

disciplines including R&D and Formulation,

Production, Quality Control, Marketing, Sales and

Distribution and Logistics. These individuals were

recruited for their expertise in building sales and

distribution networks in high growth

environments.

China's food and beverage industry has

experienced a greater than 20% annual growth

rate during the period from 2002 to 2009 with the

industry growing from approximately

RMB 900 bio in 2002 to RMB 4.7 trillion

(equivalent to USD 693 bio) in 2009. For the first

3 quarters of 2010, Industry revenue has been

RMB 4.5 trillion which represents a 26% increase

from 2009.

As China's middle class continues to develop, this

is expected to fuel consumption growth in the

beverage and food industry in China. The

Freedonia Group estimates that the beverage

market in China will grow from

105 750 mio litres in 2007 to 199 500 mio litres in

2017.

The company also sees issues relating to obesity

and diabetes in China as important for the Joint

Venture's products. China has become the world's

second largest country in terms of the number of

diabetic patients (India is largest), with 92 mio

cases reported in 2009 (up from 10 mio in 1987).






China's Ministry of Health has also reported that

there are currently 350 mio people considered

overweight and 70 mio people considered obese.

Adult Chinese male obesity patients are currently

increasing about 1.2% every year, surpassing the

obesity growth rates in the USA, the UK and

Australia.

GLG Chairman and CEO Dr. Luke Zhang stated,

"This joint venture provides GLG with a great

opportunity to enter China, one of the biggest

consumer product markets with one of the fastest

growing beverage industries in the world today.

The CAHFC assets include formulations for over

30 beverage and 300 food products sweetened

with GLG's stevia, as well as certain patents and

trademarks.

CAHFC has also already developed relationships

in China, including with the Government; large

international supermarkets such as Walmart,

Metro AG, Tesco and RT-Mart; and many

mainstream Chinese media including CCTV have

also been engaged for PR and advertising support.

This joint venture is an opportunity to leverage

the two companies‘ strengths to participate in the

growing China food and beverage industry, a

market which GLG believes is largely untapped.

The joint venture has assembled a very strong

team of executives from the beverage industry in

China in order to try to capitalize on this

opportunity.

The company anticipates a quick roll-out of

ANOC's products starting in the first quarter of

2011 with a goal to achieve RMB 3.75 bio

(USD 568 mio) sales in 2013. Additionally,

further growth is expected in GLG's core stevia

extract business driven by the growth of the zero

calorie all natural product category in China as

well as additional international developments in

surrounding Asia countries."



Mr. Song Xiankun, Chairman and President of

CAHFC said, "We are very pleased to be working

with GLG on this joint venture to build ANOC

into a significant provider of all natural and zero

calorie healthy food and beverages in the Chinese

market. Since 1999, GLG has continued stevia

developments in China and is the biggest stevia

grower and producer in the world. I believe with

the upper stream secure from GLG and with the

combination of ANOC's products, the leadership

of Dr. Zhang and the highly experienced

executive team of ANOC, we will be successful

in this growing market in China and ANOC is

expected to be a leading player in the China Food

and Beverage Industry based on its all natural

zero calorie products within 3 years." (fif

15/12/2010)

China Nutrifruit announces delay in fruit and vegetable powder production

China Nutrifruit Group Limited, a leading

producer of premium specialty fruit based

products in China, announced that due to difficult

weather conditions in Daqing, the Company has

decided to delay the final equipment installation

phase of its new fruit and vegetable powder

production facility until March 2011.

China Nutrifruit announced earlier that the

company expects to complete construction of its

new fruit and vegetable powder facility and

commence production in January 2011. However,

weather conditions in Daqing continued to remain

challenging in December 2010, with average

temperatures falling 10 degrees lower than the

same period in recent years. The company's

management team has decided to delay the final

phase of equipment installation to ensure worker

safety and avoid any injuries.





China Nutrifruit announces delay in fruit and vegetable powder production (Contd) The company expects to resume equipment

installation progress in March 2011 and expects to

commence trial production in June 2011. Despite

the delay in commencing production of its fruit

and vegetable powder products, management

expects that such delay will not materially affect

its 2011 fiscal year financial results.

The company expects higher average selling

prices of its products and increased production of

the new glazed fruit products, including

seabuckthorn and blackcurrants, to offset the loss

in revenue and net income from the new fruit and

vegetable powder line for fiscal year 2011. It also

reaffirms its financial guidance for fiscal year

2011 for revenue in the range of USD 90-95 mio

and net income of USD 22-23 mio.

"We are experiencing unusually cold weather in

Daqing, which presents a challenge for our

workers. The fruit and vegetable powder facility

consists of a spray-tower which is approximately

60 metres in height and equipment installation at

such height is adversely affected by extreme cold

conditions. Worker safety is of primary

importance to us and is also in the best interest of

the company. Therefore, we made a decision to

temporarily discontinue equipment installation

progress until March 2011," commented

Mr. Changjun Yu, Chairman of China Nutrifruit.

"In fiscal year 2011, we benefited from increased

average selling prices of our products and positive

market demand for our new seabuckthorn and

blackcurrant glazed fruit products introduced in

September 2010. We believe these positive

developments will enable us to meet our financial

guidance. We also continue to hold a positive

market outlook for our fruit and vegetable powder

segment, which is expected to drive our revenue

growth and profitability to the next level in fiscal

year 2012." (fif 19/1/2011)

China Nutrifruit Signs Supply Contract with Doehler Rizhao

China Nutrifruit Group Limited, a leading

producer of premium specialty fruit based

products in China, announced that the company

entered into a supply contract with Doehler Food

and Beverage Ingredients Co., Ltd. (Rizhao,

Shandong) [4] to supply 1500 t of its fruit

concentrate products.

Doehler Rizhao, a subsidiary of Doehler Group, is

a global consumer brand which offers a variety of

fruit concentrate juices, including apple, pear,

strawberry and kiwi juice concentrates. Pursuant

to the contract, China Nutrifruit will supply 1500 t

of fruit concentrate products to Doehler Rizhao in

January 2011 at the prevailing market price.

"Our new supply contract with Doehler Rizhao

marks an important milestone for China Nutrifruit

as we diversify our customer base with the

addition of a global consumer brand," commented

Mr. Changjun Yu, Chairman of China Nutrifruit.

"Our products passed stringent testing criteria and

we are currently performing the contract.

We believe this demonstrates the high-quality and

market acceptance of our premium specialty fruit

products. We are encouraged by our co-operation

with Doehler Rizhao and will continue to step up

our marketing efforts to further expand our

customer base. We anticipate increased sales

contribution from international customers in fiscal

year 2011 and are confident that our nutritious

specialty products will be well received in both

the domestic and international markets." (fif

25/1/2011)

Institute for healthy baking

A Research Institute for Healthy Baking Products

has been established in Huzhou (Zhejiang) [2]. It

is a joint project of the Huzhou Municipality and

the Shanghai Biology Research Institute of the

China Academy of Science. (cfin 13/12/2011)




Ingredient News

Decernis Agreement with China National Institute of Nutrition and Food Safety

Decernis has entered into an agreement with the

China National Institute of Nutrition and Food

Safety for use of Decernis compliance

information systems and cooperation in expansion

of Decernis content and technology

―We are very proud to support the work of the


Safety and hope to provide compliance

information systems that will improve the

transparency of national requirements in an

international marketplace‖ (Washington, DC

(PRWEB) January 26, 2011)

Organic ham

Jinhua Ham, a traditional speciality of Jinhua

(Zhejiang) [5], has already been reported on these

pages as one of the first Chinese regional foods

that has successfully applied for DOC status.

Recently, one of the larger manufacturers,

Huatong Group, has obtained organic certification

for its Jinhua Ham. Huatong invested

RMB 360 mio in a new low temperature

production process in 2008. The company raises

its own pigs to maximise quality control.

Huatong‘s ham only contains 6-8% salt against

the traditional 10-12%). (cfin 20/1/2011)

Developing local traditional products is regarded

as a good long term investment by many grass

roots governments in China. Jinhua Ham could

very well be the leader in this league.

State recognition for Wanglaoji China‘s famous TCM based herbal tea, Wanglaoji

(Guangzhou, Guangdong) [6], has been officially

registered as a functional beverage in the

prestigious State 863 Plan. This is probably the

strongest official recognition a beverage like this

can receive. (tjkx 14/2/2011)

Wanglaoji came under serious attack last year,

when a man tried to sue Wanglaoji’s

manufacturer, Guangyao, as he believed that his

stomach ulcer had been caused by regularly

drinking Wanglaoji. The law suit not only failed,

but the government backed Guangyao’s claim that

Wanglaoji was a harmless product, based on a

traditional TCM recipe.

Organic coffee from Hainan

The Xingke Horticulture Farm (Wanning, Hainan)

[3] is China‘s first certified producer of organic

coffee. The farm also grows fruit and tea. (cfin

13/1/2011)

Novozymes adds granulation capacity in Tianjin

Investments have been made in the construction

of additional granulation capacity at the Tianjin

[1] enzyme plant. As one of Novozymes‘ three

strategic production bases around the globe, the

plant is capable of manufacturing various

enzymes used in industries such as biofuel, food,

brewing, and detergents.




Ingredient News

Novozymes adds granulation capacity in Tianjin (Contd)

The extended granulation capacity allows

Novozymes to produce more granulated enzymes,

mainly for the detergent and food industries.

Novozymes offers sustainable solutions to

increase yields and to replace, reduce, or optimize

the use of petrochemicals, thereby contributing to

energy savings and emission reductions.

Leaders from the Tianjin government attended the

ceremony and delivered their congratulations.

This is yet another step toward making

Novozymes‘ Tianjin plant an even stronger fit

with one of the first nationwide low-carbon

experimental cities. Tianjin is moving forward,

increasing its role in the global biorefinery

industry and simultaneously stimulating and

promoting related industries.

―This year marks Novozymes‘ 10th anniversary

as an independent company and the 15th

anniversary of our plant in Tianjin,‖ said

Michael Christiansen, President of Novozymes

China. And he continued: ―Over the past 15 years,

China has attached increasing importance to

energy efficiency and emission reduction, and the

investments in this area have been increased,

which brings us more confidence to develop our

businesses here in Tianjin.‖ The construction of

Novozymes‘ GMP-approved hyaluronic acid

plant in Tianjin is in full swing and is expected to

come on line at the beginning of 2011. (fif

14/12/2010)

IFF to invest over USD 100 mio in China & Singapore

International Flavors & Fragrances Inc., a leading

global creator of flavors and fragrances for

consumer products, has announced that it plans to

invest over USD 100 mio in Greater Asia over the

next three years. The investment will be allocated

to two new state-of-the-art manufacturing

facilities located in Guangzhou, China and

Singapore. (Continued in next column)

IFF to invest over USD 100 mio in China & Singapore (Contd)

"I am pleased to announce that over the next three

years we expect to invest a significant portion of

our capital expenditure in Greater Asia," said IFF

Chairman and Chief Executive Officer Doug

Tough.

"As growth in this region continues to accelerate,

it is important that we align our infrastructure to

support our capacity requirements. Today's

investment reflects our continued confidence in

our growth strategies in the region and our long-

term commitment to these very important

emerging markets."

The Guangzhou site will be dedicated to flavor

production while the facility in Singapore will be

used for both flavor and fragrance production.

Located near the existing IFF sites, both new

facilities are ideally situated to ensure a smooth

transition with experienced in-house talent.

Together, the sites will considerably expand

capacity for the Greater Asia region well into the

future.

Doug Tough continued, "On the heels of the

investment into our Creative Centre in Shanghai,

today's announcement underscores our belief in

the region, the strength of our Asian teams, and

IFF's dedication to serving the present and future

needs of our customers." (fif 13/1/2011)

Solae opens new Asia Food Application Centre in Shanghai

Solae is announcing the opening of a new Asia

food application centre. The ―DuPont Solae Asia

Food Application Centre‖ is located within the

DuPont China Research & Development Centre

building in Shanghai, China. The new centre will

focus on food, beverage, bakery, confectionery

and meat products.




Ingredient News

Regional News

Solae opens new Asia Food Application Centre in Shanghai (Contd)

This is Solae‘s fourth major research and

development facility to support global business

growth. The other facilities are located in North

America, Europe and South America. ―We are

very excited to open this new food application

centre in Asia as our similar facilities in other

regions of the world have proven highly effective

at addressing regional food development needs,‖

said Torkel Rhenman, CEO, Solae. ―This new

facility is part of our long-term commitment to

Asia Pacific customers that we will continue

expanding our capabilities, delivering more

nutritional, functional, economical and sustainable

ingredient solutions to this emerging market.‖

The centre is nearly 3000 sq.m., housing a food

and beverage laboratory, a bakery and

confectionery laboratory, a meat laboratory, and a

product analysis and sensory science laboratory. It

is also equipped with state-of-art facilities and

meeting rooms to accommodate requests from

customers for training and discussion. ―This

centre will enable Solae food, meat, and nutrition

scientists to focus on Asian food systems,‖ said

Tony Andrew, Asia Pacific senior sales director,

Solae.

―Solae provides customers with the advantage of

expertise in helping formulate and design

products to meet their needs and the end

consumers‘ needs. In addition to expanding our

capabilities in the region, this new centre provides

another resource for customers to utilize when

developing products with soy.‖ Solae works with

many food and meat manufacturers across Asia

on a variety of food segments including:

ready-to-drink and powdered beverages,

emulsified and whole muscle pork, poultry, and

beef processed meats, nutritional bars, infant and

adult clinical nutritional foods and soy milk

among others. The company currently has three

manufacturing plants located in China with a total

of 11 worldwide. (fif 12/1/2011)

Saccharin 2010

Production

The four designated producers of saccharin have

produced 17 000.781 t of saccharin in 2010,

10.3% more than in 2009. (cfin 31/1/2011)

Exports

According to the China Customs China has

exported 12 892.659 t of saccharin in 2010, up

13.6% over the previous year. The following table

shows the major exporters.

Exporter Region Volume (t)

Beifang Tianjin 2469.53

Changjie Tianjin 2604.77

Fuxin Shanghai 1736.94

Xinghua Kaifeng 2605.05

(cfin 7/2/2011)

Hebei Hebei shuts down wineries for adulterated wines

China's Hebei province shut down nearly

30 wineries Friday morning after wines made

there were exposed on national television as

adulterated.

The local government acted after China Central

Television Station (CCTV) showed wines made in

the province's Changli county as containing

impurities during a programme on Thursday

evening. (Continued on next page)



Regional News

Hebei (Contd)

Hebei governor Chen Quanguo ordered an

investigation late Thursday night at an emergency

provincial government meeting. Chen said at the

meeting that wine makers in Changli county

whose wine was not up to standard would have

their production licences revoked, and they should

recall their products immediately.

CCTV's footage showed a local sales manager

admitting that some of the county's wine was only

20% pure, with water and chemicals, such as

color additives and citric acid, added.

Changli county with nearly 100 wineries is known

by industry experts as a distribution centre of

wine products.

Liquor sales are booming as New Year and

China's traditional Spring Festival approach. (cd

24/12/2010)

Shaanxi

Shaanxi as fruit juice concentrate centre

China is the largest export region of apple juice

concentrate (AJC) in the world and Shaanxi

province alone accounts for 60% of that volume,

de facto making it the world‘s top AJC processing

region. (cfin 26/12/2010)

Yunnan Yunnan coffee province In terms of location and climate, Yunnan province

is very suited for coffee growing. The region

produces 98% of all Chinese coffee.

The current production is 38 ktpa., and is

expected to increase to 200 kt by 2020. (moc

27/12/2010)

Xinjiang

Fish exports from Xinjiang

According to the Quality Inspection Bureau of

Xinjiang, the region exported 532 t of fish in

2010, up 272%. Almost all of this volume

consisted of pond smelt (Hypomesus olidus)

exported to Japan.




Regional News

Xinjiang (Contd)

The remaining 10 t was frozen bass heading for

The Netherlands. The latter was the first export of

aquatic produce from Xinjiang to an EU country.

(cfin 29/1/2011)

Xinjiang is an inland region, so it is not a typical

source of aquatic products. However, the region

counts many rivers, lakes and ponds. It includes

China’s largest breeding base for cold water fish.

Hunan Hunan tea exports According to the Hunan Tea Industry Association,

the province exported approximately 38 kt of tea

in 2010, up 19%. (cfin 31/1/2011)

Shandong Shandong sells more farm produce abroad

East China's Shandong province exported

USD 13.95 bio of farm produce in 2010, up

31.3% year-on-year, the local customs house said

on January 31.

The total included USD 4 bio worth of vegetables,

up 74.6% year-on-year; USD 2.96 bio worth of

aquatic products, up 17.8% year-on-year; and

USD 740 mio worth of fresh and dried fruit and

nuts, up 16.6% year-on-year. Of the total exports,

USD 3.53 bio worth went to Japan, up 24%

year-on-year; USD 2.43 bio worth went to the

European Union, up 18.6%; and USD 1.93 bio

worth went to ASEAN countries, up 52.6% year-

on-year. (cd 1/2/2011)

Guangdong Guangdong dairy imports

According to the Guangzhou Customs, the

province imported 118 kt of dairy products in

2010, up 10.4%. (cfin 24/1/2011)



Company News

From restaurant to manufacturer

Xiaofeiyang (Little Fat Sheep) (Baotou, Inner

Mongolia) [1] is a successful chain of hot pot

restaurants. Based on its success, the company

also started commercially selling its compound

soup base for hot pot. The revenue from that

business reached RMB 200 mio in 2010. The

seasoning sales have become a lucrative second

line of business for Xiaofeiyang. (cfin 19/1/2011)

Stock bases for hot pot have come under severe

criticism in China recently. A journalist in

disguise elicited information from an employee of

a hot pot restaurant and found out that the

various stocks on the menu, advertised as

proprietary recipes, were actually made by

diluting industrially produced ready-to-use bulk

stock. This may turn out to be a good opportunity

for Xiaofeiyang to profile itself as an expert

manufacturer of authentic stock concentrates.

South Beauty works for listing to fuel expansion

Chinese restaurant operator South Beauty Co Ltd

(Beijing) is striving for a listing this year to fuel

its expansion at home and acquisitions abroad,

company Chairwoman Zhang Lan said on

Monday.

"We've been selecting underwriters, but the exact

time for the listing depends on market

conditions," Zhang said, without specifying where

it plans to get listed.

Though Zhang declined to reveal the company's

revenue and profit last year, she said the two

figures are "pretty good". In 2008,

CDH Investments and China International Capital

Corp. Ltd. invested about RMB 300 mio for less

than 10% of South Beauty's share capital,

indicating that the institutions valued the company

at more than RMB 3 bio two years ago.

According to Zhang, South Beauty aims to speed

up its expansion on the mainland by adding 30

new restaurants this year, most of them in second-

tier cities such as Zhengzhou in Henan province

and Xi'an in Shaanxi province.

"After floating shares, we aim to open 300 to 500

new restaurants within three to five years," Zhang

said. South Beauty currently has 57 restaurants in

15 cities, all of which are profitable, she added.

The company opened 17 new restaurants in 2010.

Besides accelerating the expansion on the

mainland, the company is also quickening its pace

in exploring overseas markets.

"We plan to open restaurants in London,

Singapore, Hong Kong and Taiwan this year,

probably in October," Zhang said. "We've also

been seeking opportunities to acquire overseas

brand restaurants, such as those under Michelin."

According to Zhang, the company's exploration of

overseas markets is mainly for branding and its

expansion on the mainland is mainly for profit.




Company News

South Beauty works for listing to fuel expansion (Contd)

"Since the securities regulator is not in favor of

the listing of a high-end restaurant, we will

reposition our restaurants to target a broader

customer base instead of focusing just on business

people," Zhang added. The company will also

branch into fast-food restaurants with a new brand

called "Steam".

Meanwhile, to better control costs and speed its

expansion, the company also plans to strengthen

its efforts in standardizing processes, especially in

the preparatory stage of cooking.

Standardization is also a trend for branded

Chinese restaurants. Qingdao-based Jingya

Group, a high-end restaurant featuring seafood,

also worked with IBM and Kingdee to advance its

standardization process. "Standardization is the

key to improving operational efficiency and

ensuring quality while expanding rapidly," said

Zhang Yongduo, Jingya's chairman.

Yang Liu, deputy director of China's Catering

Association, said that while official data have not

been released, China's food service industry was

forecast to have generated more than

RMB 2 trillion in revenue last year. The revenue

of China's food service industry in 2009 stood at

RMB 1.8 trillion. (cd 1/2/2011)

South Beauty is working hard on its

internationalisation. KLM is already using its

services for its Chinese meals on flights to and

from China.

Yum will raise prices to cover higher costs

Yum Brands forecasts rising 2011 labour and

food costs in China and said that modestly raising

prices in its top growth market would help

mitigate that pressure.

Shares of the owner of the KFC, Pizza Hut and

Taco Bell fast-food chains, rose USD 2.10, or

4.4%, to USD 49.83 in midday trading after the

company left the door open to menu price hikes in

other parts of the world.

Louisville, Kentucky-based Yum, the No.1

Western restaurant brand in the world's

fastest-growing major economy, expects China

wage inflation in the mid-teen percentages this

year.

It also sees food and paper inflation of 5% in

China, 4% in the United States and 3% in other

parts of the world where it operates.

If trends intensify in the coming months,

commodity pressures could be greater than that,

Chief Financial Officer Richard Carucci told

analysts during a call on Thursday.

Higher costs for ingredients like beef, cooking oil

and cheese are squeezing restaurant operators.

Food cost spikes have been problematic in China,

which contributes more than one-third of Yum's

profit.

Yum has more than 3700 restaurants -- mostly

KFC outlets -- in China and has a big lead over

Western rivals in that market, where it one day

hopes to have 20 000 restaurants.

Yum's same-restaurant sales in China were up 8%

for the fourth quarter, fueled by increased visits,

and topped the 5.2% gain reported by

McDonald's, which operates almost

1300 restaurants in China.




Company News

Yum will raise prices to cover higher costs (Contd)

But payroll and benefits expenses rose 33.5% in

China from the quarter a year earlier, while paper

and food expenses rose 19.5%.

Yum executives said the company recently passed

through "modest" menu price increases in China

and that those higher prices should cover most of

its inflation expectations for the year.

If food cost increases exceed expectations,

executives said the company would consider

passing them to diners -- echoing comments from

McDonald's, which also has raised prices in China

and signalled that it would raise prices elsewhere

to cover higher food costs. (Reuters 3/2/2011)

Yum says China to be top profit driver this year

Yum Brands Inc. said China would surpass the

United States as the fast-food restaurant operator's

top profit generator this year, even as the Chinese

market's potential remains largely untapped,

Reuters reported on Dec 8. Yum has more than

3700 restaurants, mostly KFC outlets, in China

and has a big lead over Western rivals like

McDonald's Corp in the world's fastest-growing

major economy.

China for years has been Yum's top market for

sales growth, and Mark Chu, the company's China

president and chief operating officer, said it could

one day have more than 20 000 restaurants there.

"China, we believe, is still on the ground floor of

growth," Yum Chairman and Chief Executive

David Novak said at an investor meeting in New

York on Dec 8. That said, Yum is not pinning all

of its fortunes on China. "We want to become less

China dependent over time," said Novak, who

added that a combination of newer markets like

India and Russia could grow to rival China over

time.


Yum says China to be top profit driver this year (Contd) US restaurant companies have limited

opportunities to build new units at home and

increasingly are looking overseas for new

business.

To that end, Yum expects to build 475 new

restaurants in China next year and 900 outlets in

its other international markets, from Europe to

Asia and Africa.

Yum, which also operates Pizza Hut and Taco

Bell restaurants, now gets about 65% of its profits

from outside the United States -- where it is

struggling to turn around its KFC business -- and

sees that figure rising to 75% by 2015 as it

continues to expand overseas.

Yum says it is on track to post 14% earnings-per-

share growth this year, helped by new restaurant

openings in China and its other international

markets.

The Louisville, Kentucky-based company last

week forecast earnings-per-share growth of at

least 10% next year. On Dec 8, McDonald's

posted November sales that missed expectations,

in part due to weakness in Japan.

Yum's China business is very lucrative, with

margins topping 20%, but costs for labour and

commodities such as chicken are on the rise and

could bite profits in the current fourth quarter.

Wage increases in China are a double-edged

sword for Yum, raising its costs but also putting

more money in its customers' pockets. Labour

costs went up in the latter part of 2010 and are

expected to be higher than normal in the first half

of next year, Chief Financial Officer Rick Carucci

said. Yum also continues to monitor China's

commodity costs.




Company News

Yum says China to be top profit driver this year (Contd)

While the company has not announced menu

price increases to help offset those higher costs,

Carucci said China has easily absorbed previous

price hikes.

The company's China operation has some unique

challenges and benefits ahead next year. A change

to the sales tax in China will result in a roughly

USD 25 mio hit to operating profit in 2011. Yum's

China business also got a USD 15 mio profit

boost from the World Expo in 2010, setting a high

bar for next year.

On the flip side, Yum's 2011 China results should

see a foreign currency exchange benefit of at least

USD 20 mio. McDonald's last month said it raised

menu prices in mainland China to offset higher

food costs there. McDonald's had 1135 stores in

China at the end of 2009. It plans to open 150 to

175 more this year. (cd 9/12/2010)

The contents of these two items about Yum are

very similar, but while the first appeared in the

international media, the second one has been

taken from the Chinese press. The differences

reveal the subtle, but telling, different way of

making sense of the success of a MNC like Yum in

the Chinese market.

Bright nearing deal to purchase GNC Holdings

Bright Food Group Co. (Shanghai) is close to a

deal to buy the US vitamin retailer GNC Holdings

Inc, giving the well-known foreign brand a

potential entry to the Chinese mainland to cater to

the needs of the growing middle class.

Under the deal being discussed, Bright Food

would purchase GNC for USD 2.5 bio to

USD 3 bio, a source familiar with the situation

said late on Monday in the United States.


Bright nearing deal to purchase GNC Holdings (Contd)

The potential acquisition of Pittsburgh-based

GNC, which is owned by Ares Management and

the Ontario Teachers' Pension Plan Board, could

be announced in the next few days, said the

source that declined to be identified because the

talks were not public.

A spokesman for Shanghai-based Bright Food

Group had no comment. The Chinese mainland

has been aggressively snapping up overseas assets

in the resources sector to feed its fast-growing

economy, but a purchase of GNC marks a less

common instance of a major acquisition in the US

consumer space by a Chinese company.

Analysts were generally positive on the deal,

saying it would help Bright Food, backed by the

Shanghai municipality, to catch up with domestic

rivals in catering to the growing number of

Chinese who have money to spend on more

discretionary products such as vitamins.

Bright Food, best known for its dairy products,

has been less successful in building its brand

compared with other major rivals including

Mengniu and Yili, said Shaun Rein, managing

director of the China Market Research Group. "If

they buy strong foreign brands and then bring

them back to China, they are able to catch up with

the local competitors which have better brands in

their products‘ category," he said.




Company News

Bright nearing deal to purchase GNC Holdings (Contd)

"It is a very smart move because they need to be

able to capture brands, technical expertise and

products they currently don't have."GNC, which

sells nutrition supplements, vitamins, sports

drinks and other dietary products through

7100 stores worldwide, had been exploring an

initial public offering, as well as an outright

purchase.

In September, it filed registration papers with the

US stock regulator for an IPO to raise up to

USD 350 mio.

Ares Management LLC and the Ontario Teachers'

Pension Plan bought GNC in 2007 from Apollo

Management LP in a deal with a total enterprise

value of USD 1.65 bio. Apollo had twice

previously tried to take GNC public. Ares

Management, and the Ontario Teachers' Pension

Plan could not be immediately reached for

comment.

Bright Food controls four listed companies,

including Bright Dairy & Food Co. Recently it

was in talks to buy Britain's United Biscuits for

about USD 3.2 bio. The company also recently

lost a bidding war for Australian sugar refiner

CSR . (cd 8/12/2010)

Bright Food has best bid for Yoplait stake-report

Bright Food has presented the highest bid for a

50% stake in Yoplait, valuing the French yogurt

company around EUR 1.7 bio, French newspaper

Le Figaro reported.

In an advance edition of its Wednesday paper, Le

Figaro cited unnamed sources saying that the

Shanghai conglomerate had submitted the

strongest of nine bids.


Bright Food has best bid for Yoplait stake-report (Contd)

Unlisted Yoplait, the world's second-biggest

yogurt company after Danone (DANO.PA), is

half owned by PAI Partners and farming

cooperative Sodiaal. PAI hired banks in

September to find buyers for its stake.

[ID:nLDE7150H5]

On Sunday, a source told Reuters that Yoplait's

board would meet on Friday to evaluate the

offers, and would draw up a short list of

candidates by the end of February. French weekly

newspaper, Journal du Dimanche, had reported

that PAI Partners had received nine bids for its

stake, including offers from US food company

General Mills (GIS.N) and Switzerland's Nestlé

(NESN.VX).

Other bidders reportedly include Mexico's Grupo

Lala, French cheese maker Bel (FROB.PA) and

French dairy group Lactalis, as well as private

equity firm's Axa Private Equity (AXAF.PA),

Bain Capital and Lion Capital. Le Figaro reported

that a French buyer, such as Lactalis, Bel or Axa

Private Equity, would be the preferred buyer for

Yoplait even if their offers were lower. (Reuters

8/2/2011)

Bright has so far denied that it is in discussion

with Yoplait.

Milk + liquor

Top dairy producer Bright, has acquired a 40%

stake in the distiller Quanxing (Sichuan). The

shares were purchased from Shuijingfang, another

distiller. The shares are placed at the Shanghai

Sugar, Tobacco & Alcohol Co., a subsidiary of

Bright. (cfin 3/1/2011)

Regular readers of these pages may have noted

that Bright has been very eclectic in its

purchasing activities during the past year. The

company is apparently aiming at becoming a

generalist food group. The feasibility of such a

strategy is not evident.



Company News

China Resources acquires Henan’s second largest brewer

China Resources Snow Breweries (China)

Limited (CR Snow) has completed the buyout of

Henan Aoke Beer Industry Co., Ltd (Aoke).

The acquisition is the second of CR Snow's heavy

punches to Henan's market, which comes a month

after November 26th, when the foundations were

laid to CR Snow's 200 000 hls beer production

project in Zhumadian, Henan [2].

Those in the field believe that as a leader of the

Chinese beer industry, CR Snow's acquisition

warrants attention in the recently active Henan

market, as it is the first time a national beer brand

has formally entered the Zhengzhou area in a

large scale move, which is the centre of Henan's

beer industry. It also signifies the unveiling of CR

Snow's dominance in the Central Plains.

CR Snow expressed that it has acquired Aoke's

three factories in Zhengzhou, Luohe, and Anyang,

as well as the brewing assets. The annual

production of the three factories total 290 000 hls.

More remarkably, upon the completion of the

buyout, CR Snow will invest an additional

RMB 400 mio in large scale technological

upgrades, relocation and expansion.

Phase one expansions will bring a capacity of

400 000 hls, significantly higher than the scale of

the Aoke factory acquired. Along with the

foundations laid in Zhumadian, the acquisition

will increase the number of CR Snow's production

headquarters in Henan to four, with a capacity of

600 000 hls.

Aoke Beer is a widely recognized brand in Henan,

excelling in terms of reputation, quality and sales

teams when compared to the numerous beer

corporations in Henan. Aoke's core factory in

Zhengzhou lies in the city cluster of the Central

Plains, the economic heart of Henan, which bears

significant strategic importance. (Continued in

next column)

China Resources acquires Henan’s second largest brewer (Contd)

Industry figures have shown that since it first

entered the Henan market, CR Snow has

maintained three years of steady and low profile

market operation. With sales in Yudong reaching

200 000 hls, it has continued to assume leadership

in the local market, surpassing other top-end

national brands in terms of sales in Henan, and

accumulating operational experience in the

diverse local market.

It is exactly with this accurate insight in the

Henan market that CR Snow has swiftly set up a

local strategy by way of a series of acquisitions

and expansion of factories.

Henan is the most highly populated province in

the country. Beer consumption is high, ranking

second nationally. For many years, competition

among the 40 strong local beer enterprises has

been fierce, with chaotic price wars which not

only make it difficult for the industry, but fail to

satisfy the ever-rising beer consumption demands.

The development of the industry has been below

the national average.

Upon stepping up its domination in the Central

Plains, CR Snow will deploy its efficient brand

integration, technological and quality edge, first-

class enterprise management and experience in

market operations to propel the Yu beer industry

out of its current difficulties.

"CR Snow will proactively take up the pivotal

role of reshaping Henan's beer industry through

the integration of resources and market expansion,

creating an atmosphere of constructive

competition and development." general manger

Wang Qun of China Resources Snow Breweries

(China) Limited stated. "The series of strategic

moves in the Henan market are but the first steps

of CR Snow's venture into the Central Plains."




Company News

China Resources acquires Henan’s second largest brewer (Contd)

Established in 1994, China Resources Snow

Breweries (China) Ltd. is a national producer and

seller of beer, with headquarters in Beijing. Its

shareholders are CR Enterprise and SABMiller,

the second largest beer enterprise in the world.

CR Snow currently operates about 70 beer

factories in China, with the CR Snow brand and

over 30 local brands taking up 19.8% of China's

business market.

In 2009, CR Snow's sales amounted to

8.37 mio hls, with an annual growth as high as

15.3%, and corporate sales greatly surpassing

other beer enterprises in the country for 5 years

straight. CR Snow's brand sales increased further

in 2009 to 18.8%, reaching 7.24 mio hls, thereby

cementing its status as a leading beer brand in the

world. (fif 14/1/2011)

The HQ of the China Resources Group is located

in Hong Kong. The large Chinese corporations

are playing more and more with multiple home

bases in Hong Kong and a mainland city.

Investors need to be aware of this. The same

applies to the following item on Tsingtao. Henan

has become a focus region for competition in the

Chinese brewing industry recently.

Tsingtao to acquire rival brewer

Hong Kong-listed Tsingtao Brewery Co Ltd, one

of China's best known beer brands, said it is

spending RMB 1.87 bio to acquire another

Shandong-based brewery in order to expand its

market share in the province.

Tsingtao will buy competitor Xin Immense

Brewery Co. (Shandong) [3], the company said in

a filing to the Hong Kong bourse Tuesday. The

acquisition is consistent with the company's

strategy to strengthen its market position,

Tsingtao said in a statement.


Tsingtao to acquire rival brewer (Contd)

Its stock surged 5% to close at HKD 42.95 in

Hong Kong trading Tuesday - its highest level

since August 30 - compared with the 0.82% gain

of the Hang Seng Index. Tsingtao shares had lost

5% of their market value this year through

Monday.

"It is a reasonable purchase price and a good

move for the company to cement its market

leading position in the beer market," Xia Ping, a

Shanghai-based analyst with Core Pacific-

Yamaichi told China Daily.

More mergers and acquisitions are expected as the

battle for increased market share in the brewery

segment heats up, Xia added. Tsingtao, the largest

Chinese beer maker by output, said in October

that its net profit grew 21.5% year-on-year to

RMB 1.52 bio in the first 3 quarters of the year,

due to expanded production capacity and the

launch of new premium beer products.

Since the beginning of the year, it has committed

itself to expansion moves in order to counter stiff

competition from both domestic and global rivals.

This included boosting the annual production

capacity of its plants in Fuzhou and Shijiazhuang

by 400 000 kilolitres, as well as plans to boost

output at its plant in Zhuhai by 600 000 litres per

year.

However, the mounting costs of barley resulted in

a decline in Tsingtao's gross margin in the third

quarter. From July-September, the domestic

barley wholesale price climbed 12% while major

futures contracts of Australian barley soared 26%

from a year earlier.

"Tsingtao is likely to absorb barley-price inflation

through internal cost controls since its gross profit

margin is still sound at above 35%," said Xia.

"But if the raw material price hikes continue next

year, Tsingtao is likely to lift beer prices since it

still possesses the pricing power in the market."




Company News

Tsingtao to acquire rival brewer (Contd)

Alvin Chung, associate director at Prudential

Brokerage, said that although shares of Tsingtao

failed to catch up with the main index this year,

its performance in recent months is noteworthy

due to the upcoming Christmas holiday season

and the market anticipating the brewery

acquisition.

"I believe cost inflation won't hurt breweries like

Tsingtao for long since the Central Government

has determined it will maintain the stability of the

nation's food prices," said Chung. (CD 8/12/2010)

Following our comments on the previous item,

this article is an interesting example of how

Chinese corporations play with different names.

Qingdao also used its older English name

Tsingtao. It is not always clear if these names are

referring to the same company. Another issue that

requires the attention of investors.

More beer from Yunnan

The expansion project of Lancangjiang Brewery

(Yunxian, Yunnan) [4] has been completed. The

company‘s capacity has increased to 6 mio hls

p.a. The capacity of distilled liquor has increased

to 1.5 mio hls. (tjkx 16/2/2011)

Lancangjiang is the Chinese name for the Mekong

River, which originates in China.

Record turnover for Wuliangye

China‘s top distiller, Wuliangye (Yibin, Sichuan)

[5], has filed a turnover of RMB 40.36 bio for

2010, yet another increase of 15.22% compared to

2009. With these record earnings, the company

has been China‘s No.1 distiller for 16 consecutive

years. (foodnews 9/2/2011)

Wine in China: premium at the pump

French winery Domaine de Chevalier said last

week it plans to sell its wines in China‘s gas

stations. The premium winemaker has an

agreement with China Petroleum & Chemical

Corp. to market its Bordeaux in 110 stores across

China, according a report by Shenzhen Special

Zone Newsletter (in Chinese).

Olivier Bernard, owner of the 18th-century

Bordeaux region winery, said a deal hasn‘t been

signed yet, but if all goes according to plan,

Sinopec will stock Chevalier wines that cost in the

range of RMB 600 to RMB 700 a bottle — hardly

bargain-basement plonk.

Mr. Bernard set up a Domaine de Chevalier office

in Shanghai this year, where his son is hosting

wine tastings and building the brand. ―We‘re

starting to sell seriously in China,‖ Mr. Bernard

said from his office in France.

This won‘t be the first wine sold at Sinopec, as

the petroleum company is also known in China. It

has been selling Great Wall, one of the country‘s

leading labels, since it ventured into products

other than fuel two years ago (only 15% of its

95 000 stations sell nonfuel products, such as

wine).

As the Wall Street Journal reported in October,

some marketers have realized that there‘s money

to be made in the rise of China‘s car culture.

Domaine de Chevalier, amongst others, is betting

that people who visit Sinopec may want to buy

more than gasoline when filling their tanks.




Company News

Wine in China: premium at the pump (Contd) China‘s tough stance on drunk driving — getting

behind the wheel after having as little as one

alcoholic drink can be enough to qualify someone

as a ―drink driver,‖ punishable by a six-month

licence suspension and a possible 15-day jail

sentence — will hopefully dissuade people from

getting tanked when buying their gasoline. (wsj

14/12/2010)

Meat districentre in Sichuan

A project for a new meat distribution centre in

Chengdu (Sichuan) [6] has been cleared by the

provincial environmental authorities. This means

that the construction of the Chengdu Meat

Distribution Centre of the Chuanshang Cold

Chain Food Co., Ltd. can start. The facility will

have a storage capacity of 55 kt. (cfin 8/12/2010)

COFCO starts meat retail business

COFCO (Beijing) has opened its first meat retail

outlet in Beijing. The company has stated that it

wants to free itself from the control of large

retailers like Carrefour. (tjkx 10/2/2011).

In China it is still common practice that

companies have to pay commissions to

supermarkets to be placed on the latter’s shelves.

This constitutes a serious cut in profit for food

manufacturers in China. As a result, more and

more large producers have invested in their own

retail chain during the past couple of years.

Starbucks set to continue expansion

Starbucks has announced that it expects to be

operating 1500 outlets by 2015. The company

also plans to increase its turnover from packaged

products. (sina 2/12/2010)

Sino-Japanese coffee

Hougu Coffee (Yunnan) [4] and UCC have signed

a strategic alliance agreement. Hougu is one of

China‘s largest producers of coffee. UCC has

been producing coffee in Japan since 1933, and is

operating a nationwide chain of coffee shops in

China. Hougu and UCC will start cooperating in

buying good quality beans, and later Hougu may

produce instant coffee under the UCC brand.

(fam365 20/12/2010)

UCC is following suit with Starbucks that decided

to use Yunnan coffee in its Chinese outlets a year

ago. Starbucks then stated that it may extend this

practice to the entire Asian region. Yunnan needs

to be monitored by international coffee suppliers.

Shuanghui beefs up with overall industry chain

Shuanghui Group (Luohe, Henan) [7], China's

largest meat company, said the overall industry

chain will help it achieve ambitious sales goals

and promote brand value.

"I believe that we will achieve annual sales of

RMB 100 bio within five years and become the

most valuable meat brand in the world. And

industrialization can guarantee the high quality of

our food and help avoid risks," Wan Long,

chairman of the board at Shuanghui Group, told

China Daily.

Early this month, the group injected almost all

businesses into its listed company - Shuanghui

Development Co - making it the world's most

valuable meat company stock, with a market

value of more than RMB 100 bio.

The industry chain will make its products

traceable. The company will know the origin and

health condition of the hogs it uses as well as the

destination of processed products, Wan said.




Company News

Shuanghui beefs up with overall industry chain (Contd)

Shuanghui's competitors, Smithfield and Tyson,

are either engaged in the slaughtering or meat-

processing sides of the business, he said, but not

the whole chain, bringing them risks caused by

fluctuating prices and supplies of materials.

Shuanghui spent more than RMB 4 bio on

acquiring slaughterhouses, expanding its annual

capacity to 2 mio head. When a slaughterhouse is

set up, it also opens processing plants to make full

use of the meat.

The Luohe, Henan-based company will invest

RMB 20 bio during the 12th Five-Year Plan

(2011-2015) to double its production to 6 mio t.

Because the top 10 Chinese companies make up

less than 10% of the domestic market,

Shuanghui's supply will not exceed demand, Wan

said.

According to China International Capital

Corporation, China's slaughtering and

meat-processing industries are decentralized.

There are only 3696 modern enterprises in China,

accounting for 18% of the market, while the other

82% is served by slaughterhouses with manual

and semi-mechanized operations. (cd 21/12/2010)

Lulu Beverages expands in Henan

Lulu (Chengde, Hebei) [8] has officially started

construction of a new plant in Zhengzhou (Henan)

[9]. The new facility will have a capacity of

1 mio hls of soft drinks, Almond Drink and

Walnut Drink, and is expected to start production

late 2011. (cfin 21/12/2010)

Campbell Soup Company and Swire Pacific form joint venture in China Campbell Soup Company announced that it has

entered into an agreement to form a joint venture

with Swire Pacific Ltd. to support the

development of the company's soup business in

China. Called Campbell Swire, the new company

will begin operations in early 2011. Campbell will

have a 60% ownership stake in the joint venture,

giving it a controlling interest. Profit and losses

will be shared in proportions consistent with each

party's ownership.

China is now the world's second largest economy

and has one of the highest rates of per capita soup

consumption in the world. Approximately 355 bio

servings of soup are consumed in China annually

- nearly all of them homemade.

Douglas R. Conant, Campbell's President and

CEO, said, "We continue to believe that

developing a commercial soup market in China

represents a tremendous business opportunity for

our company. Realizing the benefit of such an

opportunity requires a long-term commitment and

the right strategic partner. Swire has been an

effective distribution partner for Campbell since

we launched our business in China in 2007, and

we look forward to the next phase of our

relationship together."

The joint venture will be based in Campbell's

current offices in Shanghai and will be

responsible for manufacturing, packaging,

branding, marketing, selling and distributing soup,

broth and stock products in China. Campbell will

retain ownership of Campbell brands and recipes

and license those to the joint venture.

Christopher Pratt, Chairman, Swire Pacific Ltd,

said, "The consumption of soup is an integral part

of Chinese dining culture and its

commercialization has exciting potential which

we believe this new partnership can realize.




Company News


Campbell Soup Company and Swire Pacific form joint venture in China (Contd)

Campbell as a global leader in the marketing and

manufacturing of soup, together with Swire

Pacific's long experience of sales and distribution

in China, will bring the right attributes to develop

this market opportunity."

Campbell Swire will be led by Peter Foyston, 47,

who joined Campbell in 2009 and is currently

General Manager Campbell Soup Greater China.

Mark Alexander, President, Campbell

International, said, "We've made great strides in

understanding the market and refining our

products to appeal to Chinese consumers.

This partnership will help unlock the potential of

the commercial soup market in China by pairing

Campbell's brands, recipes and consumer insights

with Swire's sales force, logistics capabilities and

overall market knowledge." (fif 17/1/2011)

New plant for Wadakan

Wadakan Food Co., Ltd. (Beijing) is constructing

a new plant in Beijing‘s Shunyi region. It will

produce 30 kt of soy sauce, 20 kt of vinegar and

10 000 of other condiments p.a. (cfin 25/12/2010)

Seaweed transplantation in Weihai

The Ocean Fishery Research Institute in Weihai

(Shandong) [1] has been investigating the

transplantation of sea-tent (Herba Zosterae

Marinae) since 2006. The regional seaweed

resources have been decimated by pollution from

industrial and agricultural chemicals during recent

years. The institute has developed ways to revive

the local seaweed population.


Seaweed transplantation in Weihai (Contd)

Although the results to date are still far from

satisfactory, it is the first time that sea-tent has

been transplanted successfully. (capn 8/12/2010)

This seems to be a good example of Chinese R&D

that can be put to good use in many parts of the

world.

New protein beverage launched

Junding Kanglemei Food Co., Ltd. (Beijng) has

launched a new type of soy protein beverage

branded 5.5. The company has imported Japanese

technology to remove the strong odour of soy

beans, while retaining the typical soy bean

fragrance. The company has developed the

product in cooperation with a number of research

institutes. (fip 15/12/2010)

Protein beverages are a typical Chinese drink.

They can be made from peanuts, almonds,

syrup. Lulu Group, mentioned in the Companies

section of this issue, is the leading manufacturer

of this type of beverage.

walnuts, etc., and are rather thick, almost like a




Pickled lactobacillus

Pickled vegetables have been a speciality of

Sichuan for ages. The industry reached a value of

RMB 12 bio in 2010, making it a serious

business. The provincial authorities are supporting

R&D efforts for improving the traditional

production process and upgrading it to modern

economic production.

This includes the development of special

lactobacillus strains for pickling vegetables.

Industrial cultures could shorten the production

time to 2/3 and lower the nitrate content by 70%.

It is expected that pickles produced with industrial

cultures will become available this year. (tjkx

17/1/2011)

Compliance automation

Decernis LLC and Decernis GmbH announced

today that Decernis has entered into an agreement

with the Division of Food Standards of the China

National Institute of Nutrition and Food Safety.

The Division of Food Standards will employ

Decernis compliance information systems, in

particular, gComply, to help the Division in its

work in the evaluation of food contact and food

additive issues.

As part of the agreement, the Food Standards

Division has agreed to support cooperative steps

with Decernis, regarding the expanded use of

compliance information systems in China with the

goal of assisting both exporters and importers in

meeting global and Chinese national

requirements.

Toward this end, Decernis will organize and

conduct industry seminars in China on food

compliance topics and the use of automated

compliance information systems. In supporting

this effort, the Food Standards Division has also

agreed to provide and update information on

Chinese standards and other content to Decernis.


Compliance automation (Contd)

Decernis has agreed to improve its Chinese

language search technology to improve access by

Chinese users to Decernis products and services.

A result will be the enhancement of the

multi-lingual search technology developed by

Decernis. Decernis has developed patented

technologies designed to make searching of

regulatory and scientific information more

accurate and comprehensive.

"We are very proud to support the work of the


Safety and hope to provide compliance

information systems that will improve the

transparency of national requirements in an

international marketplace," said Andrew (Pat)

Waldo, CEO of Decernis.

Decernis LLC with its headquarters in

Washington, D.C. provides information systems

and content for global food, consumer, and

industrial product safety with clients in 46

countries. The company tracks developments in

more than 130 countries. Its clients include

governmental agencies such as FDA, EFSA, and

OECD; food and consumer product

manufacturers; raw material manufacturers; law

firms; and laboratories.

The company's value-added systems integrate

with leading supply chain management systems

and support traceability and compliance of

transactions. (prweb 26/1/2011)



Upcoming events

Upcoming events

2011 Asia Pacific Food & Beverage Green

Technology Summit

Location: Shanghai

Dates: March 22 – 23, 2011

Telephone: 021-52120927*117

Fax: 52120818

Email: [email protected]

Food Ingredients China 2011

Location: Shanghai, Everbright Exhibition

Centre

Dates: March 23 – 25, 2011

Telephone: 010-59795833

Fax: 59071335


10th

China (Guangzhou) Int’l Nutritional,

Health & Organic Food Fair

2011 China Int’l Food Exhib. Guangzhou

Imported Food Fair

2011 China (Guangzhou) Int’l Wine Exhib.

Guangzhou Red Wine Fair

Location: Guangzhou Jinhan Exhibition Centre

Dates: 29 – 31 March, 2011

Telephone: 020-61371549

Fax: 61089459, 61089469



Upcoming events (Contd)

8th

China Beijing Int’l Bakery Exhibition

Location: Beijing Exhibition Centre

Dates: April 8 – 10, 2011

Telephone: 010-58221856

Fax: 58851286


7th

China Int’l Cooking Oil & Olive Oil

Exchange

Location: Shanghai Everbright Exhibition

Centre

Dates: April 18 – 20, 2011

Telephone: 010- 64416542, 64414996

Fax: 64412631


2011 China (Beijing) International Tea

Exhibition

Location: Beijing Exhibition Centre

Dates: April 20 – 22, 2011

Telephone: 010-84470593, 84470631,

84470590, 84471350

Fax: 84470631

URL: www.teaexpo.org.cn

8th

China Int’l Food & Food Processing

Equipment (Qingdao) Exhib.

Location: Qingdao (Shangdong) Int‘l Exhibition

Centre

Dates: April 27 – 29, 2011

Telephone: 0532—55552901, 55552902

Fax: 55552903





Upcoming events

Upcoming events (Contd)

2011 Shanghai Int’l Herbal Extracts & Natural

Colorants Exhib.

Location: Shanghai Everbright Exhibition Centre

Dates: April 27 – 29, 2011

Telephone: 021-24286967

Fax: 51062763


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