Guangzhou China Dec. 21, 2010 –"The past is never dead. In fact, it's even not past." China's corn product industry not only faces great challenges but also enjoys great opportunities in 2010, for the high cost of raw materials, international and global inflation, government's stricter supervision, as well as the recovery of downstream market. Some manufacturers of corn products have to restrain their production or even shut down their plants because of high manufacturing cost; while others are eliminated by the government due to high pollution and high energy consumption. However, some manufacturers can even gain great profit by dint of the inflation and brisk market.
Besides, the sound economic environment and strong prospect for the food and beverage industry also support the rapid growth of corn products. China has achieved 10.6% GDP growth rate in the first three quarters of 2010, compared with 8.9% at the same time of last year, and it's expected that it will be 10% on average for the whole year. Food sales value achieved USD677.45 billion in the first nine months, up 26% over the same period of last year. It's estimated that the total sales value can reach USD799.4 billion in 2010. Meanwhile, the output of beverage in China was 74.9 million tonnes in the first nine months of 2010, up 16.6% over the same period of last year.
As for food additives, most corn products can benefit greatly from food and beverage industry. However, 3.2% CPI and 5.3% PPI on average during January and November this year still exert some influence on corn product industry. Hence, the government and processors still have much to do to secure the long-term development of corn product industry.
Source:
Corn Product China News
CCM International,Ltd.