CCM Data & Primary Intelligence
Future of Starches in China The First Edition
Researched & Prepared by:
Guangzhou CCM Information Science and Technology Co., Ltd Guangzhou, P. R. China
2010
Copyright by Guangzhou CCM Information Science and Technology Co., Ltd (P. R. China) Any publication, distribution or copying of the content in this report is prohibited. Website: http://www.cnchemicals.com Tel: +86-20-3761-6606 Fax: +86-20-3876-6968 Email: econtact@cnchemicals.com
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Email: econtact@cnchemicals.com Fax: +86-20-3761 6968
CCM Data & Primary Intelligence Description: China's output of starch, including native and modified starch, is the second largest in the world. Major varieties of native starch include corn starch, potato starch, cassava starch and wheat starch, while that of modified starch include corn modified starch, potato modified starch and cassava modified starch. China's starch output has kept growing rapidly with CAGR of about 17.00% since 2001, which reached 17.10 million tonnes in 2008. It is predicted that China’s starch output will increase stably to 25.47 million tonnes in 2020. What is the position of Chinese starch industry in the world? Why do Chinese starch industry develop so fast? Which products will witness promising prospect in the future? China is the second largest native starch consumption country in the world, with total consumption value of USD6.10 billion in 2008, of which USD700.00 million was contributed by modified starch consumption. With various characteristics and functions, modified starch is widely applied in industries such as papermaking, food processing and textile in China. As for price, China's starch price is mainly influenced by raw material price, supply & demand situation and technology innovation. How are such factors affecting China’s starch industry? You will find answers in the report. Raw material cost constitutes the major proportion in starch manufacturing cost. In China, production cost of cassava starch is lower than that of corn starch, with USD333.16/t and respectively. However, native cassava starch only accounts for 3.13% share in domestic native starch market. In the USD340.34/t for corn starch, the cost of corn was USD308.01/t, accounting for 90.56% of the total cost, what cause this situation? In recent two years, Chinese starch supply has surpassed domestic demand. As for international trade, export of native starch is increasing, while import is decreasing. But the situation is different for modified starches. Which kinds of native starch and modified starch have sufficient supply and which kinds are in demand? Starch production technology mainly includes dry method and wet method, and wet method is widely adopted in recent years. However, it causes serious pollution like large volume of waste water. Has any technology innovation achieved in recent years? What is covered in this report - An overview for current market of corn starch, cassava starch, potato starch and wheat starch, as well as starch derivatives in China, with focus on statistics of capacity, output, import & export, supply & demand, major manufactures, future trend, etc. - Outlook for starch raw material supply & demand - Balance in starch industry, from raw materials to end use markets/products - Competitiveness of Chinese starch and fermentation products in domestic and export markets, and impact of raw material supply on starch industry - Foreign investment in China’s starch industry
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CCM Data & Primary Intelligence - Future development trend of China’s starch industry What can you benefit from the report? From this report, you can obtain the latest info on China’s and the world’s starch industry, thus obtaining business intelligence before involving in the competition and grasping commercial opportunities. Besides, you can also know your competitors and their activities in China. A clear picture for competitive landscape of China’s starch industry is provided. With the in-depth analysis on drivers and barriers of starch development, you may find out where China’s starch market will go next.
Main content: No. Content
Page
Executive summary
1
Methodology, source and definition
3
I
Introduction to native starch and modified starch
5
I-1
Classification and introduction of/to native starch and modified starch
5
I-2
Introduction to starch in the world
7
I-3
Overview of China’s starch industry
8
II
Governmental policies
10
II-1
Governmental policies on feedstock
10
II-2
Financial and tax policies
11
II-3
Environmental regulations
12
II-4
Industry standard
15
III
Native starch production in China
16
III-1
Characteristic of native starch production in China
16
III-2
Introduction to raw materials for native starch production
19
III-2.1
Corn
19
III-2.1.1
Overview of corn supply, consumption
19
III-2.1.2
Principal local market quotations and trade prices
21
III-2.1.3
Corn products
23
III-2.1.4
Mass balance of corn and corn products
25
III-2.2
Cassava
27
III-2.3
Potatoes
30
III-2.4
Others
34
III-2.4.1
Wheat
34
III-2.4.2
Sweet potato
38
III-3
Corn starch
40
III-3.1
Output and capacity development
40
III-3.2
Key players
41
III-3.3
Principal local quotations and trade prices
50
III-3.4
Manufacturing cost structure
51
III-3.5
Investment discussion
52
III-4
Cassava starch
53
III-5
Potato starch
58
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CCM Data & Primary Intelligence III-6
Wheat starch
65
III-7
Other native starch
69
III-7.1
Sweet potato starch
69
III-8
Forecast on production to next 5-10 years
72
IV
Starch derivatives in China
76
IV-1
Modified starch in China
76
IV-1.1
Modified starch production
76
Production and capacity development
76
Producers of modified starch
79
Price change of modified starch
85
Technology brief and manufacturing cost structure
86
IV-1.2
Consumption of modified starch
88
IV-1.3
Forecast on modified starch to next 5~10 years
89
IV-2
Ethanol
91
IV-2.1
Fuel ethanol
91
IV-2.2
Edible ethanol
95
IV-3
Organic acids
97
IV-3.1
Citric acid
97
IV-3.2
Lactic acid
100
IV-4
Amino acids (lysine, MSG, etc.)
106
IV-4.1
Lysince
106
IV-4.2
MSG (Monosodium Glutamine)
109
IV-5
Vitamins
114
IV-5.1
Vitamin C
114
IV-5.2
Vitamin B
119
IV-6
Starch sugar
123
IV-6.1
Glucose
123
IV-6.2
Malt syrup
126
IV-6.3
Maltodextrin
129
IV-6.4
HFCS
132
IV-7
Sugar alcohols
134
IV-7.1
Sorbitol
134
IV-7.2
Mannit
140
IV-7.3
Maltitol
142
IV-8
Enzyme preparations
144
IV-8.1
Îą-Amylase
144
IV-8.2
Gluco-amylase
149
IV-8.3
Lipase
153
IV-8.4
Pectinase
157
IV-9
Anti-biotics
160
V
Native starch consumption and end-use segments
163
Summary
163
V-1
Characteristic of native starch consumption in China
164
V-2
Consumption structure of native starch in China
166
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CCM Data & Primary Intelligence V-3
Consumption in food processing
167
V-4
Consumption in papermaking
168
V-5
Consumption in beverages
169
V-6
Consumption in other industries
169
V-7
Forecast on demand to next 5~10 years
170
VI
Import and export analysis of corn and starch
171
VI-1
Corn
171
VI-1.1
Historical situation
171
VI-1.2
Current situation
171
VI-1.3
Future trend
172
VI-2
Starch
173
VI-2.1
Native starch
173
VI-2.1.1
Import analysis
173
VI-2.1.1
Export analysis
177
VI-2.2
Modified starch
183
VI-2.2.1
Import analysis
183
VI-2.2.2
Export analysis
185
VII
Mass balance of native starch and supply-demand situation
187
VII-1
Mass balance of native starch in China
187
VII-2
Analysis of supply-demand of starch in next 5~10 years
188
VII-3
Analysis of supply-demand situation of corn in next 5~10 years
190
VIII
Competitiveness of Chinese starch and its derivatives (in domestic and overseas markets)
191
VIII-1
Pricing and manufacturing cost
191
VIII-2
Raw materials
193
VIII-3
Technology innovation
195
VIII-3.1
Foreign technology situation in starch industry
195
VIII-3.2
Chinese technology innovation in starch industry
197
IX
Foreign involvements in starch industry of China
201
IX-1
Foreign involvements situation in Chinese starch industry
201
IX-2
Policy for foreign involvements
205
X
Commercial opportunities and conclusion
207
X-1
Commercial opportunities
207
X-2
Conclusion
208
XI
Profiles of key manufacturers
209
XI-1
Native starch manufacturers
209
XI-2
Modified starch manufacturers
229
Executive summary: China is the second largest starch producer in the world, only next to the U.S., with total starch output of XX million tonnes in XX. China’s starch industry has developed fast in recent years with strong governmental support. Owing to overcapacity in starch industry, starch producers have been facing intense competition in last few years. Price of starch is mainly determined by manufacturing cost in China.
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CCM Data & Primary Intelligence Native starch industry plays a key role in development of the whole starch industry, as it is crucial in guaranteeing downstream production like modified starch and related derivatives. Domestic raw material supply can meet the demand from native starch production except cassava, which is a strong support for improving the competitiveness of China’s native starch industry. Native starch deep processing industry is the most important end user of native starch in China, consuming XX million tonnes of native starch in XX. Besides, native starch is also used in other downstream industries such as food processing, papermaking and beverage. With abundant raw material supply and lower manufacturing cost, corn starch has become the most important native starch variety in China. The corn starch output had jumped to XX million tonnes in XX from XX million tonnes in XX, with CAGR of XX%. With stricter environmental protection requirement, small scale manufacturers with little investment in environmental protection have been gradually phased out. Owing to low price and cheap transportation cost, China’s corn starch is quite competitive in Eastern Asia and Southeast Asia. Other native starch varieties, such as cassava starch, potato starch and wheat starch, have much smaller market than corn starch due to various reasons. Potato starch has the second largest output among all native starches in China in XX, accounting for XX% of total native starch output. China has to import a large volume of cassava and cassava starch from Thailand and Vietnam every year to meet domestic demand. Wheat starch has the fourth largest output among all native starches in China, accounting for XX% of total native starch output. China has become the second largest modified starch production base in the world, following the U.S. With increasing demand in China, output of modified starch in China reached XX million tonnes in XX. Corn modified starch takes up the largest proportion in modified starch industry in China, XX% in XX, mainly thanks to abundant raw material supply and lower manufacturing cost. Although state-owned modified starch producers still dominate domestic market, more and more foreign investment has stretched to the market in recent years. Global financial crisis has hit the downstream industries such as papermaking and textile industry, causing price drop of modified starch in China since Q3 XX. Papermaking, food and textile are the most important downstream industries of modified starch, accounting for XX% of total consumption volume in XX. In XX-XX, China’s import volume of modified starch was larger than the export volume.
Character of CCM' Report: The aim of this report is to provide powerful assistance to the strategy group and the management team in making correct decision as how to penetrate the ever-increasing China market and how to catch the maximum commercial opportunities. The report is formulated independently by CCM’s professional market researchers, based on the first-hand and primary data which are analyzed by scientific methodology, confirmed with both manufacturers/end users/traders and legal authorities, and presented in a logic way.
Sample pages：
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……… I-3 Overview of China’s starch industry -
Overview
China is very important to global starch development, since China is the second largest native and modified starch producer in the world, following U.S. There are many kinds of native starches and modified starches in China. As to native starch, the major products are corn starch, potato starch, cassava starch, wheat starch. As to modified starch, according to different raw materials, major products are corn modified starch, potato modified starch and cassava modified starch. Table I-3.1 Output of different kinds of starch in China, 2004-2008 Year
Corn starch
Cassava starch
Potato starch
Wheat starch
Modified starch
Dx
Dx
Dx
Dx
Dx
Dx
Dx
Dx
Dx
Dx
Dx
Dx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Xx
Source: CCM International
-
Current situation
¾
Native starch
China is the second largest starch producing country in the world, next only to the U.S. In 2008 the output volume of native starch was xx million tonnes. The major starches in China are corn starch, potato starch, cassava starch, wheat starch, and rice starch. Among them, the most important is corn starch, accounting for Xx% of the total native starch output by volume. China’s corn starch is exported to many countries, but potato starch and cassava starch depend much on importing. ……….. III-3.4 Manufacturing cost structure Manufacturing cost structure of corn starch includes following factors: Variable cost √ Corn √ Water √ Electricity √ Labor
Fixed cost √ Depreciation √ Maintenance √ Waste treatment √ Management fee Manufacturing cost has differences in different areas. Even the charge of water and electricity varies among different regions. Since Shandong is biggest production province of corn starch in China, the representative manufacturing cost structure in Shandong Province will be analyzed. Table III-3.4.1 Manufacturing cost structure of corn starch in Shandong, Oct. 2009 Unit Consumption for one tonne corn Items
Unit price
Unit cost (USD/t) starch
Variable cost
Fixed cost
Corn
xx
xx
xx
Water
xx
xx
xx
Electricity
xx
xx
xx
Labor
xx
xx
xx
Depreciation
xx
Maintenance
xx
Waste treatment
xx
Other (Management fee, tax, etc.)
xx
Total cost Source: CCM International
…………
xx