Plan for Grain Processing Industry Development 2011-2020 was published on 24 Feb. 2012, pointing out the development direction for corn deep-processing industry.

1. Plan for Grain Processing Industry Development 2011-2020 Issued in Feb. 2012
Summary: Plan for Grain Processing Industry Development 2011-2020 was published on
24 Feb. 2012, pointing out the development direction for corn deep-processing industry.
Tags: corn deep-processing, grain processing, supply, corn starch, corn product, consumption
volume, development
On 24 Feb. 2012, the Ministry of Industry and Information Technology of China and the Ministry
of Agriculture of China co-issued a Plan for Grain Processing Industry Development 2011-2020
(the Grain Plan), which points out the development direction for corn deep-processing industry in
the future, according to CCM International’s March issue of Corn Products China News.
In accordance with the Grain Plan, China's grain processing industry achieved a great growth
from 2005 to 2010: its total output value reached USD412.7 billion in 2010, surging by 70% over
that in 2005. Besides, the number of large and powerful enterprises also enjoyed an increase: the
number of producers with wheat processing volume over 400 tonnes per day reached 427 in
2010, 3.1 times of that in 2005. Besides, the proportion of top 10 corn deep-processing
enterprises' sales revenue among total in the industry reached 38% in 2010. However, there were
still problems in grain processing industry, such as unreasonable industrial structure: lots of small
producers are with inferior production capacity; unsatisfactory quality guarantee system and poor
capability of research and innovation.
In view of the current development situation in grain processing industry and the prediction of
domestic and global economy in the next few years, the Grain Plan points out some specific
goals for the industry's development by 2015 and 2020: the total output value shall reach
USD619.0 billion and USD1,095.2 billion by 2015 and 2020 respectively; the supply of grain for
edible use shall be no less than 257.5 million tonnes and 252.5 million tonnes by 2015 and 2020
separately; the supply of grain for feed use shall be no less than 200.0 million tonnes and 227.5
million tonnes by 2015 and 2020 respectively.
In order to achieve the goals mentioned above, the Grain Plan proposes some detailed
development direction for grain processing industry, and the following will be the focuses of corn
deep-processing industry.

2. Firstly, to eliminate inferior production capacities and encourage leading enterprises to develop
further, increasing industry concentration. Moreover, the Grain Plan specifically pointed out that
by 2020, 3 million t/a capacity of corn starch shall be eliminated, accounting for 10.6% in its total
domestic capacity in 2010.
Secondly, to restrain the capacity expansion of some corn products, such as monosodium
glutamate, citric acid, lysine, threonine, tryptophan and alcohol; to stably develop starch sugar
and sugar alcohol industries; to encourage the development of some enzymic preparations,
organic acids and functional starch sugar all with high added value. In addition, the Grain Plan
definitely encourages using non-grain raw materials to replace corn for production of the above
products.
Thirdly, corn's supply shall be preferentially guaranteed for edible use and feed use, instead of
industrial use, and the proportion of corn's consumption in deep-processing industry among total
shall be limited to a reasonable level, which is suggested to be less than 26%.
Finally, foreign investors shall be restrained to enter into corn deep-processing industry. In fact, in
2010, the proportion of corn processing volume of foreign-owned companies among total was
26%, while those of private-owned and state-owned companies was 66% and 8% respectively.
And the proportion of foreign-owned companies shall be further reduced in the future, in order to
better control corn's consumption volume in deep-processing industry.
What's more important, the Grain Plan proposes some specific measures to guarantee corn
deep-processing industry to develop toward the above direction. For example, to strengthen
supervision and increase the threshold for entrance, to intensify financial support for leading
enterprises or small and medium-sized enterprises with advanced production technology or high
added value products and promising prospect; to exempt the import tax of some equipment that
can't be manufactured at home for governmentally encouraged grain processing industry. These
measures will positively help corn deep-processing industry in the future, if they are implemented
effectively.
As a whole, the Grain Plan does not provide new ideas for corn deep-processing industry, without
obvious effect on the industry in the short term, but it will work better for a long term, just like
other related policies did, such as the 2011 edition of Catalogue of Industries for Guiding Foreign
Investment, and the 12th Five-Year Plan for Food Industry. Overall, these policies definitely
pointed out the development direction for the industry, and future regulations will be in line with

3. these policies, so as to guarantee corn deep-processing industry to head toward the direction
ruled within them.
Source: Corn Product China News 1203
http://www.cnchemicals.com/Newsletter/NewsletterDetail_6.html
Content of Corn Products China News 1203:
7.8%, domestic output of MSG enjoys an increase in 2011
Both import and export volumes of PLA in China increase in 2011
HFCS' consumption in China expected to increase in 2012
Import volume of L-phenylalanine in China increases by 48.8% in 2011
Chinese corn products Imp. & Exp. analysis in January 2012
Domestic furfural price increases slightly in March 2012
Domestic prices of four key amino acids perform differently in March 2012
Plan for Grain Processing industry Development 2011-2020 issued in Feb. 2012
Analysis into domestic lysine's market in 2011
Xiwang Sugar plans to increase corn starch and corn germ's supply to Xiwang Group related
companies
Domestic potato industry expected to develop fast in the next few years
Domestic corn price heads up in March 2012
Corn Products China News, a monthly publication issued by CCM International on 20th of every
month, reveals the driving force of news stories and deeply analyzes the influence of trends and
dynamics on domestic and international corn deep processing industry.
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Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1008.html