China Business Guide 中 国 商 务 指 南 2009 （The Light Industry）

F
igure4-1 Proportion of the trade surplus of China’s light industry in China’s total trade surplus Unit: %

4.2 Agricultural and Sideline Food Processing Industry

4.2.1 Overall Scale and Distribution

There were 18,139 enterprises in the agricultural and sideline food processing industry in February of 2008, with 249,400 employed persons. The number of employees witnessed an increase of 9.27%. The enterprises suffered a total loss of 1.23 billion yuan, a year-on-year increase of 23.45%. The total asset value reached 836.27 billion yuan, a year-on-year increase of 26.98%. From January to November of 2008, there had been 19,741 enterprises in the agricultural and sideline food processing industry, with 270,600 employed persons. The number of employees witnessed an increase of 7.28%. The enterprises suffered a total loss of 6.96 billion yuan, a year-on-year increase of 112.53%. The industry witnessed a faster growth in enterprises’ loss in 2008. The total asset value reached 972.029 billion yuan, a year-on-year increase of 18.16%. Grain grinding enterprises formed the largest proportion in the total number of enterprises in the industry, 24.34% in November, 2008. The abattoir and meat processing industry accounted for 15.68%, the feed processing 14.46%, the vegetable, fruit and nut processing industry 13.35%, and the aquatic products processing industry 10.43%. The abattoir and meat processing industry formed the largest proportion, 24.67%, in the number of employed persons in the agricultural and sideline food processing industry, followed by the aquatic products processing industry and the vegetable, fruit and nut processing industry. The feed industry formed the largest proportion, 21.57%, in enterprises’ loss. Vegetable oil processing enterprises and sugar manufacturers accounted for 17.73% and 17.39% respectively in the total loss. The abattoir and meat processing industry accounted for the largest proportion, 18.66%, in the total asset value, followed by the vegetable oil processing industry, the aquatic product processing industry and other agricultural and sideline food processing industry.

Figure 4-6 Scale of the Agricultural and Sideline Food Processing Industry Unit: 10,000 persons, 100 million yuan, %

time	Number of enterprises	Average annual number of employed persons	Year-on -year increase	Enterprises’ loss	Year-on -year increase	Total asset value	Year-on -year increase
2007-02	16066	22.82	10.92	10.24	1.74	6538.04	20.91
2007-05	16499	23.62	9.41	21.09	-12.00	6999.10	21.04
2007-08	16983	24.48	8.86	29.50	-12.95	7490.01	21.17
2007-11	17689	25.38	8.78	34.13	-10.80	8255.02	25.49
2008-02	18139	24.94	9.27	12.25	23.45	8362.69	26.98
2008-05	18592	25.47	8.03	24.25	16.73	9102.66	28.03
2008-08	19195	26.41	7.73	39.82	38.48	9578.69	27.64
2008-11	19741	27.06	7.28	69.64	112.53	9720.28	18.16
Grain grinding	4805	3.31	12.48	3.27	26.78	1170.07	23.59
Feed processing	2854	2.88	8.94	5.34	-4.69	1109.16	22.14
Vegetable oil processing	1958	2.06	9.8	15.02	427.39	1767.10	15.00
Sugar manufacturing	301	1.41	1.4	12.35	267.40	737.89	11.02
abattoir and meat processing	3096	6.68	5.88	12.11	86.15	1813.68	20.77
aquatic products processing	2058	4.24	2.85	7.66	27.77	1205.95	13.51
vegetable, fruit and nut processing	2636	3.37	8.86	7.14	218.72	729.86	16.96
other agricultural and sideline food processing	2033	3.11	9.38	6.74	85.71	1186.57	19.67

Source of the data: China National Light Industry Council

4.2.2 Production and Sales

The output value of the agricultural and sideline food processing industry stood at 296.53 billion yuan in February of 2008, a year-on-year increase of 39.61%. The cumulative output value reached 2103.12 billion yuan in November, a year-on-year increase of 35.95%. The sales volume of the agricultural and sideline food processing industry stood at 279.622 billion yuan in February of 2008, a year-on-year increase of 41.57%. The cumulative output value reached 2043.716 billion yuan in November, a year-on-year increase of 35.70%. The production/sales ratio of the industry stood at 94.30% in February of 2008, increasing to 97.18% in November. The industry rolled out 85.96 billion yuan of manufactured products in February of 2008, and reached up to 98.89 billion yuan in November, a year-on-year increase of 18.02%.

In November of 2008, the abattoir and meat processing industry formed the largest proportion, 20.35%, in the total output value, followed by the vegetable oil processing industry (19.09%), the feed processing industry (15.89%), the sugar manufacturing industry (2.46%) and the vegetable, fruit and nut processing industry and other agricultural and sideline food processing industries. During the same period, the vegetable oil processing industry formed the largest proportion, 23.57%, in the volume of manufactured products, followed by the abattoir and meat processing industry and the aquatic product processing industry. The feed processing industry witnessed fast growth in total output value and sales volume, while the sugar manufacturing industry boasted higher production/sales ratio and other agricultural and sideline food processing industry saw fast year-on-year growth in the total volume of manufactured products.

Figure4-7 Production and sales of the agricultural and sideline food processing industry Units: 100 million yuan, %

time	Cumulative output value	Year-on -year increase	Cumulative sales volume	Year-on -year increase	Production /sales ratio	Volume of Manufactured products	Year-on -year increase
2007-02	2111.09	27.11	1958.37	28.32	92.77	631.02	20.04
2007-05	6017.24	29.48	5747.70	30.45	95.52	728.58	22.74
2007-08	10575.50	31.48	10217.42	33.01	96.61	749.53	25.86
2007-11	15532.20	33.63	15139.44	34.94	97.47	825.72	34.07
2008-02	2965.32	39.61	2796.22	41.57	94.30	859.63	32.44
2008-05	8563.18	41.71	8218.79	42.85	95.98	1066.52	44.69
2008-08	14840.52	40.42	14402.56	40.95	97.05	1043.75	37.02
2008-11	21031.19	35.95	20437.16	35.70	97.18	988.91	18.02
Grain grinding	3253.91	41.86	3123.02	41.66	95.98	102.89	22.83
Feed processing	3342.83	45.80	3224.01	44.05	96.45	85.41	18.97
Vegetable oil processing	4013.92	42.54	4014.84	40.02	100.02	233.11	5.29
Sugar manufacturing	516.46	15.60	526.31	17.35	101.91	52.43	22.15
abattoir and meat processing	4278.98	33.79	4242.28	32.94	99.14	156.96	22.78
aquatic products processing	2118.77	15.22	2007.04	19.86	94.73	156.34	16.80
vegetable, fruit and nut processing	1478.22	32.86	1411.35	34.98	95.48	88.56	22.62
other agricultural and sideline food processing	2028.09	37.88	1888.31	35.79	93.11	113.20	34.61

Source of the data: China National Light Industry Council

4.2.3 Costs

In February of 2008, the sales costs of the agricultural and sideline food processing industry stood at 247.270 billion yuan, a year-on-year increase of 27.57%. The cumulative sales costs reached up to 1821.929 billion yuan in November, a year-on-year increase of 325.97%. The sales expenditure stood at 6.98 billion yuan in February, a year-on-year increase of 41.10%, and the cumulative sales expenditure was 61.2 billion yuan in November, a year-on-year increase of 36.20%. The management expenditure and financial costs were 6.43 billion yuan and 3.91 billion yuan respectively, year-on-year increases of 36.62% and 32.53%. The cumulative management expenditure and financial costs reached up to 36.07 billion yuan and 16.98 billion yuan, year-on-year increases of 28.17% and 27.66%.

In November of 2008, the abattoir and meat processing industry formed the largest proportion, 20.65%, in sales costs of the industry, a year-on-year increase of 18.25%, followed by the vegetable oil processing industry (20.23%) and the feed processing industry (15.98%). Following the vegetable, fruit and nut processing industry and other agricultural and sideline product processing industry, the sugar manufacturing industry accounted for the minimum of 2.54%, a year-on-year increase of 34.49%. During the same period, the grain grinding industry formed the largest proportion, 21.24%, in sales expenditure of the industry, a year-on-year increase of 42.29%, followed by the vegetable oil processing industry (21.19%) and the abattoir and meat processing industry (18.80%). Following the aquatic product processing industry and other agricultural and sideline product processing industry, the sugar manufacturing industry accounted for the minimum of 2.96%, a year-on-year increase of 28.06%. The abattoir and meat processing industry formed the largest proportion, 20.20%, in management expenditure of the industry, a year-on-year increase of 30.12%, followed by the feed processing industry (17.44%) and the aquatic product processing industry (16.65%). Following the vegetable, fruit and nut processing industry and the vegetable oil processing industry, the sugar manufacturing industry accounted for the minimum of 6.66%, a year-on-year increase of 14.18%. The abattoir and meat processing industry formed the largest proportion, 18.20%, in financial costs of the industry, a year-on-year increase of 34.05%, followed by the aquatic product processing industry (15.44%) and the grain grinding industry (14.09%). The vegetable, fruit and nut processing industry accounted for the minimum of 8.36%, a year-on-year increase of 44%, following the feed processing industry (9.24%) and the sugar manufacturing industry (10.31%).

Figure 4-8 costs of the agricultural and sideline food processing industry Units: 100 million yuan, %

time	Sales costs	Year-on -year increase	Sales expenditure	Year-on -year increase	Management expenditure	Year-on -year increase	Financial costs	Year-on -year increase
2007-02	1734.51	24.13	54.11	27.95	42.26	17.16	19.54	26.04
2007-05	5138.37	18.07	138.98	30.88	112.21	17.24	52.05	22.81
2007-08	9119.17	19.14	236.17	33.09	193.91	18.73	91.91	24.74
2007-11	13459.08	20.90	352.29	35.03	283.16	21.54	134.66	29.26
2008-02	2472.70	27.57	69.77	41.10	64.34	32.62	39.11	32.53
2008-05	7330.89	32.98	244.46	42.64	157.20	29.25	67.06	28.63
2008-08	12864.05	33.38	444.27	41.24	253.53	31.77	117.41	28.17
2008-11	18219.29	25.97	612.00	36.20	360.73	28.17	169.80	27.66
Grain grinding	2796.95	32.66	130.01	42.29	43.97	31.64	23.93	39.11
Feed processing	2911.54	28.45	82.02	44.70	62.92	30.94	15.69	33.48
Vegetable oil processing	3685.98	32.11	129.70	41.74	41.53	36.43	20.79	-4.39
Sugar manufacturing	462.88	34.49	18.14	28.06	24.01	14.18	17.51	49.36
abattoir and meat processing	3762.27	18.25	115.08	30.94	72.86	30.12	30.91	34.05
aquatic products processing	1765.77	1.62	30.80	19.30	44.47	16.65	26.22	22.99
vegetable, fruit and nut processing	1203.16	26.28	45.28	35.19	34.47	26.62	14.20	44.00
other agricultural and sideline food processing	1630.74	24.88	60.97	36.66	36.49	34.22	20.55	25.71