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

Source: China National Light Industry Council

4.3 Food manufacturing industry

4.3.1 Overall Scale and Distribution

In February 2008, there were 6,600 enterprises in food manufacturing industry, with 129,900 employees, a year-on-year growth of 5.9%. The total assets value reached 415.9 billion yuan, up by 15.24% on a year-on-year basis. The total indebtedness was 230.4 billion yuan, up by 16.09% on a year-on-year basis. The total indebtedness grew obviously faster than the total assets value. In January to November 2008, there were 7,101 enterprises in food manufacturing industry, with 139,800 employees, up by 5.67% on a year-on-year basis. The total assets value reached 483.4 billion yuan, up by 16.76% on a year-on-year basis. The total indebtedness was 269.8 billion yuan, up by 15.5% on a year-on-year basis.

In November 2008, the number of bakery product manufacturing enterprises peaked at 1,079, accounting for 15.20% in food manufacturing industry. Instant food manufacturing enterprises were 1,031, accounting for 14.52%. The enterprise numbers of candy, chocolate and preserved fruit manufacturing were relatively small. Instant food manufacturing enterprises employed as many as 25,500 people in November, down by 0.14% on a year-on-year basis. Bakery product manufacturing enterprises employees accounted for 14.95%, up by 11.32% on a year-on-year basis. Liquid milk and dairy product manufacturing took a large proportion in total assets. It reached 97.5 billion yuan, up by 19% on a year-on-year basis, accounting for 20.17%. The proportion of the total assets value of seasoning and fermented goods was 17.73%. Candy, chocolate and preserved fruit manufacturing accounted for 7.14% in total assets. Liquid milk and dairy product manufacturing had a heavy debt of 156.4 billion yuan in November, accounting for 20.90%, up by 28.41% on a year-on-year basis. Seasoning and fermented goods enterprises had a total debt of 49.3 billion yuan, up by 2.1% on a year-on-year basis, accounting for 18.27%. Candy, chocolate and preserved fruit manufacturing had small total debts of 6.14% of the industry.

Figure 4-13 Scale of food manufacturing industry Unit: 10,000 persons, 100 million yuan, %

Time	Number of enterprises	Employed persons	Year-on- year increase	Total assets value	Year-on-year increase	Debt	Year-on- year increase
2007-02	5895	12.37	7.65	3636	16.75	2011	16.05
2007-05	6058	12.80	6.61	3868	18.53	2144	19.63
2007-08	6227	13.05	6.35	4020	17.59	2240	18.15
2007-11	6462	13.38	6.47	4142	17.59	2306	18.25
2008-02	6600	12.99	5.90	4159	15.24	2304	16.09
2008-05	6767	13.38	5.21	4446	16.42	2481	16.77
2008-08	6921	13.73	5.75	4626	16.56	2684	19.91
2008-11	7101	13.98	5.67	4834	16.76	2698	15.5
Of which: Bakery food manufacturing	1079	2.09	11.32	440	19.62	222	12.87
Candy, Chocolate and preserved food manufacturing	595	1.13	10.82	345	18.64	173	13.26
Instant food manufacturing	1031	2.55	-0.14	672	15.7	347	14.22
Liquid milk and dairy product manufacturing	756	2.10	2.82	975	19	564	28.41
Canning	831	1.54	2.56	399	15.52	232	7.67
Seasoning and fermented goods manufacturing	978	1.92	6.5	857	9.96	493	2.1
Other food manufacturing	1831	2.64	8.95	1146	19.79	667	22.39

Source: China National Light Industry Council

4.3.2 Production and Sales

The total output value of food manufacturing industry reached 105.31 billion yuan in February 2008, up by 32.38% on a year-on-year basis. The cumulative output value was 699.71 billion yuan in November, a year-on-year increase of 30.37%. The sales value of food manufacturing industry stood at 101.75 billion yuan, a year-on-year increase of 31.68%. The cumulative sales value was 666.21 billion yuan in November, a year-on-year increase of 28.51%. The sales-output ratio of food manufacturing industry was 96.61% in February, declining slightly to 95.21% in November. The manufactured products of this industry valued 26.71 billion yuan of in February, up by 22.63% on a year-on-year basis, and increased to 38.876 billion yuan in November, up by 33.82% on a year-on-year basis.

In November 2008, the output value of liquid milk and dairy product manufacturing accounted for the largest proportion of the total industry, reaching 20.34%, followed by instant food manufacturing (15.86%) and seasoning and fermented goods manufacturing (14.91%). The total output of canning grew at 33% and instant food manufacturing 30.26% in this month. Candy, chocolate and preserved food manufacturing saw a high sales-output ratio, but the sales-output ratio of other food manufacturing was relatively low at 92.26%. The manufactured goods of canning sector took a large proportion, reaching 7.46 billion yuan in November, up by 32.21% on a year-on-year basis. Bakery food manufacturing generated a low goods scale of 2.80 billion yuan, but grew very fast at 56.04%.

Figure4-14 Production and sales of food manufacturing industry Unit: 100 million RMB, %

Time	The cumulative output	Year-on -year increase	The cumulative Sale svalue	Year-on -year increase	Sales -output ratio	Manufactured products	Year-on -year increase
2007-02	805.42	27.65	777.90	26.96	96.58	220.97	15.51
2007-05	2191.53	27.46	2126.11	27.88	97.01	244.63	19.70
2007-08	3781.60	29.65	3637.57	29.37	96.19	274.73	18.78
2007-11	5452.56	28.84	5229.63	29.09	95.91	286.74	19.41
2008-02	1053.13	32.38	1017.47	31.68	96.61	267.08	22.63
2008-05	2904.93	34.47	2811.28	33.48	96.78	300.49	20.72
2008-08	4963.98	33.12	4753.39	31.90	95.76	345.36	28.42
2008-11	6997.07	30.37	6662.10	28.51	95.21	388.76	33.82
Of which: Bakery food manufacturing	713.32	38.03	684.45	35.57	95.95	28.04	56.04
Candy, chocolate and preserved food manufacturing	463.06	24.50	468.48	29.44	101.17	33.05	34.04
Instant food manufacturing	1109.85	30.26	1081.97	28.60	97.49	43.66	16.51
Liquid milk and dairy product manufacturing	1423.55	19.61	1375.95	17.94	96.66	66.08	53.07
Canning	532.85	33.00	497.10	28.17	93.29	74.58	32.21
Seasoning and fermented goods manufacturing	1043.00	28.90	975.22	27.79	93.50	61.16	24.58
Other food manufacturing	1711.44	39.57	1578.93	36.31	92.26	82.18	33.12

Source: China National Light Industry Council

4.3.3 Costs and expenses

The sales costs of food manufacturing industry in February 2008 were 81.51 billion yuan, up by 34.74% on a year-on-year basis. The cumulative sales costs reached 535.93 billion yuan in November, up by 28.73% on a year-on-year basis. The sales expense in February approached 7.88 billion yuan, up by 16.16% on a year-on-year basis. The cumulative sales expense in November was 61.97 billion yuan, up by 25.86% on a year-on-year basis. In February 2008, the management expenses and financial costs of food manufacturing industry were 3.45 billion yuan and 97 million yuan respectively, up by 19.71% and 30.93% on a year-on-year basis. The cumulative management expenses and financial costs in November were 15.46 billion yuan and 4.67 billion yuan respectively, up by 23.77% and 36.54% on a year-on-year basis.

The sales costs of liquid milk and dairy product manufacturing in November 2008 accounting for 20.39%, the largest of the total industry, and up by 19.76% on a year-on-year basis, followed by instant food manufacturing (16.69%) and seasoning and fermented goods manufacturing (15.24%). The sales expense of liquid milk and dairy product manufacturing was also the highest of the industry, accounting for 30.18% and up by 23.49%, followed by instant food manufacturing (12.69%) and instant food manufacturing (8.47%). The management expense of liquid milk and dairy product manufacturing was 3.48 billion yuan, a relatively proportion of 19.16%. The management expense of seasoning and fermented goods manufacturing accounted for 15.28%. The management expense of instant food manufacturing's year-on-year increase was relatively slow. The financial expense of seasoning and fermented goods manufacturing was relatively large at 1.15 billion yuan, accounting for 23.53%, up by 1.216 on a year-on-year basis. The financial expense of liquid milk and dairy product manufacturing was small.

Figure4-15 Costs and expenses of food manufacturing industry Unit: 100 million RMB, %

Time	Sales costs	Year-on -year increase	Sales expense	Year-on -year increase	Management expense	Year-on -year increase	Financial costs	Year-on -year increase
2007-02	612.16	27.46	67.51	18.79	28.90	12.28	7.26	16.49
2007-05	1683.63	27.54	184.30	22.38	75.83	15.73	22.61	34.70
2007-08	2911.84	29.77	302.59	19.01	128.22	18.22	34.38	23.95
2007-11	4187.11	29.37	422.79	17.49	180.72	16.69	49.89	24.98
2008-02	815.06	34.74	78.82	16.16	34.50	19.71	9.70	30.93
2008-05	2240.71	34.22	265.72	21.81	92.90	26.26	26.21	29.74
2008-08	3801.10	31.63	445.61	24.83	154.64	23.77	46.75	36.54
2008-11	5359.31	28.73	619.70	25.86	227.52	27.24	61.49	23.00
Of which: Bakery food manufacturing	532.26	33.83	52.51	14.88	27.58	24.68	4.13	13.66
Candy, chocolate and preserved food manufacturing	346.77	29.96	46.41	16.02	20.90	25.56	3.74	50.48
Instant food manufacturing	894.63	28.63	78.63	29.23	29.13	18.04	8.19	16.11
Liquid milk and dairy product manufacturing	1092.77	19.76	187.00	23.49	43.59	32.78	6.05	11.15
Canning	425.30	27.81	19.38	19.22	14.08	20.08	8.17	29.77
Seasoning and fermented goods manufacturing	816.88	27.95	50.48	20.59	34.77	13.99	14.47	12.16
Other food manufacturing	1250.71	36.01	185.30	35.96	57.47	42.57	16.74	37.45