China Council for the Promotion of International Trade (ccpit) 2009 Preface

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 1.225 billion yuan, a year-on-year increase of 23.45%. The total asset value reached 836.269 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 6.964 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 972.028 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 8 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 296.532 billion yuan in February of 2008, a year-on-year increase of 39.61%. The cumulative output value reached 2103.119 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 85.963 billion yuan of manufactured products in February of 2008, and reached up to 98.891 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.

Figure 4 9 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 6.977 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 6.434 billion yuan and 3.911 billion yuan respectively, year-on-year increases of 36.62% and 32.53%. The cumulative management expenditure and financial costs reached up to 36.073 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 10 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

Source of the data: China National Light Industry Council

4.2.4 Profit-Earning

In February of 2008, the cumulative profits of the agricultural and sideline food processing industry stood at 13.682 billion yuan, a year-on-year increase of 60.61%. The cumulative profits reached up to 79.841 billion yuan in November, a year-on-year increase of 20.75%. The industry saw a decline tendency in the growth rate of its profits in 2008. A total of 2,492 enterprises suffered loss in February of 2008, and the proportion of loss-suffering enterprises was 13.75%. There were 2,488 suffering loss in November and the proportion stood at 12.60%.

In November of 2008, the abattoir and meat processing industry formed the largest proportion, 19.48%, in sales costs of the industry, a year-on-year increase of 20.15%, followed by the grain grinding industry (18.55%) and the vegetable oil processing industry (14.64%). Following the aquatic product processing industry and other agricultural and sideline product processing industry, the sugar manufacturing industry accounted for the minimum of 1.57%, a year-on-year decrease of 71.16%. The abattoir and meat processing industry formed the largest proportion, 17.04%, in the number of loss-suffering enterprises in the industry, a year-on-year increase of 13.70%, followed by the aquatic product processing industry (14.43%) and the feed processing industry (14.31%). 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 5.67%, a year-on-year increase of 46.84%. The vegetable oil processing industry formed the largest proportion, 21.57%%, in the total loss suffered by the industry, a year-on-year increase of 427.39%, and was followed by the sugar manufacturing industry (17.73%) and the abattoir and meat processing industry (17.39%). Following the feed processing industry (7.67%) and other agricultural and sideline product processing industry (9.68%), the grain grinding industry accounted for the minimum of 4.70%, a year-on-year increase of 26.78%.

Figure 4 11 Profit-earning of the agricultural and sideline food processing industry

Units: 100 million yuan, %

time	Cumulative profits	Year-on-year increase	Number of loss-suffering enterprises	Percentage of loss-suffering enterprises	Enterprises’ loss	Year-on-year increase
2007-02	81.83	29.39	2498	15.55	10.24	1.74
2007-05	237.78	35.54	2603	15.78	21.09	-12.00
2007-08	435.75	42.47	2553	15.03	29.50	-12.95
2007-11	668.27	49.53	2293	12.96	34.13	-10.80
2008-02	136.82	60.61	2494	13.75	12.25	23.45
2008-05	382.09	59.16	2535	13.63	24.25	16.73
2008-08	622.92	43.57	2526	13.16	39.82	38.48
2008-11	798.41	20.75	2488	12.60	69.64	112.53
Grain grinding	146.45	49.52	314	6.53	3.27	26.78
Feed processing	114.56	54.37	356	12.47	5.34	-4.69
Vegetable oil processing	115.56	-0.76	320	16.34	15.02	427.39
Sugar manufacturing	12.36	-71.16	141	46.84	12.35	267.40
abattoir and meat processing	153.75	20.15	424	13.70	12.11	86.15
aquatic products processing	79.46	34.52	359	17.44	7.66	27.77
vegetable, fruit and nut processing	77.40	19.31	288	10.93	7.14	218.72
other agricultural and sideline food processing	98.88	27.00	286	14.07	6.74	85.71

Source of the data: China National Light Industry Council

5. Operation performance

In February 2008, the product sales revenue growth of agricultural and sideline food processing industry stood at 41.57%, up by 13.25 percentage points on a year-on-year basis. In November, the product sales revenue growth was 35.70%, up by 0.76 percentage point on a year-on-year basis. In February 2008, the value-added ratio of capital maintenance was 128.65%, up by 5.78 percentage points on a year-on-year basis. In November, the ratio became 119.72%, down by 5.53 percentage points on a year-on-year basis. In February 2008, the asset-liability ratio of agricultural and sideline food processing industry was 57.44%, down by 0.92 percentage point on a year-on-year basis. In November, the asset-liability ratio was 57.46%, down by 0.18 percentage point on a year-on-year basis. In February 2008, the net amount growth rate of accounts receivable was 19.06%, down by 0.17 percentage point on a year-on-year basis. In November, the rate was 17.08%, down by 4.29 percentage points.

Figure 4 12 Operation performance of household appliance manufacturing industry

Unit: 100 million RMB, %

Time	Sales revenue Growth rate	Year-on-year increase or decrease	Value-added ratio of capital maintenance	Year-on-year increase or decrease	Asset-liability ratio	Year-on-year increase or decrease	net amount growth rate of accounts receivable	Year-on-year increase or decrease
2007-02	28.32	2.32	122.87	-2.3	58.36	-1.15	19.23	6.83
2007-05	30.45	3.88	121.64	-3.56	58.55	-0.42	20.07	3.1
2007-08	33.01	8.21	121.5	-2.88	57.69	-0.82	24.12	6.51
2007-11	34.94	10.96	125.25	2.09	57.64	-0.56	21.37	0.15
2008-02	41.57	13.25	128.65	5.78	57.44	-0.92	19.06	-0.17
2008-05	42.85	12.4	124.73	3.09	58.94	0.39	24.46	4.39
2008-08	40.95	7.94	125.42	3.92	58.87	1.18	18.13	-5.99
2008-11	35.7	0.76	119.72	-5.53	57.46	-0.18	17.08	-4.29

Source: China National Light Industry Council

5. Investment in fixed assets

The cumulative investment in fixed assets of agricultural and sideline food processing industry in 2008 approached 205.8 billion yuan, up by 25.03% on a year-on-year basis. In February, the cumulative investment in fixed assets was 7.4 billion yuan, up by 32.14% on a year-on-year basis, the highest speed throughout the year. In March, the cumulative investment in fixed assets stood at 20.8 billion yuan, up by 16.20% on a year-on-year basis which was relatively low. In general, the investment in fixed assets of agricultural and sideline food processing industry kept a high growth on a year-on-year basis.

Figure 4 13 Investment in fixed assets of agricultural and sideline food processing industry

Unit: 100 million RMB, %

Time	Cumulative aggregate investment amount	Amount over the same period last year	Year-on-year increase
2008-02	74	56	32.14
2008-03	208	179	16.20
2008-04	331	280	18.21
2008-05	503	427	17.80
2008-06	795	677	17.43
2008-07	1012	846	19.62
2008-08	1208	987	22.39
2008-09	1418	1136	24.82
2008-10	1608	1271	26.51
2008-11	1827	1449	26.09
2008-12	2058	1646	25.03

Source: China's National Bureau of Statistics

5. Production and sales by region

In 2008, Shandong was on the top of total industrial output of agricultural and sideline food processing industry, which was 533.693 billion yuan, accounting for 25.38% of China's total output, up by 44.10% on a year-on-year basis. The total output value of Henan was 194.513 billion yuan, accounting for 9.25%, up by 42.43% on a year-on-year basis. The total output value of this industry was relatively large in Liaoning, Jiangsu and Guangdong. The total output value and sales value were small in Tibet, Ningxia, Guizhou and Hainan. In this year, Tibet ranked the first in China in sales-output ratio of 155.93%, followed by Xinjiang, Beijing, Heilongjiang. The ratio of Gansu was 71.71% as the lowest in China. Guizhou, Ningxia, Jilin and Shaanxi had a relatively low sales-output ratio.

Figure 4 14 Sales-output distribution of agricultural and sideline food processing industry

Unit: 100 million RMB, %

Region	Total industrial output value			Industrial sales value			Sales-output ratio
	Actual value	Year-on-year increase	Proportion	Actual value	Year-on-year increase	Proportion	%
China	21031.19	35.95	100.00	20437.16	35.70	100.00	97.18
Beijing	205.70	26.71	0.98	222.03	28.12	1.09	107.94
Tianjin	263.75	56.04	1.25	255.49	46.87	1.25	96.87
Hebei	929.96	38.94	4.42	915.05	38.35	4.48	98.40
Shanxi	89.59	19.75	0.43	86.87	23.25	0.43	96.97
Inner Mongolia	490.05	44.32	2.33	465.89	44.00	2.28	95.07
Liaoning	1415.51	51.94	6.73	1363.36	52.30	6.67	96.32
Jilin	820.21	59.07	3.90	764.79	55.08	3.74	93.24
Heilongjiang	525.20	35.33	2.50	534.95	38.43	2.62	101.86
Shanghai	259.51	40.60	1.23	274.06	31.68	1.34	105.61
Jiangsu	1376.60	36.64	6.55	1354.77	35.93	6.63	98.41
Zhejiang	551.95	16.53	2.62	541.99	18.83	2.65	98.20
Anhui	586.65	54.55	2.79	550.39	55.59	2.69	93.82
Fujian	681.66	33.21	3.24	649.80	29.97	3.18	95.33
Jiangxi	308.13	44.10	1.47	306.62	44.19	1.50	99.51
Shandong	5336.93	24.69	25.38	5202.61	27.39	25.46	97.48
Henan	1945.13	42.43	9.25	1901.30	35.39	9.30	97.75
Hubei	640.55	53.04	3.05	608.10	56.55	2.98	94.93
Hunan	663.14	46.24	3.15	633.96	47.60	3.10	95.60
Guangdong	1295.65	31.72	6.16	1247.56	25.72	6.10	96.29
Guangxi	668.44	35.25	3.18	658.52	37.16	3.22	98.52
Hainan	60.26	17.34	0.29	58.73	15.00	0.29	97.45
Chongqing	173.18	40.62	0.82	165.68	41.64	0.81	95.67
Sichuan	1080.45	42.53	5.14	1046.83	45.23	5.12	96.89
Guizhou	50.61	23.28	0.24	46.09	25.73	0.23	91.08
Yunnan	154.62	22.14	0.74	151.27	21.72	0.74	97.83
Tibet	0.78	14.76	0.00	1.22	105.91	0.01	155.93
Shaanxi	194.30	35.20	0.92	182.70	35.98	0.89	94.03
Gansu	98.99	30.08	0.47	70.98	22.73	0.35	71.71
Qinghai	9.46	29.57	0.04	9.16	44.62	0.04	96.85
Ningxia	23.95	12.31	0.11	23.04	16.09	0.11	96.18
Xinjiang	130.28	25.78	0.62	143.32	32.72	0.70	110.00

Source: China National Light Industry Council

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