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



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Food manufacturing industry

      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 15 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
      1. Production and Sales


The total output value of food manufacturing industry reached 105.313 billion yuan in February 2008, up by 32.38% on a year-on-year basis. The cumulative output value was 699.707 billion yuan in November, a year-on-year increase of 30.37%. The sales value of food manufacturing industry stood at 101.747 billion yuan, a year-on-year increase of 31.68%. The cumulative sales value was 666.210 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 26.708 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 7.458 billion yuan in November, up by 32.21% on a year-on-year basis. Bakery food manufacturing generated a low goods scale of 2.804 billion yuan, but grew very fast at 56.04%.

Figure 4 16 Production and sales of food manufacturing industry

Unit: 100 million RMB, %



Time

The cumulative

output


Year-on-year increase

The cumulative sales value

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
      1. Costs and expenses


The sales costs of food manufacturing industry in February 2008 were 81.506 billion yuan, up by 34.74% on a year-on-year basis. The cumulative sales costs reached 535.931 billion yuan in November, up by 28.73% on a year-on-year basis. The sales expense in February approached 7.882 billion yuan, up by 16.16% on a year-on-year basis. The cumulative sales expense in November was 61.970 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 3.450 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 15.464 billion yuan and 4.675billion 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 3.477 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 1.147 billion yuan, accounting for 23.53%, up by 1216 on a year-on-year basis. The financial expense of liquid milk and dairy product manufacturing was small.

Figure 4 17 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

Source: China National Light Industry Council
      1. Profits


In February 2008, the cumulative profits of food manufacturing industry reached 6.768 billion yuan, up by 38.98% on a year-on-year basis. In November, the cumulative profits were 39.346 billion yuan, up by 26.88% on a year-on-year basis. The profit growth of food manufacturing industry declined in 2008. In February, 1,270 enterprises or 19.24% of all the companies suffered losses. In November, the cumulative number of enterprises in the red was 1,194 or 16.81% of all the companies. In February, the total loss reached 826 million yuan, up by 23.72% on a year-on-year basis. In November, the cumulative loss stood at 3.592 billion yuan, up by 19.05% on a year-on-year basis.

In November 2008, seasoning and fermented goods manufacturing realized the most profit of 6.374 billion yuan, accounting for 16.20% and up by 46.78% on a year-on-year basis. The profits of instant food manufacturing and bakery food manufacturing were large. The profits of canning were small. Seasoning and fermented goods manufacturing and candy, chocolate and preserved food manufacturing both saw a fast year-one-year growth.

Liquid milk and dairy product manufacturing saw relatively more loss-suffering enterprises of 214 with a scale proportion of 17.2%. Candy, chocolate and preserved food manufacturing had the least loss-suffering enterprises. The year-on-year growth of loss-suffering enterprise numbers were fast in liquid milk and dairy product manufacturing but slow in candy, chocolate and preserved food manufacturing. Liquid milk and dairy product manufacturing enterprises suffered a relatively large amount of loss of 1.384 billion yuan, increasing sharply by 192.95% on a year-on-year basis. The year-on-year increase of loss amount in candy, chocolate and preserved food manufacturing, seasoning and fermented goods manufacturing and other food manufacturing dropped fast.

Figure 4 18 Profits of food manufacturing industry

Unit: 100 million RMB, %


Time

The cumulative

profits


Year-on-year

increase


Number of loss-suffering enterprises

Percentage of loss-suffering enterprises

Enterprises’ total loss

Year-on-year

increase


2007-02

48.16

28.03

1221

20.71

6.90

12.47

2007-05

127.04

35.37

1225

20.22

16.62

28.28

2007-08

211.32

37.11

1234

19.82

25.90

19.87

2007-11

314.14

33.20

1087

16.82

31.46

18.37

2008-02

67.68

38.98

1270

19.24

8.26

23.72

2008-05

183.05

45.38

1249

18.46

14.23

-11.15

2008-08

302.05

45.01

1216

17.57

20.74

-19.81

2008-11

393.46

26.88

1194

16.81

35.92

19.05

Of which: Bakery food manufacturing

52.16

43.12

153

14.18

3.61

20.68

Candy, chocolate and preserved food manufacturing

44.94

46.31

77

12.94

1.64

-43.63

Instant food manufacturing

62.85

36.43

151

14.65

3.99

44.34

Liquid milk and dairy product manufacturing

43.73

-28.12

214

28.31

13.84

192.95

Canning

19.68

64.01

162

19.49

2.05

-8.95

Seasoning and fermented goods manufacturing

63.74

46.78

150

15.34

4.84

-40.35

Other food manufacturing

106.35

31.93

287

15.67

5.95

-7.33

Source: China National Light Industry Council
      1. Operation performance


In February 2008, the product sales revenue of food manufacturing industry grew at 31.68%, up by 4.72 percentage points on a year-on-year basis. In November, the product sales revenue grew at 28.51%, down by 0.58 percentage point on a year-on-year basis. In February 2008, the value-added ratio of capital maintenance was 114.21%, down by 3.43 percentage points on a year-on-year basis. In November, the ratio became 118.38%, up by 1.62 percentage point on a year-on-year basis. In February 2008, the asset-liability ratio of food manufacturing industry was 55.41%, up by 0.09 percentage point on a year-on-year basis. In November, the asset-liability ratio was 55.82%, up by 0.16 percentage point on a year-on-year basis. In February 2008, the net amount growth rate of accounts receivable was 22.69%, up by 6.15 percentage points on a year-on-year basis. In November, the rate was 19.91%, up by 3.55 percentage points on a year-on-year basis.

Figure 4 19 Operation performance of food 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

26.96

-4.79

117.64

2.79

55.32

-0.59

16.54

0.77

2007-05

27.88

-2.96

117.2

-4.53

55.43

0.08

20.78

5.46

2007-08

29.37

0.53

116.89

-4.28

55.70

0.11

18.43

4.28

2007-11

29.09

2.96

116.76

1.20

55.66

-0.07

16.36

1.78

2008-02

31.68

4.72

114.21

-3.43

55.41

0.09

22.69

6.15

2008-05

33.48

5.60

115.99

-1.21

55.81

0.38

13.84

-6.94

2008-08

31.90

2.53

112.22

-4.67

58.01

2.31

18.8

0.37

2008-11

28.51

-0.58

118.38

1.62

55.82

0.16

19.91

3.55

Source: China National Light Industry Council
      1. Investment in fixed assets


The cumulative investment in fixed assets of food manufacturing industry in 2008 approached 113.72 billion yuan, up by 17.63% on a year-on-year basis. In February, the cumulative investment in fixed assets was 4.53 billion yuan, up by 33.24% on a year-on-year basis, at the highest speed throughout the year. In March the cumulative investment in fixed assets reached12.82 billion yuan increasing slowly by 16.02% on a year-on-year basis. This industry in 2008 kept a stable development in investment in fixed assets on the whole.

Figure 4 20 Investment in fixed assets of food manufacturing industry

Unit: 100 million RMB, %


Time

Cumulative aggregate

investment amount



Amount over the same period last year

Year-on-year increase

2008-02

45.3

34.0

33.24

2008-03

128.2

110.5

16.02

2008-04

213.9

169.6

26.12

2008-05

310.4

261.8

18.56

2008-06

474.5

398.8

18.98

2008-07

589.5

499.5

18.02

2008-08

692.1

584.4

18.43

2008-09

799.5

672.7

18.85

2008-10

906.8

741.0

22.38

2008-11

1020.4

841.1

21.32

2008-12

1137.2

966.8

17.63

Source: China's National Bureau of Statistics
      1. Production and sales by region


In 2008, Shandong was on the top of total industrial output of food manufacturing industry, which was138.003 billion yuan, accounting for 19.72% of China's total output, up by 25.69% on a year-on-year basis. The total output value of Henan was 73.5 billion yuan, accounting for 10.50%, up by 46.19% 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, Beijing ranked the first in China in sales-output ratio of 126.16%, followed by Hainan, Shanghai and Tibet. The ratio of Tianjin was 67.78% as the lowest in China. Gansu, Shanxi and Shaanxi had a relatively low sales-output ratio.

Figure 4 21 Sales-output distribution of food manufacturing 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

6997.07

30.37

100

6662.10

28.51

100

95.21

Beijing

135.22

8.11

1.93

170.60

17.71

2.56

126.16

Tianjin

186.59

128.83

2.67

126.46

48.93

1.90

67.78

Hebei

362.23

14.32

5.18

352.28

13.98

5.29

97.26

Shanxi

55.31

25.01

0.79

42.77

12.49

0.64

77.34

Inner Mongolia

437.60

27.67

6.25

410.45

24.05

6.16

93.80

Liaoning

229.35

44.48

3.28

223.87

43.21

3.36

97.61

Jilin

126.60

39.22

1.81

113.72

38.08

1.71

89.82

Heilongjiang

231.18

34.65

3.30

221.01

34.51

3.32

95.60

Shanghai

298.62

19.07

4.27

343.07

24.05

5.15

114.89

Jiangsu

271.65

20.06

3.88

264.60

21.43

3.97

97.40

Zhejiang

257.56

22.48

3.68

246.10

19.65

3.69

95.55

Anhui

165.31

29.09

2.36

145.70

21.60

2.19

88.13

Fujian

308.88

29.52

4.41

295.02

28.88

4.43

95.51

Jiangxi

119.07

52.14

1.70

117.81

58.00

1.77

98.94

Shandong

1380.03

25.69

19.72

1356.05

28.73

20.35

98.26

Henan

735.04

46.19

10.50

646.15

35.07

9.70

87.91

Hubei

165.79

46.00

2.37

154.13

45.98

2.31

92.97

Hunan

241.05

30.54

3.45

227.68

30.62

3.42

94.45

Guangdong

651.08

23.01

9.31

616.21

20.95

9.25

94.65

Guangxi

60.14

48.36

0.86

48.67

45.70

0.73

80.92

Hainan

18.81

15.85

0.27

22.28

27.28

0.33

118.49

Chongqing

49.30

47.60

0.70

50.85

38.41

0.76

103.13

Sichuan

234.10

49.77

3.35

220.59

53.32

3.31

94.23

Guizhou

32.07

33.99

0.46

28.84

36.22

0.43

89.95

Yunnan

28.19

32.66

0.40

29.04

41.66

0.44

103.01

Tibet

0.71

-17.15

0.01

0.76

2.09

0.01

107.40

Shaanxi

95.32

13.99

1.36

82.85

23.21

1.24

86.92

Gansu

22.63

13.07

0.32

17.03

4.42

0.26

75.25

Qinghai

4.28

17.91

0.06

3.66

19.08

0.05

85.64

Ningxia

31.80

32.17

0.45

29.89

26.29

0.45

93.98

Xinjiang

61.57

20.99

0.88

53.97

21.23

0.81

87.66

Source: China National Light Industry Council

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