Rapid growth in China food machinery industry

   Date:2006/12/31

China’s food machinery was formed as an industry in the late 70s, early 80s last century. Through the development in 1980s, the food machinery realized a high growth. Nowadays, the food machinery industry has basically adapted to the need of Chinese food industry, and has become one of the 14 main mechanic industries in China.

During the 10th Five-Year Plan, Chinas food packing machine business kept a rapid and healthy growth. In 2001, the product sales was 35.3 billion RMB, while by the end of 2005, the industry sales reached 67.37 billion RMB, increasing 90.85%, with an average annual growth of 17.52%, above the average growth rate of the national machine industry of the same period.

In 2006, Chinas macroscopic economic situation is in ideal status. Food and packing machinery still keeps a rapid growth. It is anticipated that up till 2010, Chinas food and packing machinery production value will reach 80 billion RMB. The rapid growth of food industry provides precious opportunity for Chinas food machinery industry.

In 2005, the annual total amount of food and packing machinery export was 607 million US dollars, a 31.4% increase compared with 2001. Main export regions are Asia, Europe, North America, Africa, Oceania and Latin America etc. As for import, the total amount in 2005 was about 2 billion US dollars, a 35.75% increase compared with 1.473 billion in 2001, the increase was obviously decelerated.

This shows that a large portion of devices that originally depending on import was substituted by domestic made devices, and the gap between Chinas industry level and word advanced level is narrowing rapidly.

The main reasons for the rapid growth in Chinas food machinery industry are: First, the annual increase of food industry reaches 25%. The need of food machine and packing machine is prosperous, which arouses the development of food machinery industry. Second, Chinas food and packing machinery technique advances tremendously. A batch of producing lines with international advanced level is opened up successfully. The value it creates is incomparable with singular technique of simple machine. Third, export products structure is transforming from one single machine to a whole set and to adapting project contract, therefore, the technique value is rising enormously. Also, the management level of the enterprise has enhanced obviously, and infrastructure like workshop and device is perfecting, and the quality of products has risen to a new level.

Accordingly, the reliability of products and trust in consumers has enhanced. At last, some newly arisen enterprises have entered the industry. With a better fiscal situation, these enterprises are more flexible and more competitive.

By the end of 2005, enterprises engaged in food and packing machine production in China was above 6800. More than 1500 of these were not stably, and about 15% of them stopped producing or closed down yearly, while 15% enterprises newly join into this industry.

Only 20 enterprises achieve over hundred million in production and sale, in which the best enterprise can realize an annual sale of billion RMB and only 2 are listed enterprises; then only 50 enterprises with an annual sale above 30 million, the total sale of these 50 enterprises are only 10 billion, accounting for 12% market quota. 50% of the export products are from these 50 enterprises. Futures large reorganized enterprise group maybe created from these enterprises.

Up to the end of 2005, more than 60 enterprises achieved a sale of above 30 million RMB, occupying 19.6% market quota.

Since 1995 100 kinds of product join in Chinas machinery industry annually. Up to 2010, the product variety will reach 3100, which can basically meet domestic demands. At the same time, food machinery export will keep an annul increase of 12%. In 2010, the export can reach 1.27 billion US dollars.

Along with the rapidly development, Chinas food machinery industry still has some problems, such as inadequate investment of research and development, repeat in low level, low technique content of products, poor inflexibility, and lack of talents in international trade, etc.

In the future, Chinas food machinery industry will face reshuffle: the industry concentration degree will further improve, several huge enterprise groups will come into being, the disorder situation will be standardized, and some name brand enterprises will stand out. Meanwhile, in order to meet the market demands food machinery develop rapidly, Chinas food machinery will give priority to the development of the oil processing technical device, fruit and vegetable processing technical device, meat processing technical device, dairy processing technical device, convenient technical device, beer and beverage technical device, extrusion molding technique device, sterilization curing technique device, vacuum refrigerant technique device, preserving packing technique device, farm products deep processing set technique device, such as deep processing and integrated use device of soybean, paddy, corn and potato etc.

As for packing machine, emphasis will be given to the development of 10 kinds of device like beer and beverage filling whole set device, asepsis packing device, etc.

Chinas food and packing machinery is challenging both, competition from advanced foreign producers and the huge domestic and oversea market with good development opportunity. China’s food machinery has the advantage of low cost to develop further in the huge domestic and oversea market. The development of China’s food machinery is promising.

Source:佚名

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