Annex 2 An Introduction to Food Industry in Fujian and Key Industrial Bases 1. General Description The gross industrial output of enterprises above designated size (companies with an annual gross profits at and above 20 million yuan) reached 375.4 billion yuan in 2013, accounting for 24.1% of the gross output of consumer goods in the province. Specifically, the gross output of agricultural and sideline products reached 211.3 billion yuan. The gross output of food manufacturing reached 94 billion yuan. And the gross output of alcool, beverages and refined tea manufactures reached 70 billion yuan. The food industry in Fujian has the following traits. 1.1. The whole scale of the industry stays at the top ten in China, while the sales value of exports rank the second among all provinces in China. The gross industrial output of Fujian ranked the tenth in China and the sales value of export reached 58 billion yuan, ranking the second in China. 1.2. Manufactures are broken down into various kinds with a scale staying at the top ten in China. The range of food industry in Fujian includes freezing and deep processing of agricultural products, aquatic products, forest products and tea, the manufacturing of foods for meals or for snacks. Fujian is capable of producing the following ten kinds of food. The production of candies and canned food ranked the first in China. The production of frozen aquatic food ranked the fourth in China. Refined tea production ranked the fifth in China. Milk powder production ranked the seventh in China. Soysauce production ranked the eighth in China. Beer, packed drinking water, juice and vegetable beverage production ranked the tenth in China. 1.3. Fujian is striving to build a leading food industry with higher technology. As the Twelfth Five-Year Plan for National Economic and Social Development of Fujian set forth the targets of Fujian’s food industry development, the gross output of food industry in Fujian will have reached 500 billion yuan by 2015 with an annual increase of 18%. Fujian will speed up the construction of key industry clusters of food and its related sectors, and perfect the resource allocation of the industry clusters. Two industry blocks with an output of 50 billion yuan to 100 billion yuan will be built in Zhangzhou and Quanzhou. 1 While in eastern and northern Fujian, food processing and distribution zones will be built. And the middle and central Fujian will be developing manufacturing bases of aquatic products. Different focuses of sectors will be developed in order to achieve competitive edges. Zhangzhou will be developing agricultural products. Quanzhou will be producing snacks. Wuyi mountain area in Nanping, Anxi county in Quanzhou and Ningde will building tea production bases. Meat and bamboo production will be developed in northern part of Fujian. While Fujian attaches importance in building leading food companies, it also tries to make medium and small companies to be leaders in their specific sectors. 1.4. Fujian government emphasizes on the correlation matching between the projects; encourages investment in food machinery, food packaging, food logistics and cold chain projects & related supporting industries; promotes actively the construction of raw material bases for food industry and the major projects, such as the deep processing of fruit and vegetables, of grain and oil, of aquatic products; encourages enterprises to carry out international operation in the aspects of research, manufacture and marketing. 2. An Introduction of Food Industry in Zhangzhou, Fujian Food industry has long been a successful industry in Zhangzhou. The output of enterprises above designated size in 2013 reached 90.5 billion yuan, accounting for 28% of the gross industry output in the city in 2013. It has the following features. 2.1. The aggregate export valued at 3.3 billion US dollars in 2013, an increase of 2.75 over the previous year. Among them, the aggregate export of aquatic products reached 2.6 billion USD and the canned products reached 4 hundred million USD. 2.2. Products range includes processing and manufacturing of fruits, vegetables, aquatic food, edible fungi, tea, bamboo, meat, crops, edible oil, sugar. Hundreds of series like canned food, frozen fresh food, frozen and dried food, meat products, ready-to-eat food, snacks, preserves, fruit wines and thousands of products are processed and manufactured in food bases. A complete industry cluster is in the same time formed. Production of packages, machines for edible fungi and canns is nationally renowned. 2 2.3. Major private companies in Zhangzhou perform well. Companies with an annual sales exceeding 5 billion yuan include “Haixin”, “Haikui”, “Chushi”, “Hongyi”, “Zishan”, “Lvbao”, “Dongfang”, “Lixing”, “Tongfa”, “Yinfeng”, “Dongya” and “Yanfeng”. There are more than 160 companies that has an annual revenue above one hundred million yuan, 28 companies that has an annual revenue above five million yuan and 7 companies that has an annual revenue above one billion yuan. 2.4. Companies in Zhangzhou own many brands. There 14 “Chin Renowned brands”, 65 “Provincial Renowned brands”, 2 “Trademark of China” products and 88 “Trademark of Fujian province” products. Brands that meet the provincial or national standard for qualified food products account for 51% of those in Fujian. And food companies have more brands than companies in other industries. Altother there are 264 products are are granted the usage rights of “Green Food” mark by Ministry of Agriculture and 36 products are with “organic” and “green” certificates, which make Zhangzhou on top of the list of “ organic food owners” and “green food owners” in China and one of the pilot cities in green food development in China. 2.5. The plan for development: currently, Zhangzhou is working on developing and building a complete industry chain of food ,which includes research and development, refined processing, refined packing and marketing. Focus of cooperation is manufacturing, in-depth and refined processing of aquatic products, fruits and vegetables, tea and snacks. Large scale food manufacturing and processing companies are mostly welcomed. 3. An Introduction of Jinjiang Food Industry Park in Quanzhou 3.1. Geographic position and scale: Jinjiang is a county-level city under the jurisdiction of Quanzhou. It situates at the junction of Luoshan Street and Yonghe County. It is to the west of Ringroad in Quanzhou (a branch line of Douwei Expressway) and is close to Wuli Industrial Park, one of the newly built Industrial Park in Jinjiang Economic Development Zone. The Park is going to cover 1112.36 hectares. 3.2. Features of the industry park: There is an upper trend growth of Jinjiang, a county level city. Jinjiang has been ranking the fifth to the seventh for 11 consecutive years in terns of economic competitiveness of county-level city and its economic capacity has 3 been staying at the forefront for 20 years in Fujian’s counties. In 2012, the GDP of Jinjiang reached 123 billion yuan and the fiscal revenue was 16.1 billion yuan. 41 companies had gone public by the end of 2012. There are synergies of industrial clusters. Leisure food or snacks manufacturing is one of the three leading industries in Jinjiang. There are around 400 companies and the market share of China is 10%. There are 12 famous brands in Jinjiang and it is dubbed “Super City for Food Industry” and “Pilot County for developing County Food Economy in China”. There are many leading companies in one Park, like “Qinqin”, “Labi Xiaoxin (Fujian) Foods Industry”, “YAKE”, “Fuyuan”, “Fuma”, and “JCHERE”. The Park has good transportation facilities. It takes half an hour to reach Jinjiang International Airport, Shenhai Expressway, Weitou Port ( a deep sea water port for ships with a rating of 10000 tons and one of the port that opened to Taiwan for conducting small amount trade), Senhu Port, Port land and Expressway Stations. 3.3. The development plan of the park: a brief summary of the plan is one centre, two orientations and many blocks. The centre is the business training centre. The orientations are attracting international companies and providing comprehensive services. Blocks in the Park are food industrial blocks, an amenity block, a service block, a logistic block and an environment friendly block. The building of these blocks will in turn bring many potential projects like the planning and building of living facilities, standard factories, apartment for workers, parks, restructuring of villages and communities. 4