According to analysis by industry insiders, there is always a low level of competition in the concentrated fruit and vegetable juice processing industry due to low barriers to entry. This time, the Ministry of Industry and Information Technology raises industry barriers to entry, which will help increase industry concentration, eliminate outdated production capacity, and contribute to the health of the industry. Development will also help relevant export companies increase their bargaining power.
“At present, overcapacity is the biggest bottleneck in the development of the domestic fruit juice industry.†Chao Junwen, deputy secretary-general of the China Fruit and Livestock Import and Export Chamber of Commerce’s fruit juice branch, pointed out in an interview that excess capacity has directly led to intense competition for raw materials and became a fruit juice industry in recent years. The most dramatic drama staged.
Recently, the Ministry of Industry and Information Technology recently released the “Entry Requirements for Concentrated Fruit and Vegetable Juice (Slurry) Processing Industry†(hereinafter referred to as “Entry Conditionsâ€), stating that the concentrated fruit and vegetable juice (pulp) processing industry will implement the access management and will not be in a certain area. Approved new project.
It is reported that this condition will be implemented from October 1, 2011. The “Entry Conditions†proposed that the location of the newly-built, reconstructed or expanded concentrated fruit and vegetable juice (pulp) processing enterprises (projects) must comply with national laws and regulations, industrial policies, and industry development plans, in line with overall land use planning, land supply policies, and land use standards. , strictly implement energy conservation assessment and review and environmental impact assessment system.
At the same time, the access conditions also clearly indicated that the capacity of the newly-concentrated fruit and vegetable juice (pulp) processing enterprises (projects) should be adapted to the distance between the existing concentrated fruit and vegetable juice (pulp) processing enterprises (projects) in the surrounding area. It cannot be less than 50 kilometers recently.
Eliminate backward production capacity
“Concentrated fruit and vegetable juice processing industry has always had a low level of competition due to low barriers to entry. There are too many small and medium-sized enterprises in the industry, resulting in low capacity utilization rate and profitability in the industry,†said Chaojun Wen.
The reporter learned that China is an important global fruit juice producer and exporter. In particular, apple juice concentrate has become an important export commodity in China's fruit and vegetable products and agricultural products. At present, the annual output and export volume of concentrated apple juice in China has accounted for more than 60% of the global total.
According to the report of SDIC Zhonglu Juice Co., Ltd., due to the substantial expansion of the capacity of the juice industry in recent years, resulting in the accumulation of large inventories in the past crop season, coupled with the depressed market demand under the influence of the crisis, resulting in a sharp drop in juice market prices this year. In other producing countries, such as Poland and Russia, due to factors such as currency devaluation, tariff preferences, and a short transportation radius, there has been a price competitive advantage over Chinese products, which has brought greater export pressure to Chinese companies.
In this regard, Chaojun Wen told reporters that in the long run, the “Entry Requirements†will not only limit new production capacity, ease the tension in the existing raw materials, and be conducive to the healthy and orderly development of the industry, but also help improve the overall juice industry in China. The level, to a certain extent, is conducive to export companies to improve their pricing power.
Zhou Sianran, a food industry researcher at China Investment Advisors, also believes that the "admission requirements" will help alleviate the overcapacity problem in the industry, increase industry concentration, and standardize the investment behavior of the concentrated fruit and vegetable juice processing industry.
Leading companies benefit
The access conditions also clearly pointed out that in the apple juice concentrate area, new and expanded processing companies (projects) are forbidden, but existing enterprises are allowed to take measures to upgrade and upgrade.
According to Zhou Siran, leading companies with scale and brand advantages in the industry will become the biggest beneficiaries of the “access conditionsâ€. The Ministry of Industry and Information Technology raises the barriers to entry of concentrated fruit and vegetable juices and encourages mergers and reorganizations, mainly to protect the safety and health of consumers, prevent low-cost products from entering the market, and limit low-end disorderly competition.
At present, the domestic market has strong growth in demand, and the demand for fruit juices has grown far more than domestic revenue growth. Although Huiyuan juice accounts for half of the total, SDIC Zhonglu and Great Wall Electric are still expected to take advantage of the policy and obtain further opportunities for development in the industry mergers and acquisitions.
According to the latest data published by the authoritative survey agency, in China, the compound growth rate of the fruit juice and juice beverage industry from 2004 to 2010 reached 24%, and the current average annual consumption of juice is only 0.7 liters, and the per capita consumption is expected to increase dramatically in the future. space. “The promulgation of access conditions will standardize the competitive environment of the industry, reduce the regional competition faced by existing enterprises, promote enterprises to become bigger and stronger, enhance the overall strength of the industry, and to a certain extent improve the status quo of food quality and safety.†Zhou Siran said that for a long time Look, the improvement of the competitiveness of enterprises and industries and the improvement of product quality and safety will certainly improve the image of the fruit and vegetable juice industry in the world and boost exports.
“At present, overcapacity is the biggest bottleneck in the development of the domestic fruit juice industry.†Chao Junwen, deputy secretary-general of the China Fruit and Livestock Import and Export Chamber of Commerce’s fruit juice branch, pointed out in an interview that excess capacity has directly led to intense competition for raw materials and became a fruit juice industry in recent years. The most dramatic drama staged.
Recently, the Ministry of Industry and Information Technology recently released the “Entry Requirements for Concentrated Fruit and Vegetable Juice (Slurry) Processing Industry†(hereinafter referred to as “Entry Conditionsâ€), stating that the concentrated fruit and vegetable juice (pulp) processing industry will implement the access management and will not be in a certain area. Approved new project.
It is reported that this condition will be implemented from October 1, 2011. The “Entry Conditions†proposed that the location of the newly-built, reconstructed or expanded concentrated fruit and vegetable juice (pulp) processing enterprises (projects) must comply with national laws and regulations, industrial policies, and industry development plans, in line with overall land use planning, land supply policies, and land use standards. , strictly implement energy conservation assessment and review and environmental impact assessment system.
At the same time, the access conditions also clearly indicated that the capacity of the newly-concentrated fruit and vegetable juice (pulp) processing enterprises (projects) should be adapted to the distance between the existing concentrated fruit and vegetable juice (pulp) processing enterprises (projects) in the surrounding area. It cannot be less than 50 kilometers recently.
Eliminate backward production capacity
“Concentrated fruit and vegetable juice processing industry has always had a low level of competition due to low barriers to entry. There are too many small and medium-sized enterprises in the industry, resulting in low capacity utilization rate and profitability in the industry,†said Chaojun Wen.
The reporter learned that China is an important global fruit juice producer and exporter. In particular, apple juice concentrate has become an important export commodity in China's fruit and vegetable products and agricultural products. At present, the annual output and export volume of concentrated apple juice in China has accounted for more than 60% of the global total.
According to the report of SDIC Zhonglu Juice Co., Ltd., due to the substantial expansion of the capacity of the juice industry in recent years, resulting in the accumulation of large inventories in the past crop season, coupled with the depressed market demand under the influence of the crisis, resulting in a sharp drop in juice market prices this year. In other producing countries, such as Poland and Russia, due to factors such as currency devaluation, tariff preferences, and a short transportation radius, there has been a price competitive advantage over Chinese products, which has brought greater export pressure to Chinese companies.
In this regard, Chaojun Wen told reporters that in the long run, the “Entry Requirements†will not only limit new production capacity, ease the tension in the existing raw materials, and be conducive to the healthy and orderly development of the industry, but also help improve the overall juice industry in China. The level, to a certain extent, is conducive to export companies to improve their pricing power.
Zhou Sianran, a food industry researcher at China Investment Advisors, also believes that the "admission requirements" will help alleviate the overcapacity problem in the industry, increase industry concentration, and standardize the investment behavior of the concentrated fruit and vegetable juice processing industry.
Leading companies benefit
The access conditions also clearly pointed out that in the apple juice concentrate area, new and expanded processing companies (projects) are forbidden, but existing enterprises are allowed to take measures to upgrade and upgrade.
According to Zhou Siran, leading companies with scale and brand advantages in the industry will become the biggest beneficiaries of the “access conditionsâ€. The Ministry of Industry and Information Technology raises the barriers to entry of concentrated fruit and vegetable juices and encourages mergers and reorganizations, mainly to protect the safety and health of consumers, prevent low-cost products from entering the market, and limit low-end disorderly competition.
At present, the domestic market has strong growth in demand, and the demand for fruit juices has grown far more than domestic revenue growth. Although Huiyuan juice accounts for half of the total, SDIC Zhonglu and Great Wall Electric are still expected to take advantage of the policy and obtain further opportunities for development in the industry mergers and acquisitions.
According to the latest data published by the authoritative survey agency, in China, the compound growth rate of the fruit juice and juice beverage industry from 2004 to 2010 reached 24%, and the current average annual consumption of juice is only 0.7 liters, and the per capita consumption is expected to increase dramatically in the future. space. “The promulgation of access conditions will standardize the competitive environment of the industry, reduce the regional competition faced by existing enterprises, promote enterprises to become bigger and stronger, enhance the overall strength of the industry, and to a certain extent improve the status quo of food quality and safety.†Zhou Siran said that for a long time Look, the improvement of the competitiveness of enterprises and industries and the improvement of product quality and safety will certainly improve the image of the fruit and vegetable juice industry in the world and boost exports.
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