Zhangzhou: China’s second (first?) food capital

It has been a while, since I introduced Yantai (Shandong), China’s food industry capital. Somewhat later, I added a blog about the specialised food capitals. That list included Zhangzhou in Fujian province, as China’s canned food capital. However, the Zhangzhou food industry has developed so rapidly and broadly during the past few decades, that it should be regarded as China’s second food industry capital. In fact, the city already earned the title of “China’s famous food centre” from the China National Food Industry Association in 2011.

Determined to become a prestigious food production centre, Zhangzhou in Fujian Province is well-equipped to strengthen and enhance the structure and standards of its food industry. Zhangzhou continues its efforts to stimulate innovation and development in the food industry. The city’s ultimate aims are to establish a qualified and systematic food manufacturing centre with high standards and to strengthen its food-brand influence in the industry.

In 2013, there were 425 large-scale food manufacturing enterprises in Zhangzhou, accounting for 26.4% of the total numbers of significant enterprises from all industries. Food production values amounted to USD 12.08 bln, up 20.9% from the previous year. Exports of food and subsidiary agricultural products from Zhangzhou totalled USD 4.1 bln, up 47% and were responsible for 66% of Fujian Province’s total exports.

There are three main streams of revenue for Zhangzhou’s food industry, namely subsidiary agricultural food processing, food and wine manufacturing and beverage and tea production. Seafood, vegetables, oil and fertilizers are the main categories on the subsidiary agricultural food processing list, which generated a total production value of USD 7.8 bln in 2013 – an increase of 30%.

The total production value of food manufacturing, mainly canned food and biscuits, amounted to USD 3.3 bln, up 31.3%. The total beverage and tea production, with Oolong Tea and other beverages as best-sellers, had a value of USD 574.5 mln, an increase of 27.4%. The top 608 food companies in Zhangzhou generated a combined turnover of RMB 178.3 billion in the first 10 months of 2020; up 2.1%.

Speciality food

After years of development, Zhangzhou has established a firm foothold in the business of producing speciality food, such as canned fruits and vegetables, frozen vegetables and seafood and the processing of meat and preserved fruits. Of equal importance are food and food-related items such as biscuits, vegetable oil, fertilizers and tea.

Zhangzhou’s production of canned food occupies 60% of the province’s total and 11% of the nation’s total. In particular, exports of canned mushrooms represent more than 80% of China’s total. Zhangzhou also plays a significant role in many other categories. For example, it is the number one producer of canned asparagus, water chestnuts and bamboo shoots; the key production base of candied ginger, providing 80% of the European market’s supply; and the second largest exporter of processed seafood in the province.

Large-scale establishments

Among the city’s large-scale food enterprises, there are 190 (11.3% of the total) with the capacity to produce more than USD 16.1 mln worth of food. Zhangzhou’s high production capability is further proven by some impressive figures in 2012, which recorded 12 companies capable of producing more than USD 161 mln worth of food (6.3% of the total); 85 companies with a total production value of USD 32 – 161 mln (44.7%); and 48.9% of the total that could produce food with a value of USD 16 – 32 mln.

Prominent subsidiary agricultural food companies are Hongyi Grain and Oil Resources Co Ltd, Fujian Haikui Aquatic Products Group, Dabeinong Group, Fujian Dongya Aquatic Products Co Ltd and Fujian South China Sea Food Ltd.

Major food manufacturing enterprises include Fujian Zishan Group Co Ltd, China Lubao Group and Danco Group; while beverage and tea producers comprise Damin Foodstuff (Zhangzhou) Co. Ltd, Taisun Enterprise (Zhangzhou) Food Co Ltd and Tsingtao Brewery. There are two publicly listed food companies, namely the Fujian Haikui Aquatic Products Group and Tenfu Corporation. Ranli Food is a rapidly growing innovative producer of pastry, biscuits and bread.

There are 34 foreign-investment enterprises with total business values of USD 1.1 bln, representing 8% and 9.7% of the total of overseas enterprises and their value. Sixty-two companies are run by entrepreneurs from Hong Kong, Macau and Taiwan with values of USD 2.6bn, and 329 domestic companies have a total business value of USD 8.2bn.

Brands and awards

A dramatic increase in the number of food brands can be seen in Zhangzhou, a result of the city’s great enthusiasm for product innovation and the city government’s aggressive brand name strategy. By the end of 2013, there were 292 brands awarded “provincial-level status”. Among these, 25 are famous food names in China, one being “national-level status” and 266 are classified as the province’s “prestigious brands and products”. In 2013, seven new brands reached “national-level” and 26 new labels were awarded “provincial-level status”.

Zhangzhou’s ultimate aims are to establish a qualified and systematic food manufacturing centre with high standards and to strengthen its food-brand influence in the industry.

City by the sea

Zhangzhou is a renowned coastal city in Fujian Province with a surrounding sea area of 18,600 square kilometres and 112,300 hectares of shoal area. The 715-kilometre-long coastline starts in the north at the Jiulong River Estuary and continues down to the south to the Tielu Gang of Zhao’an County in Guangdong Province, featuring a coastal tortuous rate of 1:4.12. There are more than 20 natural harbours in the city, such as Xiamen Bay, Futan Bay, Jiuzhen Bay, Dongshan Bay and the Zhaoan Bayand Gongkou Gang. The city also has 232 islands with a 2,098-kilometre-long island shoreline, plus 36,000 hectares of usable sea area.

All of these favourable coastal landscapes have enabled Zhangzhou’s fishery industry to develop into a fully-fledged sector, producing 1.54 mln mt of seafood worth USD 2.9 bln, representing an economic value of USD 6 bln. There are more than 300 companies involved in seafood processing — producing 723,000 mt of products (25% of the province’s total), worth more than USD 2.5 bln.

Zhangzhou also exports 383,700 mt of seafood with a total value of USD 2.62 bln, registering an increase of 33.13% and 39.5% respectively. There are five enterprises that can produce seafood worth more than USD 161 mln, and 34 companies with a value of more than USD 16 mln. The city produces five of China’s most famous brands in addition to seven “provincial level labels” and 24 “prestigious” products.

The area has recently accelerated its pace of becoming a key producer of grouper fish. It is determined to accomplish the goal of being the “capital of grouper” and set a record for producing 15,000 mt of grouper, worth USD 241 mln, by 2015. The goal can only be achieved by means of continuously nurturing juvenile grouper, in addition to developing a healthy and standardised rearing system plus a commercialised strategy for fish farms.

For many years, Zhangzhou’s seafood has been exported to the US, Japan, Korea and Southeast Asia. Export markets are now expanding to countries and regions such as the EU, Russia and South America. In 2011, the city’s seafood products were exported to almost 80 countries and regions, with more than USD 100 mln worth of produce for sale to Taiwan, the US, Vietnam and Hong Kong. Presently, Zhangzhou, compared with other cities in the province, has gained the largest number of registered import permits to various countries and regions across the globe. For example, 45 companies are registered to be allowed to import seafood to Indonesia, 35 to Vietnam, 35 to Korea, 25 to the US, 11 to Russia and seven to the EU.

There are 97 large companies with annual production values of more than USD 805,000, and 21 of more than USD 16.1 mln. The number of export companies is increasing. There are 29 companies that export products worth more than USD 10 mln and seven companies at more than USD 50 mln. Among all, Fujian Dongshan Haikui Aquatic Products Group Co Ltd exports seafood products worth USD 200m, one of the top 10 companies in the city. Above all, there are 13 standardised fish farms in the city, three healthy breeding model farms, 20 non-hazardous production bases and 59 export centres.

Special regions

A number of sub-regions of the Zhangzhou Municipal Area have taken up the food image of Zhangzhou in their own regional marketing.

Longhai for leisure food

Within the larger Zhangzhou area there is a city called Longhai. While for Zhangzhou the food industry is regarded as a pillar of the regional economy, for Longhai it is the nr.1 industrial sector. The Municipality of Longhai has started profiling itself nationally as the ‘capital of leisure food‘ in 2019. The region is home for 605 food companies certified by the State Food and Drug Agency, covering a broad range of products. The Longhai government claims that about one third of the Zhangzhou food industry is concentrate in their region. Longhai is closer to the sea than the Zhangzhou municipal area.

Zhao’an green plum land

Zhangzhou’s Zhao’an County has been famous since ancient times as a production region of green plums. The region produces 105,000 mt p.a. of these fruits. The local government decided in 2017 to actively support the growing of plums for 5 years, investing RMB 15 mln each year. Plum exports generated over USD 50 mln in 2018. Plums are not only sold as primary produce, but also processed into various products. 38 of the major plum growing and processing companies of Zhao’an organised themselves into a Zhao’an Green Plum Industry Promotion Association in March 2019.

Peter Peverelli is active in and with China since 1975 and regularly travels to the remotest corners of that vast nation.

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Enzyme applications in the Chinese food and beverage industry

I have a weak spot for enzymes, as this was one of the first type of food ingredients I worked with, when I started to get involved in the Chinese food industry. That was in 1985.

China is a huge market for food enzymes, possibly the largest. This is not only due to the size of the country and the therefore equally large food and beverage industry. Fermentation has been an organic part of Chinese food processing since the Chinese starting recording their history in writing. All the ways one can change the flavour, texture and preservability of raw foods with microorganisms all boil down to the enzymes secreted by the bacteria and moulds. While identifying and producing single enzymes did not start in China, most applications found an eager market there. If you can brew more beer from the same volume of raw materials, than by all means do so. No considerations like Reinheitsgebote in China.

Apart from the use of enzymes in innovative production processes, enzymes can also be employed to turn offal from the food processing industry into valuable ingredients. And again, because of the mere size of the country, the domestic food and beverage industry produces an awful lot of offal each single day.

The road from the first attempts of producing indigenous single enzymes in China took off slowly in the early 1980s, but within a decade, the first exports of Chinese made industrial enzymes took place. Today, multinationals in this industry have to compete with a growing number of local manufacturers, whose R&D efforts generate more and more proprietary enzymes for specific applications. China produced approximately 750,000 mt of enzymes in the first half of 2018; up 8% compared to the same period of 2017.

The graph shows the growth of the Chinese enzymes industry according to a recent analysis by Mcinsey.

I have mentioned some enzyme applications in earlier posts, like the production of steamed bread (mantou). In this post, I will provide an overall summary the most important application areas of food enzymes in China.

Brewing

Adjunct cooking

Rice is relatively cheap in China, while most of the barley has to be imported. Virtually all Chinese brewers therefore use rice as adjunct, which calls for a thermostable alpha-amylase to properly liquefy the rice, before mixing it with mashed barley. 30% is the typical ratio of rice to malt, but with a really thermostable enzyme, you can increase up to 50%. Multinational suppliers still rule in this market, but the number of local producers of this enzyme is increasing.

Mashing

Unlike the liquefaction of the rice, enzymes, single beta-glucanases or compound products, are not obligatory in the mash tun. Compound enzymes as provided by the main multinationals are used in China, but not by all brewers. The larger the plant the more added value can be generated from using such products. Domestic enzyme producers are slowly gaining ground in this market as well.

Other

Adding papain for clarification and glucose oxidase for keeping beer fresh longer are very common in Chinese breweries. Both enzymes are produced in high quantity and quality domestically.

Spirits (baijiu)

As a traditional Chinese product, data for this industry are scarce and unreliable. Enzymes are reportedly widely used in the saccharification of the raw materials, but I assume that it will be mainly domestic generic enzymes, the cheaper the better.

Rice wine

Some rice wine producers use glucoamylase to improve the saccharification of the fermentation broth. Thermostable alpha-amylase, cellulase and neutral protease are also used, the latter for improving the flavour. In view of the positive publications, it can be expected that the use of enzymes will increase in this application, possibly to 100%. The reason for the slower adoption is probably that this is an indigenous Chinese application, which has escaped the radar of the multinationals. As this is a traditional Chinese product, this is mainly a segment for domestic enzymes.

Wine

Part of the wineries use enzymes, but figures indicating penetration and who are the main suppliers are lacking. Based on Chinese practice, we may assume that the smaller wineries will be more willing to use enzymes, in particular for clarification, than the larger ones that are preoccupied with creating an image of being (able to compare with) classic wine makers. All international suppliers are investing in marketing their enzymes for this application, but I have not found indications for serious use in practice.

Fruit juice

Apple

China is good for almost half of the global apple production. The country is therefore also the producer of apple juice concentrate (AJC). All apple juice concentrate (AJC) in China is processed with enzymes. 100% for clarification and probably also close to 100% for maceration. Domestic production of pectinases started later that those for starch processing as used in brewing, but quantity and quality are improving. The Chinese fruit processing industry is huge and therefore forms a lucrative market for pectinases.

Apples sometimes contain so much starch, that you need to add a little amylase to avoid problems during clarification and concentration.

Some companies use special enzymes to clean the ultrafilter.

Other fruits

Enzymes are used as well, but no reliable data are available. The general trend that Chinese processors will prefer to use enzymes, provided they are cost efficient, applies very strongly in this industry.

Bakery/Cereals:

Bread, baked and steamed

Growing demand for bread and other baked goods is presenting the local baking industries with major challenges. Enzyme design for bakery products plays an important role in overcoming these. However, the fluctuating raw material situation demands individual solutions and prompt responses from the enzyme producers.

Most to all bread in China is produced with enzymes. However, this is realised in the form of compound flour/bread improvers. These will typically include fungal alpha-amylase and sometimes xylanase, glucose oxidase and lipase, roughly in that order of frequency.

After China prohibited the use of chemical whiteners like benzoyl peroxide, industrial producers of steamed bread are coping with the problem that their product is often not as white as the customers (have learned to) accept. Lipase, or more precisely: lipoxygenase, can reduce the betacarotene in flour and thus produce whiter steamed bread. Fungal amylase and xylanase are said to produce steamed bread with a smoother surface, which gives a shiny impression.

An interesting development is taking place in this industry in China. A number of domestic enzyme producers have sprung up specialising in enzymes of the bakery industry, offering products specially formulated for a particular type of biscuit, cake, bread or traditional Chinese baking product, like steamed bread. These products can be best described as formulated enzymes, something in between single enzymes and the traditional flour improvers. This is an interesting development and a potential threat for the traditional suppliers of flour improvers, once the Chinese producers dare to bring those products to the international market.

Flour (wheat) and flour-based products

As introduced in my earlier post on flour and flour improvers or those on traditional Chinese foods like dumplings, some Chinese flour companies have developed specially formulated flours for dumplings, fried dough sticks (youtiao) or steamed bread (mantou). However, these companies hardly ever add pure enzymes, but compound flour improvers as well. The workers in this sector are not really trained to handle enzymes, while adding a standard pack of flour improver to a standard bag of flour does not require any education. The top companies like Guchuan (Beijing) will have proper R&D departments that may experiment with single enzymes, but only in small quantities.

Biscuits

The most typical enzyme application in this industry is protease (papain) for the production of crispy biscuits. Domestic enzymes do that trick very well. Some companies have developed specially formed enzyme products for a broad range of biscuits, cookies and wafers.

noodles

Lipase is the typical enzyme for noodles, or better: flour improvers for noodles. Xylanase, glucose oxidase and transglutaminase are occasionally used.

Traditional pastry

Many flour manufacturer produce specialty flours for cake and traditional pastry, but only very few domestic producers of baking enzymes have so far developed special products for this category. The flagship product among the traditional pastries is still the moon cake. One domestic enzyme producer is supplying a ‘moon cake crust improver’, consisting of compound enzymes and emulsifiers, so again more an improver than an enzyme product.

Dairy

Cheese

As mentioned in my earlier post about this topic, cheese production in China is still in its infancy and most of it is processed imported cheese. However, there definitely is an emerging market for rennet and as it is a new thing in China, that market can be expected to be interested in microbial rennet rather than the natural product.

Some domestic companies offer bromelain for cheese making, but these are generic bromelains and not specially formulated products for that application. Multinationals are mentioning it in their marketing in China, but it is not likely that they are putting in much effort.

Hydrolised milk

Only a few manufactures: Yili (Inner Mongolia), Sanyuan (Beijing), New Hope (Sichuan), Bright (Shanghai) and only limited quantities. Yili seems to be the largest in this category, marketing its product to the elderly. This is still mainly a market for international suppliers, but domestic lactases have also appeared.

enz-DairyEnzymeTank

Enzymatic hydrolysis tank in a dairy company.

Oil extraction

During a recent industry meeting, it was reported that the enzymatic extraction of tea seed oil in China had already moved on from trial to regular production.

Savoury products and flavours

HVP/HAP, nucleotides, soy derivatives (incl. soy sauce), fish sauce, etc.

These are again mainly traditional Chinese seasoning products. As most of these typically include a fermentation step, they are highly interesting for introducing enzymes to make the production more efficient or cleaner, turn out better tasting and healthier products. Examples mentioned in earlier posts are: protease in the production of fermented beancurd (furu), fermented flour paste (jiang), and old soup (lao tang).

Although these are all bulk applications and therefore interesting for enzyme suppliers, the penetration of enzymes in each product group is still not very well documented. I will add more information to this post, whenever reliable data become available.

Fat hydrolosis

Maidele Food is a major producer of cow fat for the growing Chinese hot pot business. In particular the Chongqing hot pot, famous (notorious) for its spicy broth, cow fat is an important ingredient. The company has received an innovation award from Sichuan province in 2022 for its enzymatic process for increasing the aroma of cow fat for hot pot.

Meat

HAP

Hydrolysing meat with protease produces raw material for a wide range of meat-flavoured seasoning products. Considerable R&D is taking place in China to improve processes for teh production of HAP from a broad range of animal-derived raw material.

Stock

Proteases are regularly used to maximise the extraction of flavour from meat in the production of stock, like the ‘old soup (laotang)‘ introduced in an earlier post.

Tenderisation

Papain is the typical enzyme for this application, followed by bromelein. For both, China is now the main production region.

Reusing offall

With such a huge slaughtering industry, China is bound to be the world’s largest producer of meat offall. Treatment of it with proteases can produce a broad range of flavouring products.

Transglutaminase

TG is the fastest growing enzyme in the Chinese food industry. Applied in meat, it can help improving the structure  of meat, which i.a. makes it easier to cut thin slices of meat.

Aquatic products

HAP

Same as for meat. Some Chinese researchers are studying the synthesis of meat flavour by enzymatic hydrolysis (trypsin) of squid skin followed by maillard reaction. The skins are offal of squid processing.

Fish sauce

The traditional production process of fish sauce is very long. It can be speeded up considerably by hydrolyzing  (part of the raw materials with proteases).

Removing scales

A combination of collagenase and pepsin can decrease the damage to the fish during mechanical removing of scales.

Deoderisation

The flesh of some fish has a considerable urea content, which causes an unpleasant odour. Soy bean powder contains urease and treating fish meat with urease can remove enough of the urea to neutralise the odour.

Preservation

A number of enzymes can help the preservation of meat, in particular lysozyme, transglutaminase, lipase triglyceride hydrolase. Considerable R&D activity is taking place in China in this respect.

Food ingredients

Fructo Oligosaccharide (FOS)

The Chinese authorities have approved the use of β-fructofuranosidase to produce FOS from sugar in January 2018.

Traditional Chinese Medicine (TCM)

Considerable R&D is also going on in China to develop enzymatic process for TCM. An example mentioned in an earlier post is enzymatic hydrolysis to produce sea cucumber powder.

New applications awaiting approval

The China National Centre for Food Safety Risk Assessment has listed the following enzymes to be assessed for use in food.

Enzyme production strain origin gene application
Polygalacturonase aspergillus niger aspergillus niger fruit juice extraction
Maltotetrahydrolase bacillus licheniformis pseudomonas stutzeri baking
Alpha-glucosidae Trichoderma reesei aspergillus niger cereal processing
Carboxypeptidase aspergillus niger aspergillus niger meat processing
Lipase aspergillus niger fusarium culmorum baking

Relevant parties need to react before Sept. 9, 2019.

Peter Peverelli is active in and with China since 1975 and regularly travels to the remotest corners of that vast nation.

Public nutrition in China – fine example Public Private Participation

Many Western governments believe that citizens should be encouraged to take care of their own health and see to it that they get sufficient vitamins and minerals by eating a varied diet, with plenty of fresh fruits, vegetables, whole cereals and different protein sources. Adding vitamins and minerals to processed foods is allowed, as long as producers abide by the relevant regulations, but the government does not make public funds available to finance R&D and propagation of fortified foods.

Nutrition as government policy

China is one of the nations that actively support public nutrition. It is even regarded as a basic human right. This means that the government finances R&D into the field of food fortification and the promotion of fortified foods, as a means to enhance the general state of nutrition of the population.

This is not surprising, because the concepts of food, nutrition and medicine are much more intertwined in Chinese culture (Traditional Chinese Medicine TCM) than in the West.

The leading policy making organization here is the Public Nutrition Development Centre (PNDC), an organization under the State Development and Reform Committee of the State Council. R&D is coordinated by the Nutrition and Food Safety Institute of the Centre of Disease Control under the Ministry of Public Health.

This policy, combined with a population of approximately 1.4 billion people, has created a highly attractive market for suppliers of single nutrients, nutrient pre-mixes, and ready-to-eat fortified foods. The Food Ingredients China (FIC) 2018 trade fair (March 22 – 24) included 26 suppliers of various vitamins, and many more of minerals other nutritious food additives.

In October 2016, President Xi Jinping announced the Healthy China (HC 2030) blueprint, a declaration that made public health a precondition for all future economic and social development. The HC 2030 blueprint, released in Beijing by the Chinese government, includes 29 chapters covering public health services, environment management, the Chinese medical industry, and food and drug safety.

Nutrition pagoda

The Chinese love to localise foreign things and ideas. The Western nutrition pyramid has been made Chinese by changing it into the nutrition pagoda.

The Chinese Nutrition Society has issued a special food pyramid for pregnant women late 2019.

Generous budget

The Chinese government has a made a generous budget available to develop pre-mixed micronutrients.

Most micronutrients cannot be simply added to and mixed with other ingredients. Manufacturers of fortified foods need to be sure that the nutritional value of their product when consumed meets the promise they make in the nutrition information on the packaging. Some nutrients lose activity during heating, while others may dislike a low or high pH value. Some nutrients dislike one another’s presence.

This means that many nutrients need to be buffered or treated otherwise. This is specialist knowledge held by a small number of specialist scholars.

These researchers develop processes to protect single nutrients and formulate nutrient pre-mixes in state sponsored research facilities. However, those organizations are less suited for industrial production. A number of more entrepreneurial researchers have set up companies for the production of ready-to-use nutrients during recent years.

Several of them have been very successful and have proved to be fierce competitors to the multinational players like FMC or DSM, who are competing for a share in this lucrative market. The basis of their success is exactly their forming a close and effective chain with government regulators, research institutes, nutrition professionals and food and beverage manufacturers.

VAoil

Ongoing projects

A number of projects has already been launched:

  • Infant formulae and ‘nutrition packages’ for primary school children; infant formulae are by far the largest application, as well as the best known one. The nutrition packages are ready to use packages of micronutrients for children of primary school age. Experiments have been conducted with the latter, handing out nutripacks to children (see picture below), but providing such packages has not been institutionalised so far. The packages use soy or soy protein as a basis and add Vitamins A, D, B1, B2, B12, folic acid, iron, zinc and calcium.
  • Vitamin A fortified cooking oil; as a rice eating nation, many Chinese lack vitamin A and the PNDC has been searching for the best carrier for this vitamin. Cooking oil is one vector that has been tried, in cooperation with COFCO. Products have been launched, but sales seems to be disappointing so far.
  • Wheat flour fortified with 8 nutrients; Vitamin A is also allowed in flour, another ingredient available in every Chinese household. Guchuan Flower has partnered with the government in developing fortified flour  This experiment seemed to have failed as well, because consumers are not willing to pay a premium price.
  • Fortified rice; in cooperation with Bühler, DSM has develop a process to fortify rice with several vitamins and minerals by making fake rice granules that are mixed with regular rice. This Nutririce is produced in Wuxi (Jiangsu). Bühler acquired DSM’s share in the plant late 2013, but DSM remains committed to developing this product. As rice is regarded as a strategic staple, this entire development process has been conducted in close contact with the relevant authorities.
  • Iron fortified soy sauce; iron deficiency is huge in China and soy sauce has been found a proper carrier for iron (EDTA iron). It is current the most propagated fortification project in China. A number of soy sauce manufacturers have launched iron fortified products, but again so far the results seem to be somewhat disappointing.
  • Iron fortified wet noodles and steamed bread (mantou); this multi-nation research project has been initiated by the Food Fortification Initiative (FFI) Secretariat in 2009 and executed by the Nutrition and Food Safety Institute of the Centre of Disease Control. The results were promising, but this has so far not resulted in the regular production of such fortified products.
  • Probiotics; the fortification of suitable foods and beverages with probiotics like oligosaccharides was officially launched in January 2007. A sufficient intake of probiotics promotes a healthy gut flora.
  • Iodine salt: until recently, iodine salt was required in all manufactured foods. This law changed in May 2018. Since then iodine salt is only required in specific cases like regions with iodine deficiency. Another aspect of the new rules was that iodine also has to be listed on the packaging of manufactued foods.

NutriPacks

The lack of progress of several of the the above mentioned projects seems to indicate that public nutrition in China still has a long way to go. Possibly, the many food safety incidents are negatively affecting these campaigns. Chinese consumers are still waiting for regular food to be safe for consumption, so there is little attention left for fortified food.

Moreover, as a result of the public food safety concern, the Chinese media regularly report about ‘excessive number of additives’ in certain foods like soft drinks or ice cream. Fortified foods need to comply with the regulation to indicate all ingredients on the label, so they may end up with an even longer list of ingredients than the non-fortified competitive products.

National Nutrition and Health Committee

China has created a special committee to implement the country’s national nutrition plan, according to the National Health Commission (NHC). Jointly established by NHC and 17 other government departments to coordinate and advance nutrition and health related work, the national nutrition and health committee held its inaugural meeting on Feb. 28, 2019, in Beijing. Among the key jobs are improving food nutrition and health standards that build upon food safety, and establishing subcommittees at local levels to organise nutrition education and training, to conduct pilot programs and spread scientific knowledge in this regard. The national nutrition plan (2017-2030) was released by the General Office of the State Council in July 2017, with the goal of raising awareness of nutrition among the Chinese people, reducing obesity and anemia among students.

From more to less meat

More recently, the Chinese authorities have included the global campaign for lowering meat consumption in the national dietary policies. Like all nations with a growing rate affluence, Chinese started to eat more meat, when they had more money to spend on food. Eating meat has always been a distinctive trait of the wealthy throughout Chinese history. The China National Dietary Guidelines already encourage Chinese consumers shifting toward a plant-based diet. The national government is planning to cut back meat consumption in half by 2030, not just for health and the environment, but also due to concerns for animal welfare, risks to workers, and antibiotic resistance.

A China Plant Based Foods Alliance (CPBFA) was established in December 2018. One of the first professional trade groups to represent plant-based food sector in China. It is a joint effort of the State Food and Nutrition Consultant Committee (SFNCC), Advisory Committee on Nutrition Guidance (ACNG) of China National Food Industry Association. The CPBFA advocates for plant-based ingredients, food and beverages, closely monitoring and thoughtfully influencing the legislative and regulatory environment. A list of members is not yet available, but a seminar organised late 2019 was attended by a mix of producers, consultants, policy makers and equipment suppliers. I will monitor the Alliance’s developments and report about them here.

Low fat, low salt, low sugar

This is another diet-related movement that has started in the Western world, but is now also gradually growing support in China. It has a common trait with the movement to lower meat consumption: fat, salt and sugar (in sufficient amounts) are also regarded as symbolic for a healthy diet in China. Poor people used to eat little meat, which automatically meant that they were happy with any fat they could get. Salt used to be as valuable as in other parts of the world (don’t forget the etymology of the word ‘salary’!) and sugar not much less. Nowadays, cooking oil, salt and sugar are available in abundance, but during the early decades of the Economic Reforms, Chinese were happy to indulge in these food ingredients that had to be rationed not that long before. Unfortunately, this has resulted in a dramatic increase of obesity, hypertension and diabetes among the Chinese.

The national and local governments have started drawing up dietary guidelines controlling fat, salt and sugar. Guidelines for snack food for primary and high school age students were proposed by the Beijing Public Health Commission and the China Food Distribution Association in May 2020.

Item denomination specification
Fat fat free <= 0.5g/100 g/ml
low fat <= 3g/100 g/ml
Sugar sugar free <= 0.5g/100 g/ml
low sugar <= 5g/100 g/ml
Salt salt free <= 5mg/100 g/ml
low salt 120mg/100 g/ml

The Beijing proposals not only deal with lowering fat, salt and sugar, but also include adding more dietary fibre to the meals

Chinese dairy industry: from colonialism to imperialism

Through most of the imperial dynasties until the 20th century, milk was generally shunned as the rather disgusting food with horrible odour of the barbarian invaders. Foreigners brought cows to the port cities that had been ceded to them by the Chinese in the opium wars of the 19th century, and a few groups such as Mongolian nomads used milk that was fermented and made cheese-like products, but it was not part of the typical Chinese diet.

When the People’s Republic of China was born in 1949, its national dairy herd was said to consist of a mere 120,000 cows.  However, the Chinese government has always supported the dairy industry since the founding of the PRC. However, evaporating raw milk into milk powder has been the major production process for a few decades. This made sense, as milk was produced in only a limited part of China and the milk powder could be easily distributed to other regions and then rehydrated into liquid milk. Milk powder was also the main imported dairy product. Another typical feature of the early decades of the modern Chinese dairy industry was that milk was regarded as an essential drink for two segments of the population: children and the elderly.

As China opened up to the market in the 1980s, milk powder began appearing in small shops where you could buy it with state-issued coupons. Parents bought it for their children, because they thought it would make them stronger. There also was a nationalist aspect to this. China felt humiliated ever since the opium wars, and developing a domestic dairy industry would make the national less dependent on foreign powers.

Today, China is the third-largest milk producer in the world, estimated to have around 13 million dairy cows, and the average person has gone from barely drinking milk at all to consuming about 30 kg of dairy produce a year. In a little over 30 years, milk has become the emblem of a modern, affluent society and a country able to feed its people. The transition has been driven by the Chinese Communist Party, for which milk is not just food, but a key strategic tool. The fact that people can afford animal produce is a visible symbol of the government’s success. Making animal produce, particularly milk, available to everyone across the country is a way of tackling potentially destabilising inequalities that have arisen between the big cities and some of the poorest rural areas while China has developed. In the poorest regions, nearly one in five children are still short for their age, from lack of adequate nutrition.

The Party’s current, 13th five-year plan identifies one of its top priorities as shifting from small-scale herds to larger industrial factory farms to keep its population of 1.4 billion in milk. Official guidelines on diet recommend people eat triple the amount of dairy foods that they typically consume currently. President Xi Jinping has talked in speeches about making a “new Chinese”. In 2014, he visited a factory owned by China’s largest dairy processor, Yili, and exhorted its workers to produce good, safe, dairy products. That new Chinese is expected to be a milk-drinker. His predecessors already launched the ideal that ‘each Chinese would drink one glass of milk per day’. This belief in the power of dairy stuck with the average Chinese as well. Some claim that it took hold with the 1984 Olympic Games in Los Angeles. New mass ownership of television sets had allowed Chinese people to see real foreigners, as opposed to actors, live on TV for the first time. “They were amazed to see how strong and tall foreigners were. They could jump twice as far, run twice as fast. They concluded that Americans ate a lot of beef and drank a lot of milk and Chinese people needed to catch up.” Chinese state planners were also impressed by the way the Japanese had developed. When the US defeated and occupied Japan after the Second World War, they had introduced feeding programs in Japanese schools to give children milk and eggs. Average heights increased within one generation.

As populations urbanise, they have always moved up the food chain, making the transition from diets largely based on grains and vegetable staples to ones in which meat, dairy, fats and sugars feature more prominently. China has followed the same trajectory. Dairy consumption grew rapidly through the 1980s and early 90s. The western model of retailing based on supermarkets with longer supply chains arrived in cities, too, making it possible for producers to distribute milk further and easy for shoppers to buy it. As incomes increased, people could afford refrigerators in their homes and wanted milk to put in them. For factory employees working long hours, dairy foods represented a convenient way to get nutrients without having to cook. Technology to produce UHT milk with longer sell-by dates, imported in the late 90s, gave consumption a further boost. Since fermenting milk helps break down lactose, yoghurt and other formulated dairy products were also marketed to overcome lactose-intolerance.

The reinvention of milk as a staple of modern China has required a series of remarkable feats. It has involved privatising farming, allowing processing companies to become corporations, and even converting desert areas into giant factory farms. As populations urbanise, they have always moved up the food chain, making the transition from diets largely based on grains and vegetable staples to ones in which meat, dairy, fats and sugars feature more prominently. China has followed the same trajectory. Dairy consumption grew rapidly through the 1980s and early 90s. The western model of retailing based on supermarkets with longer supply chains arrived in cities, too, making it possible for producers to distribute milk further and easy for shoppers to buy it.

While incomes increased, people could afford refrigerators in their homes and wanted milk to put in them. For factory employees working long hours, dairy foods represented a convenient way to get nutrients without having to cook. Technology to produce UHT milk with longer sell-by dates, imported in the late 90s, gave consumption a further boost. Since fermenting milk helps break down lactose, new yoghurt products were also marketed to overcome lactose-intolerance.

Now the global impact of China’s ever-expanding dairy sector is causing concern in other countries. Dairy farming requires access to vast quantities of fresh water: it takes an estimated 1,020 litres of water to make one litre of milk. But China suffers from water scarcity, and has been buying land and water rights abroad, as well as establishing large-scale processing factories in other countries. A recent move in this respect was the announcement that Yili Dairy (Inner Mongolia) intended to acquire New Zealand’s Westland Milk Products. The news immediately triggered a host of positive and negative reactions, with headlines like: ‘Can the world quench China’s bottomless thirst for milk?’. So, while Western imperialism laid the foundation of the modern Chinese dairy industry, China is now ‘colonising’ the former imperialists.

National School Milk Programme

The Chinese government has introduced the National School Milk Programme in 2000 to support the improvement of students’ nutrition and the development of the Chinese dairy industry. After a decade of operation, the programme reached more than 8 mln students by the end of 2011. And thanks to the Nutrition Improvement Programme for Rural Compulsory Education Students (NIPRCES) launched in 2012, the School Milk Programme more than doubled its coverage in the following years. At present, nearly 20 mln Chinese students receive milk in their schools every day on average. The School Milk Programme creates demand for higher quality and locally produced and UHT processed milk, sourced from licensed dairies. After the School Milk Programme was introduced in 2000, China’s raw milk production increased by 10% per annum over a period of 13 years, dairy cattle stock increased from 4.6 mln to 14.4 mln and annual dairy products consumption volume per person grew from 6.7kg to 27.86kg. A study made in 2009 shows that children gained an extra of 1.2cm in terms of height and 0.6 kg in terms of weight on average after receiving school milk regularly for three years. Though the School Milk Programme has expanded quickly over the past years, it covers only 15% of the total students at the stage of mandatory education. In light of increasing public attention on student nutrition status and the expansion of programmes like NIPRCES, the School Milk Programme is expected to benefit more students in the future.

Entrepreneurial initiatives

However, there is already a large number of fortified foods available in China. Many of them add single nutrients, in particular calcium. Calcium deficiency is rampant in China as well, and calcium compounds are easy to add to foods and beverages. Iron, zinc, magnesium and vitamins in various combinations are added too.

An interesting example is Mondelez (formerly Kraft) that is producing biscuits in China with 10 nutrients added. The following table shows the content of each nutrient per 100 gr of finished product as indicated on the consumer packaging.

Mondelez

Nutrient dosage
Vitamin A 833 IU
Vitamin B1 0.4 mg
Vitamin B2 0.4 mg
Niacin 4.0 mg
Vitamin B4 0.4 mg
Vitamin D 3.2 mg
Folic acid 58 mg
Zinc 4.5 mg
Iron 4.0 mg
Calcium 290 mg

Another example worth mentioning here is Bread Pan, produced by Oishi, a Chinese venture of Philippines based Liwayway Holdings. The bread is sold as packed slices and marketed as a breakfast food. It is flavoured with shredded beef. Added nutrients per serving are listed as follows.

BreadPan

Nutrient dosage
Vitamin A 43 iu
Vitamin C 9.80 mg
Vitamin D3 17.55 iu
Vitamin B1 0.50 mg
Vitamin B2 0.15 mg
Vitamin B3 1.30 mg
Vitamin B6 0.15 mg
Vitamin B9 11.70 mg
Vitamin B12 0.13 mg
Vitamin B5 0.40 mg
Calcium 63 mg
Iron 0.70 mg
Zinc 0.40 mg

Some manufacturers seem to struggle between the will to make their product more nutritious additives and the need to maintaining the texture and flavour of the original product. In other posts, I have pointed out that most industrial bread sold in China comes with an impressive ingredients list. Mankattan Food is offering a ‘fortified bread’ with the following ingredients.

Whole wheat flour, high gluten wheat flour, water, HFCS, yeast, shortening, salt, gluten powder, calcium propionate, calcium carbonate, compound enzyme (calcium sulfate, vitamin C, xylanase, alfa-amylase, glucose oxidase), calcium lactate, food flavour, beta-carotene, mixed vitamins and minerals (maltodextrin, ferrous pyrophosphate, nicotinamide, zinc oxide, vitamin B1, vitamin B2).

This bread indeed supplies the consumer with some additional nutrients, but also contains a number of non-natural ingredients that are not strictly needed to make artisanal bread.

Most of these manufacturers of fortified foods and drinks do not cooperate with PNDC. This indicates that lack of strategic and marketing knowledge is part of the problem in propagating public nutrition by the authorities.

Yake Food (Fujian) produces a fruit-flavoured candy, Yake V9 Candy, enriched with 9 vitamins.

Each candy is said to contain the following vitamins:

Vitamin Dosage
C 23.04 mg
B3 3.13 mg
E 2.82 mg
B5 1.37 mg
B2 0.32 mg
B1 0.32 mg
B6 0.27 mg
Folic acid 79.8 mg
B12 0.47 mg

Ice cream maker Zhongjuegao has launched ‘ice cream for non-adults’ in 2019. It is fortified with vitamins A and D and calcium, as many drinking milk products in China.

Does it work?

So is a public nutrition policy like that of the Chinese government more effective that the propaganda to eat well policy of most Western governments? So far, no comparative research has been conducted. My personal impression (I have been involved in a global market survey concerning public nutrition) is that big city dwellers in China or West Europe usually have few nutrition problems. They have the knowledge about nutrition and have access to nutritious food ingredients. The difference could be in the poorer regions on those countries and the entire globe. It does make sense to add nutrients to staple foods or food ingredients that are used in most households.

Peter Peverelli is active in and with China since 1975 and regularly travels to the remotest corners of that vast nation. He is a co-author of a major book introducing the cultural drivers behind China’s economic success.

Leisure food – A food group strongly embedded in Chinese culture

The existence of a category like leisure food in Chinese food statistics is rooted in the laid back nature of Chinese culture

Entering a typical Chinese supermarket and looking around at the distribution of foods and beverages on the shelves, one indication that may strike you as unfamiliar, of even odd, is ‘Leisure food’, xiuxian shipin in Chinese.

Leisure and food are a match made in heaven in any culture, but there is no nation that created a more harmonious marriage between those two concepts than the Chinese. Visit any historic site in a Chinese city, and you will be amazed about the choice of snacks and drinks that are on sale in small shops or by street vendors.

When you then zoom in on the domestic tourists, you will have a hard time spotting one who is not eating or drinking, or at least visibly carrying food in their bags, ready to take it out and have a bite.

Before getting to those sites, or scenic spots, you need to travel. China is a huge country, so travelling can take time, and the best way to kill time in any culture is . . . eating. Chinese airports, train stations and long distance bus terminals are genuine food streets, offering everything the easily bore passengers may want to keep themselves, and their facial muscles in particular, busy. Eating has thus become the favourite way to pass the time on long haul rides in China.

Chinese high school and university students are also an important consumer group of leisure foods. Bakery products and meat snacks are their favourite foods during breaks.

All this has led to the coining of the category leisure food in the Chinese food industry.

It has become an officially recognized term. The library of Eurasia Consult has a collection of Food Industry Yearbooks starting with 1985 until the early 2000s, when the Internet rendered those paper information carriers unnecessary. Leisure Food is a separate section in those books, like the separate shelf for those products in Chinese supermarkets.

Leisure food is a hybrid collection of foods comprising:

One source divides leisure foods in the following subcategories:

Type main market customers outlets consumption mode
Private consumption home family members Residential areas, special shops, convenience stores At home
Travel food travelling travellers local special shops, supermarkets , airports, railroad stations, tourist spots Travelling, gift giving
Gifts Gift giving people in need of gifts special shops, supermarkets Gift giving

What I especially like in this division is the category of ‘gifts’. It always a nice gesture to bring home local delicacies when returning from a trip. And with a country as large and varied as China, there are more local specialties than a person can bring home in a life time. Moreover, gifts play a key role in Chinese culture. This is why Chinese airports and larger railway stations sell local foods in fancy gift packaging. People do not buy those to eat themselves, but to give them to relatives and friends.

The following graph shows the market shares of various categories of leisure food of December 2019.

Market size and value

There are more than 4000 manufacturers of leisure food in China.The leisure food industry in 2018 was worth RMB 1029.7 bln; up 12%. Insiders expect that the value of this market will reach RMB 1298.4 bln by 2020.

Ingredients

It is an interesting market for suppliers of food ingredients. Preservation is key term here, not only referring to keeping the bugs out, but also the preservation of the flavor, color and texture.

This sector is also an interesting market for suppliers of food packaging machinery. All of the above mentioned products need to be packed in small portions, that can be conveniently stowed in ones pocket or hand bag. The preferred size is the single-portion package; a pack you open and empty in one leisurely moment, without the need to close and seal it for the next moment.

Image

Trends for 2017

  • Leisure food should be tasty, novel and healthy. Snacks are by definition tasty. Consumers will only make repeat purchases and remember the brand if a snack is delicious. Chinese consumers are eager to try new leisure foods. As long as a product is novel and interesting, they are willing to give it a go. As Chinese are becoming increasingly health conscious, growing numbers place great emphasis on the nutrition facts of nibbles, such as those that are low in sodium, sugar and fat. This also includes additives in general. If more flavourings are added in order to create exciting taste, it can may Chinese consumers, who are now avid readers of ingredients lists, suspicious.
  • Small Packs are the trend. A very prominent trend is packs are getting smaller and smaller. Factors driving the growing demand for leisure food in mini packs are convenience, hygiene, pricing and visual impression. Mini packs can satisfy consumers’ demand for “convenient and hygienic one-off consumption”. They are particularly popular with female consumers who prefer snacks that can be eaten in one go. With large packs, if the food inside cannot be consumed straight away after they are opened, some consumers would not want to eat it again afterwards as they would consider it to be neither fresh nor hygienic.

Peter Peverelli is active in and with China since 1975 and regularly travels to the remotest corners of that vast nation. He is a co-author of a major book introducing the cultural drivers behind China’s economic success.