China’s Food Capital – Yantai

It’s getting time to highlight another important food region of China in this blog: Yantai in Shandong.

Regional marketing: ‘Hospitable Shandong’

Shandong province is often referred to as China’s fruit and vegetable garden. Shandong was China’s top vegetable production region in 2019 with 11.65% of the national output. Yantai, a coastal city in Shandong, is committed to building a brand for itself as “China’s food city”. Geographically, Yantai is situated close to the Liaodong peninsula of Liaoning province, another important food production region, with a quick ferry service with Dalian, a major industrial and port city on that peninsula.

YantaiLoc

According to the mayor of Yantai, “We are working to boost the city’s food sector by promoting food diversity and security, aiming to develop the city into a heavyweight in both China and the overseas food market”.

The food sector has always been one of Yantai’s competitive industries. The China Food Industry Association recognised Yantai as a well-known Chinese food city in 2009.

Statistics from the local government show that in 2017 revenue generated from the city’s food industry hit RMB 194.87 billion, an increase of 11.9% from the previous year. This figure was 13.8% of the total industrial turnover of the region and 11.9% of the  turnover of the provincial food industry. A recent survey comparing the GDP of major Chinese cities with that of nations in other parts of the world, revealed that the economy of Yantai is roughly comparable to that of Belarus.

There are more than 500 major enterprises doing business in the city’s food industry. These include Changyu Pioneer Wine Co., cooking oil producer Shandong Luhua Co., Shandong Longda Meat Foodstuff Co., and Shandong Oriental Ocean Sci-tech Co.; the company annually produces 1,500,000 mt of edible oil in 33 factories around the nation, benefiting more than 10 mln peanut farmers.

Yantai has a competitive edge in 16 food sectors including fruit and vegetables, oil, meat, aquatic products, rice noodles (fensi), cake, candy, instant foods, dairy products and condiments. A noteworthy product is the cherry. The cherries from Yantai are the best in China. The following illustration is a promotional picture indicating the nutrients in cherries.

The city has 27 nationally famous trademarks and 96 leading provincial trademarks in the food sector. Three brands – Changyu, Luhua and Longda – were named among China’s top 500 most valuable brands in 2014.

Food products made in Yantai are exported to more than 80 countries and regions including Russia, the United States and South Korea. According to the city’s plans, revenue generated from the food industry will reach RMB 300 billion by the end of 2017.

Yantai’s industrial sector generated more revenue and profits in the first half of 2017 than that of any other city in Shandong province, according to data from Yantai’s municipal commission of economy and information technology. The city’s total industrial revenues reached RMB 931 billion in the first half of 2017, leading to total profits of RMB 66 billion, the statistics state.

Home of fruits

With its favorable climate conditions and geographical location, Yantai has become one of China’s most important fruit planting, processing and exporting bases”.

The city is known as China’s hometown of fruit. Fruits produced in Yantai, such as apples, cherries, pears and grapes, are known far and wide.

Yantai apples, which were given geographic indication status by the State Quality Supervision and Inspection and Quarantine Administration in 2002, have become one of the things the city is renowned for. An important centre for apple growing is Qixia, a town Southeast of Yantai.

With a cultivating history of more than 140 years, Yantai has 181,333 hectares of apple orchards, with an annual output of 4.23 mln mt, according to statistics from the Yantai Agriculture Bureau.

The city has more than 200 varieties of apples. The brand Yantai Apple has a value of RMB 10.59 billion, the leading amount in China’s fruit industry for seven consecutive years.

With a bright color and sweet taste, Yantai apples are exported to more than 60 countries and regions with an annual export volume of 600,000 mt, accounting for one-fourth of the country’s total apple exports.

Twenty-one tons of Yantai apples were shipped from Yantai to the United States again on Nov 9, 2015. It was the first time for Yantai apples to enter the US market. As a country with strict inspection and quarantine measures, the US had previously forbidden apple imports from China for 17 years.

“As the price in the US is twice the price in Asian countries, expanding to the US market will surely promote the apple industry in Yantai and increase locals’ income,” said Bai Guoqiang, head of Yantai Agriculture Bureau.

Cherries are another well-known fruit from Yantai, where cherry trees have grown for 130 years. More than 25,000 hectares of cherry trees produce about 190,000 mt of the fruit a year. The cherries are exported to more than 60 countries and regions, including South Korea, Germany and the US.

Fruit juice

With such a variety of fruits, it is not a surprise that Yantai and the surrounding regions are a centre of fruit juice production in China. One of the country’s leading producers of apple juice concentrate, Andre, is located in Mouping, just East of Yantai.

AndreLogo

North Andre Juice Co. Ltd. was established in 1996. The company’s products include: juice concentrate, pureed and preserved fruit, fruit essences, and pectin. Since its establishment, the company has invested more than 3 billion RMB and set up 9 modern juice concentrate production bases in Shandong, Shaanxi, Jiangsu, Liaoning and Shanxi. Andre operates a total of 14 juice concentrate processing lines, 2 pectin production lines, 1 puree processing line and 1 dried fruit production line. The designed annual fruit processing products is more than 2 mln mt, and the annual juice concentrate production 340,000 mt, the annual pectin production 4000 mt and the annual puree production 10000 mt. In April 2003, Andre Juice Company went public on the Hong Kong Stock Exchange, becoming the first listed company in juice concentrate industry in China.

China’s Bordeaux

At almost the same latitude as Bordeaux in France, Yantai is also considered one of the world’s top seven coastal grape-growing areas. It was named the only “international grape and wine city” in Asia by the International Office of Vine and Wine in 1987.

The city now has more than 18,000 hectares of vineyards, 11,000 hectares of which provide grapes for winemaking. It is home to more than 20 international wine businesses and a large number of domestic vintners, including the brands Changyu, Great Wall (owned by the COFCO Group) and Dynasty. Chateau Lafite Rothschild selected Penglai, a county-level city of Yantai, to develop its first vineyard and chateau in China. Penglai established a sister relationship with Australia’s Barossa, one of the world’s finest wine producing regions, on March 25.

Changyu Wine Co. is China’s oldest and largest winery. The company was founded in 1892 by Zhang Bishi. The company’s name is formed from his surname Zhang (Chang) and the Chinese character meaning prosperity. In 2002, the company entered into cooperation with Castel group in France to establish the first professional chateau in China. In 2006, the company cooperated with a Canadian company to build the largest ice wine chateau in the world near Huanlong Lake of Liaoning province. It has also expanded overseas, building Chateau Changyu Kely in New Zealand. Changyu Pioneer Wine Company is now among the ten largest wine companies in the world, producing more than 900,000 hls of wine p.a.

Changyu is constructing a Wine City, with help from the Italian wine company Illva Saronno Holding Spa. It will include a European style chateau and a Wine Research Institute. The facility has been referred to as a Disney World for Wine in a Bloomberg report.

International food expo

To further boost its food industry, Yantai holds a series of international food trade fairs and trade fairs every year.

Fruit & Vegetable Food Fair

YantaiExpo

During the 16th Fruit, Vegetable and Food Fair held in the city last month, thousands of participants from more than 10 countries and regions including Japan, South Korea and Italy came to Yantai in search of business opportunities.

The four-day event attracted organizations and companies from home and abroad to display fruits, vegetables, seedlings, food processing equipment and agricultural machinery at nearly 900 booths.

Six overseas organizations and delegations including the Japan Consul General in Qingdao participated in the fair and brought their latest developments in fruit and vegetable production and related equipment manufacturing.

Some high-tech products at the expo were particularly interesting, including irrigation equipment from Israel, Italy’s agriculture testing machines, apple-planting technology from Japan and unmanned plant protection helicopters from Shandong.

Held in Yantai every year since 1999, the event has become one of China’s most influential expos in the fruit, vegetable and food industry. It provides a sound exchange and cooperation platform for Chinese and foreign companies in the sector.

The fair’s organizers said that the event has attracted more than 1.7 million delegates from across the world during the past 15 years. This year’s event alone attracted 58,000 visitors and the trade volume hit RMB 230 million.

East Asia International Food Trade Fair

The 12th East Asia International Food Trade Fair was held in Yantai June 2 – 5, 2017. resulted in the signing of cooperation agreements worth RMB 1.60 billion. With the theme of “Green, Innovation, Cooperation and Development” attracted more than 900 enterprises from home and abroad. They brought more than 13,000 food products covering 16 categories, from imported food to time-honored Chinese products. The fair was also regarded as lucrative by enterprises from other Chinese regions. More than 100 food enterprises from Sichuan brought their products to the fair, including local liquors, pigs, tea, pickles, condiments and snacks. Exhibitors from Jilin also made appearances as a group, presenting, among other products, ginseng, forest frog’s oviducts and pilose antler, known as the “three treasures in Northeast China”. Enterprises in Harbin offered Qing’an rice, time-honoured Harbin sausages and other specialties. Co-organised to the food fair, Yantai also hosted a trade fair for Jiangxi specialties and an expo of imported maternal and child products.

Scottish Chambers of Commerce opens trade office in Yantai

The Scottish Chambers of Commerce opened an international trade office in Yantai, a Chinese port city in Shandong province May 16, 2017. The formal opening ceremony was hosted by Zhang Bo, vice-mayor of the city, together with senior officials from Yantai municipal government. The Scottish delegation was led by SCC’s new president, Tim Allan, and chief executive Liz Cameron. The Scottish Chambers of Commerce identified robotics, bioscience, manufacturing, engineering and smart technologies, agriculture, food and drink and soccer management as being areas of key interest.

Dutch university opens branch in Yantai

The University of Groningen, The Netherlands, in collaboration with China Agricultural University, plans to establish a presence on a campus in the city of Yantai. In Yantai the university plans to offer Bachelor’s, Master’s and PhD programmes that incorporate significant research activities and collaboration with the business sector. TheYantai campus is located in the middle of a high-tech zone covering 38 km². It is the home of many high-end industries, companies and research institutes, providing good opportunities for top sector jobs and cooperation in the area of research. In addition, as one of China’s greenest cities. Yantai is situated in the province of Shandong, whose 97 million inhabitants offer great potential in attracting future students. However, the Board of Groningen University ran into trouble early 2018, when a majority in the University Council voted against the project. The Board is now trying to reformulate the cooperation.

Bioscience Innovation Demonstration Zone

Yantai will see rapid development in its medical and health industry as authorities are mulling over building an international bioscience innovation demonstration zone. Based on the rapid development of its medical industry, the zone will consist of seven industrial parks including biomedicine industrial park, traditional Chinese medicine and precision healthcare industrial park, which will be built during the 13th Five Year Plan (2016-20) period, according to Li Wei, head of Yantai Food and Drug Administration.

By the end of 2020, the projected prime operating revenues of Yantai’s medical and health industry will exceed RMB 100 bln, achieving year-on-year growth of 15%. Yantai is home to many key national laboratories and boasts high innovation capabilities and potential.

Yantai will introduce supportive policies to encourage research and development, and attract and nurture leading enterprises and high-caliber talents in sectors such as medicine and medical equipment. Yantai has set up a special fund of RMB 200 mln to build platforms providing technological support. To boost the profile and competitiveness of Yantai’s medical industry, Yantai will host the first international conference on medical innovation and development from Sept 16 to 17, 2017.

Yantai specialties served at BRICS Summit

Three Yantai-based food brands made their way onto the dining tables of the 9th BRICS Summit, which was held in Xiamen, Fujian province on Sept 3-5, 2017. Leaders from Brazil, Russia, India, China and South Africa were served up apples, condiments and Longkou fensi (a kind of vermicelli made from bean starch) from Yantai during the summit. Fruit supplier Yantai Lianlei Foods was given the green light to provide its apples for the summit in April. Lianlei apples first went on sale in Xiamen six years ago, and they have become hugely popular in the coastal city, their sales volume rising from just a few tons to more than 1000 mt. The company’s apples are also exported to Japan and several countries in Europe and America. Longkou fensi (see above) produced by Shuangta Foods was also selected as a designated food for the Xiamen summit by the China Food and Drug Administration. Shinho Group also hit the headlines after becoming the official supplier of eight condiments including bean paste, soy sauce, vinegar and pepper to the summit.

Yantai, Stavanger sign ‘sister city’ intent

Yantai and the Norwegian port city of Stavanger are on their way to establishing official friendship ties. Zhang Dailing, vice mayor of Yantai extended a warm welcome to a Norwegian delegation headed by John Peter Hernes, vice mayor of Stavanger, on Oct 19, 2017. The purpose of the delegation is to strengthen cooperation on marine fishery and heavy industrial equipment between the two cities and sign a letter of intent to become sister cities. Other foreign sister cities of Yantai are: San Diego, Omaha (USA), Beppu, Miyako (Japan), Tauranga (New Zealand), Vladivostok (Russia), Gunsan, Wonju, Ulsan, Incheon, Ansan (South Korea), Phuket (Thailand), Angus (UK), Orebro (Sweden), Burgas (Bulgaria), Campel, Ange (France), Szombathely, Miskolc (Hungary), MacKay, Iscah, Wendendy (Australia), Enalesburg (Spain), Lahore (Pakistan).

Eurasia Consult Food knows the Chinese food industry since 1985. Follow us on Twitter.

Eurasia Consult Consulting can help you embed your business in Chinese society.

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

 

Medicine Food Same Source

This is a literal translation of the Chinese expression yao shi tong yuan, which indicates that in the traditional Chinese perception food and medicine are substances derived from the same raw materials. There is a strong link (overlap) between pharmaceuticals and food in traditional Chinese thinking about food, nutrition and preventing/curing disease.

The function of many medicinal plants is often referred to as restore (bu) in Chinese. Medicine brings the diseased body in balance again. The various basic flavours are also accredited medicinal functions.

One consequence of this view on food and medicine is the existence of medicinal restaurants in China. You can tell the cook about your ailments, and he will compose a meal with ingredients that address those problems. This is called yaoshan, ‘medicinal meal’, or shiliao, ‘cure through eating’, in Chinese, again a combination of medicine and food.

This part of the Chinese cultural heritage has a strong influence on Chinese policy making. A good example is the Chinese government’s strong attention to promoting public nutrition. While most Western governments believe that promoting fortified foods is misleading the public from a more healthy diet, the Chinese authorities are actively promoting fortified foods. See our special item about that topic.

If you think that the modernization and the increased influence of Western thinking in China will make this belief in the healing power of food disappear, you are very wrong. On the contrary, we have seen a number of foods fortified with traditional Chinese medicinal herbs appear on the market. An example is honey fortified with dangshen (radix codonopsis), a ginseng-like root. Ginseng itself is also more and more used as an ingredient in Chinese dishes.

The national authorities have issued a list of 87 TCM herbs that are allowed as food ingredients.

Nutritional beverages

TCM has especially inspired the development of a range of health drinks. I will mention a couple of the most representative here.

Stewed pear

Cansi’s (Nengshi) “stewed pear with rock sugar is positioned as an ancient folk recipe that has been spread for thousands of years throughout China”. Some of the claims the product makes are to “lubricate lungs” and to “relieve stress”, with pears playing an integral role in traditional Chinese medicine. The product also has TCM ingredients, such as honeysuckle and lily extract.

StewPear

Yam drink

Natural Source’s Wall Breaking Yam Juice earns it name from the technology it uses. With its yam juice processing, it’s claimed that superior technology can break the cell wall to release additional molecules for nutrition value. The result is that when consumed, it increases the absorption rate by 80%. Yam is one of many traditional Chinese medicinal ingredients that are being processed, combined with other flavours and packaged for modern times.

YamDrink

Biscuits and water for stomach problems

The Jiangzhong Pharmaceutical Group, that became famous for its successful TCM drug against stomach ailments due to indigestion, has launched a biscuit with extracts from the hericium erinaceus fungus in 2015. It is an age old ingredient in Chinese cuisine and an equally old raw material for TCM drugs against problems in the entire digestive tract.

Hougu

Early 2020, instant noodle maker Jinmailang launched a new type of bottled water that has been pre-boiled. It is marketed under the brand name Liangbaikai. This literally means ‘Cool Clear Boiled’ and has been derived from the Chinese expression ‘cool boiled water’, i.e. boiled water cooled down to an agreeable drinking temperature. According to TCM, such water is much better absorbed by the human body than tap water or other types of bottled water. The ad states that this water ‘is more suitable to the guts and stomachs of the Chinese’.

Military participation

Chinese military researchers are are also developing modern applications for traditional herbs. An interesting item we have spotted in this category is an ‘antiradiation biscuit’, a biscuit with the extracts of five Chinese medicinal ingredients. It has been developed for military use, but has also been made available to the general public. We have not yet found it on any supermarket shelf though.

The Wuhan College of Military Economy has develop a type of biscuit that can increase the body’s oxygen level and alleviate fatigue for 48 hours. The recipe includes a number of herbs from traditional Chinese medicine. Once more, this product has been developed for use by soldiers, but it will also have an interesting market in tourist destinations in high elevations, like Tibet. Problems caused by oxygen deficiency often spoils part of the fun among tourists in such regions.

Herbal coffee

One way for TCM to redefine itself to fit into the present age is to link up with a popular beverage like coffee. A time-honoured traditional Chinese medicine store Huqingyutang has opened a cafe named “HERBS EXPRESSO” to sell ‘coffee’ in Hangzhou (Zhejiang). Unlike regular coffee, which is extracted from coffee beans, the cafe’s ‘coffee’ is sourced from herbs and processed with a coffee machine. Actually, the ‘coffee’ is a coffee-flavoured herbal drink, the cafe’s manager said. Mixing fresh fruits, milk and cream, the taste of the new herbal drink is better than the traditional herbal soup. “By improving the taste of herbal drinks, we want to promote traditional Chinese medicine culture to the world,” the manager added.

HerbCoffee

Foreign interest

Multinationals have started to note this development as well. Lipton is marketing a tea on the Chinese market with extracts from Chrysanthemum, honeysuckle and lily. The tea is named: Qing heng cha, ‘clearing balance tea’.

BalanceTea

I will list the ingredients and add the various activities attributed to them according to the Chinese Materia Medica:

Honeysuckle (Lonicera japonica)

  • Clear heat, relieve toxic fire – hot, painful swellings in the throat, breast, eyes; intestinal abscesses.
  • Expel wind-heat – fever, aversion to wind, sore throat, headache; also for summer-heat.
  • Clear damp heat from the lower jiao – dysentery, lin syndrome.

Chrysanthenum

  • Disperses wind, clears heat (bitter, cold) – headache, fever.
  • Clears liver and the eyes (sweet, cold) – wind-heat in the liver channel manifesting with red, painful, dry eyes or excessive tearing, or yin deficiency of the kidneys and liver with floaters, blurry vision, or dizziness.

Green tea

I wonder why Unilever has not yet started marketing this range (there or more such teas available on the Chinese market).

Meanwhile, the famous Pu’er tea from Yunnan is also marketed worldwide a slimming aid and a way to lower blood lipids.

Example of a foods that are ascribed medicinal functions according to TCM in this blog are: dates (jujubes) , lotus pods, sea cucumbers, and dried plums (huamei). Examples of foods enriched with medicinal ingredients introduced in this blog are: moon cakes and some military food.

TCM and COVID-19

Traditional Chinese Medicine has played an important role in the treatment of COVID-19 infections. Clinical treatment shows that several kinds of TCM used during the outbreak in China helped reduce illness in patients and improve the cure rate, according to Li Yu, director of the Department of Science and Technology, National Administration of Traditional Chinese Medicine. In the next step, TCM treatment can be used for patients in the recovery stage. This is the stage in which TCM herbal compounds gradually change from pure medicines to health supplements.

TCM in animal feed

A new development is the use of selected TCM herbs as ingredients for animal feed. Practitioners in China have prescribed bitter blends of medicinal plants and herbs for centuries to ward off disease in humans. Now, farmers are adapting the age-old elixirs — a dash of ginseng here, a speck of licorice there — for use on livestock. They’re hoping to tap into the growing popularity of traditional medicine and health food in Chinese society. The expected results are not only delicious but healthy: lean, juicy meats that can protect against colds, arthritis and other illnesses. A Guangxi farmer began mixing 22 kinds of herbs into the daily feed for his livestock several years ago. The pigs that he raises sell for more than double the price of ordinary pigs, and some customers even eat his meats instead of taking medicine. Farmers like Mr. Lin hope that China’s increasingly health-conscious middle class will help bring medicinal meats into the mainstream. The health-food market in China reached $1 trillion last year, and it is expected to grow 20% annually for the next several years.

Eurasia Consult Food knows the Chinese food industry since 1985. Follow us on Twitter.

Eurasia Consult Consulting can help you embed your business in Chinese society.

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