What on earth are . . . youtiao?

It has been some time that I uploaded a ‘What on earth . . .’ post, so here is a new one. Youtiao literally means ‘oily stick’. That does not sound very appetizing, which would be inappropriate for a traditional food that virtually every Chinese likes. A rather long English rendition I have come across is ‘deep-fried bread stick’. This is more like a description than a translation. If I remember correctly, I have also once read ‘fritter’ as the translation for youtiao somewhere. That is certainly a convenient one, but our fritters are incomparable with youtiao. In line with the philosophy of this blog, let’s not translate this word then and get used to youtiao, as my regular readers should be used to mantou by now (in case you have forgotten this term, look it up using the convenient search function of this site).

Youtiao are deep-fried twists of dough. They are almost exclusively a breakfast food and are usually eaten with congee or with a bowl of steaming sweetened soy milk. The vendors get started at around 5 am and are still making them way past eleven, for all the late-risers. It’s so commonplace to see someone in pyjamas and flip-flops walking back home with a plastic bag filled with three or four youtiao for the family breakfast. The reason is that youtiao are delicious when then have just left the deep-fryer, but their texture quickly becomes rubbery with the lowering of the temperature. Making them at home is not a real option. It is a waste of oil and the oily fumes are not good for your walls, furniture, your clothes and anything else in your home. Better have a street vendor fry them for you in the open air.

Youtiao are fantastic when pulled fresh from the deep-fryer. The foot-long bread can be separated into two side-by-side pieces, with a crisp, almost waffle-like exterior, and a light and chewy interior. Like all fried things, the flavour depends entirely on the quality of oil being used and the freshness.

Youtiao are made from yeast dough, rolled flat, then cut into short narrow strips. Each strip is placed on top of a second, then pressed lightly together lengthways to make the join that can later be pulled apart after cooking. The baker then deftly twists and stretches them until they are the right length, and lays them side by side in the deep fryer until they are golden brown and nicely crisp.

                   

Here is a typical recipe for youtiao dough.

Ingredient dosage
wheat flour, sieved 500 g
yeast 1/2 teaspoon
sodium bicarbonate 1/4 teaspoon
water 1 1/4 cups
sugar, diluted in the water 1 teaspoon
salt 1/2 teaspoon

Special flour (improvers)

As I have reported in several posts on flour-based products, Chinese flour producers have developed specially formulated flours for youtiao. The motivation is not so much to encourage Chinese consumers to make their own youtiao at home, but to stimulate the industrial production of youtiao. The same applies to the development of flour improvers for youtiao. Several producers of flour improvers are offering improvers for youtiao, containing mixes of enzymes, improvers, starch, etc. A popular brand of youtiao flour is Beijing-based Guchuan.

This product lists the following ingredients:

Wheat flour, starch, sugar, salt, food additives (sodium bicarbonate, sodium pyrophosphate, calcium dihydrogenphosphate, calcium carbonate, citric acid)

An alternative for youtiao producers is to buy specially formulated flour improvers that can be added to plain flour. An example is that produced by Weihaili. You need to add 250 gr of Weihaili’s improver to 10 kgs of flour, together with 100 gr of salt and 6.5 litres of water.

The ingredients of Weihail are:

Sodium bicarbonate, suplhate, d-glucono-lactone, potassium tartrate, maize starch

Industrial production

The main challenge for industrial production is to retain the crispy texture of youtiao. Perhaps a workable solution would be a semi-finished youtiao that consumers can buy in their supermarket and heat in an oven or air-fryer.

An enthusiastic insider has attempted to calculate the maximum value of the youtiao market in 2019. With an urban population of 750 mln people, 65% of which consuming 1 youtiao every 10 days, paying RMB 2/youtiao, he arrived at an estimate of RMB 17.8 billion. Obviously, the market for any food item is big in China, but in this case it points at interesting perspectives for industrial producers.

There are several manufacturers of quick frozen classic youtiao. China’s leading producer of traditional snack food Sanquan, has developed a fennel flavoured youtiao. They are somewhat smaller than regular youtiao.

You can bake them off at home. Ingredients:

Wheat flour, water, vegetable oil, spring onions, fennel, salt, yeast, spices.

Whenever Sanquan comes up with a product, competitor Sinian can’t afford to lag behind. Sinian has launched a small type of youtiao that can be eaten with hot pot, hence the name Hot Pot Youtiao.

The ingredients listed are:

Flour, vegetable oil, water, salt . . .

That ‘. . .’ is not very nice to the consumers, but I will revert as soon as I have the entire ingredients list.

Youtiao are becoming a major growth product. Annual sales have increased from RMB 250 mln in 2015 to more than RMB 1 bln in 2018.

Pre-fried youtiao

A number of companies produce pre-fried youtiao, comparable to the pre-baked bread that you can buy in Europe. They are quick-frozen and can be fried without defrosting.

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.

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Balancing the Five Flavours – for a healthy body and a harmonious society

The ability to perfectly balance flavours is what separates a chef from a cook

If the goal of eating and drinking is to maintain and improve health, then the typical single most important element in food would be nutrition. The Chinese, however, focus on colour, fragrance, taste and form in food, looking for refinement in food vessels and elegance of the dining environment, demonstrating an artistic spirit. Hence, from the beginnings of documented history, the Chinese advocated the philosophy of ‘harmony between the five flavours (wuweitiaohe)’. It could be related to one of the core concepts of Confucianism: ‘harmonious society (hexie shehui)’. The Chinese invented ways to adjust blended ingredients and spices for a wide variety of tastes. Revolving around the ‘five flavours, which are sourness, sweetness, bitterness, pungency and saltiness, dishes can evolve into more than hundreds of different flavours.

Saltiness xian

Of the ‘five flavours’, saltiness is the principal flavour. It is the simplest and simultaneously the most crucial. Salt is needed to heighten any flavour in foods. Without it, any delicacy cannot emerge in its full glory. But from a health perspective, salt should not be taken in excessive quantities. The most important salty ingredient is obviously salt. However, soy sauce is of almost equal importance as a salty seasoning in Chinese cuisine. Soy sauce is a good example of how a few other flavours can be deftly used to cut the raw edges from pure salt.

Some salty ingredients: salt, soy sauce – regular.

Sourness suan

Sourness is also an indispensable taste in foods, especially in the northern part of China, where water supply is heavy in minerals and strong in base. So, in order to induce better digestion of food, vinegar is often used in cooking. It can also arouse appetite. Sour taste can also neutralize fishy odour and greasiness. At banquets with strong grease and heavy meat dishes, sour dishes are usually added to neutralise the greasy mouthfeel (ni in Chinese). They come in many varieties. Not only are the sour tastes of plums, fruits and vinegar different from one another, just the different types of vinegar are distinguished by its production areas, different ingredients and different production techniques, thus causing quite drastic differences in taste. Usually, the northerners regard mature vinegar made in Shanxi as orthodox, whilst the people in the Jiangsu-Zhejiang area appraise the Zhenjiang-made rice vinegar as authentic. The most typical of all places eating vinegar is the province of Shanxi. Many families there are skilled at making vinegar from crops and fruits. Their everyday meals are even more dependent on vinegar. A very interesting thing is that in the Chinese language, the word “vinegar” is used to represent the feelings of jealousy between men and women. Slang, such as ‘eat vinegar(chi cu)’ for being jealous and ‘vinegar jar (cugangzi)’ for a jealous person, are universally understood in both the north and the south.

Some sour ingredients: bitter melon-fresh, vinegar, lemon, lime, dry wine, cranberry, wild cherries.

Pungency xin

Pungency is the most stimulating and complex of the ‘five flavours’. Sometimes Chinese use ‘pungent-hot (xinla)’ as one word. In actuality, pungency and hot (la) have major differences. Hot is sense of taste, stimulating the tongue, throat and nasal cavity. Instead, pungency is not just a sense of taste as it involves sense of smell as well. Pungency is mostly obtained from ginger, while hot and spicy usually denotes the use chili pepper or black pepper. Since hot peppers were a foreign product, there was no mentioning of ‘hot’ in ancient Chinese cooking, instead it was generalised as pungency. Moreover, Chinese also has the word ma ‘numbing’, used for the sensation in the mouth caused by Sichuan peppers (huajiao). It differs from the hot sensation of peppers, but is also part of the range of pungent flavours. Ginger not only neutralizes rank taste and odour but can also bring out the great taste of fish and meats. So, ginger is a must-have when preparing fish and meat. There are also principles to using hot peppers. We should not merely seek for the degree of hotness but should rather use saltiness and natural essence of food as fundamentals, so that the hot and spicy taste comes out multi-staged, full of great aroma and not too dry. In addition, garlic, scallion, ginger and other spices can also kill bacteria, so are great for cold dishes with dressing.

Some pungent ingredients: ginger, black pepper, chili peppers, Sichuan pepper, cinnamon, mace, nutmeg, radish, cardamom.

Bitterness ku

Bitterness is rarely used alone in cooking but is a valuable asset. When making simmered or braised meats, adding tangerine or orange peel, clove, almond and other seasonings with a light bitter touch can rid the meat of unpleasant taste and smell, and awaken the original flavour of the food. Black foods usually also have bitter flavour notes. Traditional Chinese medicinal theories believe that bitterness is helpful for the stomach and produces saliva. Some people really enjoy bitter taste in foods, such as in the Sichuan-style ‘Strange Taste (guaiwei)’ type of foods, which have the bitter elements.

Some bitter ingredients: bitter melon-ripe, Seville orange, soy sauce-thin, garlic-raw, star anise, dry mustard, radicchio, mustard greens, endive, arugula.

Sweetness gan

Sweetness has the effect to cushion the effect of other basic flavours, whereas saltiness, sourness, pungency and bitterness are all too strong, they could be remedied by sweetness. When making dishes of other tastes, sugar can improve and embellish. However, using large amounts of sugar is not recommended, as too much sugar can be nauseous. Since many spices can produce a sweet flavour and they all taste quite different, much of the culinary world hails cane sugar as the orthodox sweetness.

Some sweet ingredients: sugar, honey, coconut, bell peppers, apples, grapes, raisons, hoisin sauce, cooking wine, garlic-cooked dates, onions-cooked, rice-cooked, bing cherries.

Freshness xian

What is not listed in the ‘five flavours’ but still holds an important status in the culinary world is the ‘freshness’, now better known as umami, factor. ‘Freshness’ is the most tempting flavour in food. Most foods all contain an ‘essence’ but it is often dormant, so making soup is often the way to awaken the taste. Chicken, pork, beef, fish and ribs can all be used as soup stock. When the unpleasant tastes and smell are eliminated during the soup-making process, the essential flavour is fully exposed by adding just a touch of salt. Stock not only can be enjoyed directly but can also be used to make other plain foods taste great. Such foods include shark’s fin, sea cucumber, bird’s nest, bean curd and gluten, which all must be cooked with essence soup to achieve its mouth-watering taste. Monosodium Glutamate (MSG) is an artificial essence. Its synthetic nature makes it impossible to compare to naturally made stock. So skilled chefs usually do not care for it.

Healing flavours

Five tastes in harmony, with flavour as the top priority, bringing direct pleasure to the tongue. At the same time, it is a good health-protecting and body-regulating method. Traditional Chinese medicine (TCM) theories state that pungency can regulate bodily fluids, blood and qi, and can be used to treat bone and muscle pain from coldness, kidney problems and so on. Sweetness can nourish, soothe, and improve emotional mood. Honey and red jujubes are also great tonic foods for those who have a weak and frail physique. Sour taste can cure diarrhoea and produce saliva to stop thirst. Sour vinegar can prevent colds, while eggs boiled in vinegar can stop coughing. All these are folk cures with adequate modern medical recognition. Bitterness can release heat in the body, improves vision and detoxify the body. Five tastes in harmony is an important factor to great health and long life. The picture shows that sour is linked to the liver, bitter to the heart, sweetness to the spleen, pungency to the lungs and saltiness to the kidneys.

Modern developments

Societies change and so do their cultures. Although modern Chinese cooks are still eager to balance the flavours, present day Chinese consumers have adopted a slightly different set of terms to discuss the taste of food. A major development is already hinted at in the paragraph on pungency above: the arrival of the chili pepper. Chili has become such an important ingredient all over China, that la ‘hot’ has become an independent category. This has separated ma ‘numbing’ too. Umami is an important aspect of any dish, but is not recognised as a ‘flavour category’ in every day parlance. A survey held early 2020, asking a consumer panel about their most favourite flavour, generated the following results.

Hot comes out as the most favoured flavour; by far. However, when ordering a dinner in a restaurant, or cooking one at home, Chinese still prefer to complement a hot dish with one or two with another dominant flavour. Harmony remains important.

Compound flavours

Chinese cuisine is apt in mixing and blending flavours. Spices and other seasoning ingredients can be combined in endless ways, but a small number of the them have become such favourites of Chinese chefs, that they have got used with various types of foods. An example introduced in an earlier post is yuxiang, ‘fish flavour’. In that post, I introduced the basic recipe and a number of variations developed by food technologists. This post adds another dimension to the understanding of such generic compounds: the mix of basic flavours: yuxiang is relatively hot, but the right combinations of saltiness, pungency, sourness and sweetness can bring out the delicacy of the peppers while containing excessive sharpness.

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.

Eggs – Chinese like them salty

Eggs are one of the oldest ingredients of food in China, witness the 2800-year old eggs on exhibition in Nanjing.

ancientegg

China has produced 33,089,800 mt of eggs in 2019; up 5.78%.

Chinese cuisine includes many dishes with eggs as the main ingredient; fried tomatoes with eggs probably being the simplest as well as the best known. Don’t forget to add a little sugar en chopped garlic, just before turning of the heat.

Eggs can also be used as a minor ingredient to add bulk and texture to a variety of dishes, sometimes as a replacement for meat.

Fresh eggs have special meaning to the Chinese. Eggs are auspicious food, a symbol of fertility, of longevity, of new life. The birth of a child is celebrated with the delivery of hard-boiled eggs to friends and relatives, often dyed a brilliant red in honour of the occasion. Eggs are also a part of the bride’s dowry, sent by her family on the wedding day to her husband’s home as a sign of her potential fertility. They reciprocate with a gift of live chickens.

Birthdays are also marked with noodles and eggs all over China, and even as an ethnic Chinese growing up abroad, I remember my grandmother making a bowl of vermicelli for me with a large egg on top, dyed bright red, of course.

However, eggs are a perishable product, which is why many rural families still keep chickens so they have a steady supply. Chinese have developed a few ways to preserve their shelf life. I am introducing three of these in this post

Pidan – 1000-year eggs

Pidan

First, let’s set straight the myth hidden in that Western term. They have not lain forgotten for 1000 years, despite the name. Instead, pidan, as they are known in Chinese, are carefully cured for several weeks to several months so that the albumen solidifies into a dark, transparent, gel-like semisolid while the yolk hardens slightly on the outside but remains molten in the centre. There are strict culinary standards on what makes a pidan a gourmet experience.

Pidan are always eaten with condiments. They may be served with sweet slices of pink pickled ginger, doused in sesame oil and vinegar, or smothered in minced garlic or chopped cilantro leaves.

The most common raw ingredient for pidan is duck eggs, valued for the size of the yolks and the generosity of the egg white. However, chicken or quail eggs are also used, but more for novelty rather than need. A good century egg often has a snowflake pattern on the outside of the white, an indication of a well-cured egg. Its fearsome colour is the result of a chemical reaction with the curing mix usually wood ash, salt and rice husks mixed with clay or lime.

Pidan as export product

Pidan can even become a lucrative export product. The Shiqian region of Guizhou has been producing pidan for over 600 years. The local government has realised its potential value and supported modern industrial production of its traditional pidan in 1993. The state owned enterprise was dissolved in 1995, but its manager continued the production as a private entrepreneur. The company currently produces more than 10 mln eggs p.a.  Shiqian pidan were already exported to other Asian countries, in particular Malaysia, but more recently exports to the US and Canada, with their growing Chinese population, have also increased.

Xiandan – salty eggs

Xiandan

Another popular staple is the salted egg, a pure white delight that is as visually attractive as its cousin is not.

Eggs from either chicken or duck are carefully wiped clean with Chinese liquor and placed in bottles of saturated brine. After a month to several weeks, the whites would have thoroughly absorbed the salt, and the yolks hardened into little golden globes.

Salted eggs are most often boiled and then split and eaten straight from the shell. They are also used for cooking. The salted egg yolks are vital ingredients in many seasonal foods, including the rice dumplings eaten during the Dragon Boat Festival and the sweet moon cakes during Mid-Autumn festival.

Here is a salted version of quail eggs produced by Deshi.

Wuqiong has launched individually packed salted eggs in 2021, under the Changchangpian brand. The ad states that the seasoning has entered into the yolk due to a process of high temperature and high pressure.

PackedEggs

Chayedan – tea eggs

Chayedan

Tea eggs are usually prepared at home. Brew a pot of tea. You can use any Chinese tea, but a dark tea like Pu’er will taste stronger than green tea. Place the tea and tea leaves in a pot, add a piece of star anise, a stick of cinnamon and either some cloves or cardamom. Add soy sauce and enough water for the liquid to come halfway up the pot.

Wash about 10 eggs and place them in the pot to boil. After 15 minutes, remove the eggs and gently tap them to crack the shells. Turn off the heat and return them to the infusion. You want a marbled effect. The flavours and colours improve if you also break the membranes so the tea infusion can penetrate. Then wait, to allow the eggs to soak in the tea sauce for a few hours, preferably overnight. You’ll be rewarded for your patience with the most flavourful hard-cooked eggs you have ever eaten.

You can reuse the tea sauce to cook more eggs when the first batch is finished, but remember to either add more tea or soy sauce to adjust the seasoning.

Free range eggs redefined

Innovation in food is one of the core themes of this blog. A Chinese organic farmer in Taiyuan (Shanxi) has redefined the concept of ‘natural’ eggs, better known in the Western world as ‘free range eggs’. His term is ‘original eggs (tujidan)’, which he defines as ‘eggs resulting from natural insemination of the hen by a cock’. This is even more humane that simply allowing chickens to walk around freely.

Tujidan

The yolk of the resulting eggs is brighter yellow than those of mass-produced eggs and are said to be lower in cholesterol. Strictly speaking, this is not really innovation, but simply going back to basics. Still, it is a development worth pointing out.

Dried eggs – a novel product

The general trend in the Chinese food industry towards more convenient products has also affect this sector. Recently, Master Shen Food (Anhui) launched a ready to eat egg product: dried eggs. This is a truly innovative product. It imitates traditional Chinese dried bean curd, but is made from eggs, making it a more nutritious product. The ingredients:

Egg, fermented soy sauce (includes caramel colour), sugar, salt, flavours, lemon, food additives (MSG, disodium 5’-ribonucleotide, sodium pyrophosphate, sodium tri-polyphosphate, red koji red, sodium d-isoascorbate)

The brand name is also partly imitation: Master Shen is obviously alluding to the Master Kong brand instant noodles.

Export

China exports some of its egg products as well. Hubei province was China’s top exporter of for the 10th consecutive year in 2019, generating an income of USD 90 mln.

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

Guoba – from nuisance to delicacy

Many of mankind’s finest delicacies have been discovered by accident; sometimes literally. Cheese has probably been discovered when milk had been stored in a calf’s stomach sufficiently long enough for the rennet in the stomach to produce curds.

Problems cooks, professional or at home, often meet when preparing starchy foods in a frying pan is that part of it sticks at the bottom of the pan, forming a relatively hard layer that proves tough to get rid up. Scrubbing it is the only solution.

However, as long as the stuff that is stuck at the bottom is not too black and burnt, it can actually be very tasty. The physical-chemical reaction produces a whole range of aromachemicals that please the taste buds and the nose (though perhaps less so the eyes).

A waiter in a Spanish restaurant in Rotterdam once told me that the rice stuck at the bottom of the pan is the part they like best of their national food paella.

Pan is guo in Chinese and to stick ba. The phrase ba guo, getting stuck to the pan, is a negative cooking term. However, Chinese have also developed a liking for rice fried that way, and those two words turned around, guoba, have become the designation of a tasty snack.

Guoba as a dish

Guoba is a form of rice that is actually scorched or hard cooked to change its colour and texture. Guoba is popular in many forms of Chinese cuisine, particularly in Sichuan cooking. It is known by many names in different areas of China and surrounding countries, and may even be found worldwide in areas where Chinese cuisine is presented and appreciated.

GBnatural

Initially, guoba was made by burning or heavily cooking rice to the bottom of a wok or pot. When the cook took out the rice, the leftover rice was used in various dishes. Later, demand for this sort of rice dish led to the commercial preparation of blocks of this crisped rice.

Any kind of Chinese dish can be served with guoba. Some common forms of this scorched rice food include sweet and sour dishes, as well as other international Chinese favorites like lo mein, chow mein, or other dishes. The usual choices of meat, seafood, and vegetable elements like tofu and bean curd apply to many guoba dishes.

One thing that guoba offers to cooks is the chance to include a different kind of presentation based on the shape and texture of the rice. Cooks can serve the guoba, with heavy sauces or other elements, in blocks, or crumble the rice onto the plate. The scorched rice stands up to all sorts of innovative culinary uses, which makes it popular in many restaurant kitchens, especially where innovative aesthetic presentation is a part of the culinary strategy.

Another form of this food is a “sizzling rice soup” that has become common in some parts of the world. This is not the usual form of the food, so some cooks, even authentically Chinese ones, may not be aware of the use of scorched rice in this particular soup. The general use of the scorched rice in a thinner soup or broth is another way that the rice can be served for a contrasting taste experience.

Snack

Regular readers of my blog will already have noticed that Chinese are masters in re-creating modern snack food (or in their own terminology: leisure food) from traditional dishes. This is also the case with guoba.

Already in the 1980s, Chinese snack makers launched small squares of guoba with various flavours as the Chinese alternative to the Western potato crisps. When I was stationed in China for my company, we regularly served guoba with the aperitifs when entertaining Dutch or other international guests. The all loved them.

ShGuoba

The first picture shows a package of guoba produced by Xishilai Food (Shanghai) and come in: chili, beef, five spices and BBQ flavours. The ingredients listed:

Rice, maize, vegetable oil, salt, crystal sugar, MSG, spices, additives (food flavours, rising agent, antioxidant).

GBerge

The alternative is onion-flavoured guoba produced by Sha’erge (Crazy Brother) from Dongguan (Guangdong). It has black rice as one of its ingredients, which is advertised as ‘black pearls’ or ‘the king of rice’, due to its nutritional qualities. The producer claims that this product contains vitamins A and B as well as calcium, potassium and magnesium. Ingredients:

Rice, black rice, refined vegetable oil, soybeans, starch, eggs, shortening, refined pork fat, salt, MSG, onion spices.

It had been relatively quiet on the guoba scene in terms of new developments. However, Wolong Shenchu (Divine Cook) from Hunan province launched a new type of guoba in 2018: Wolong Guoba.

The crackers look more slick than the first products and they are marketed in a high-end position, as if it is a very traditiional Chinese product. The ingredients list:

Rice, vegetable oil, chili, Sichuan pepper, spics, salt

This is definitely a healthier formulation that has cut on fat and MSG.

A rising star in this market is Shuijun, established in 2014 by a very young entrepreneur Zhang Yulong (then 26 years old). He had studied at the Nanjing Auronautics University, where he was trained to be an interior decorator. However, he decided to open a restaurant and while learning about the catering business, he invented Shuijun guoba aided by a couple of friends and co-entrepreneurs. The Shuijun range of guoba includes varous meat and seafood flavours.

Guoba as market for flavour mixes

Some flavour houses have already discovered the guoba industry as a separate market segment and have develop special seasoning mixes for guoba. Beijing-based Shanwei Puda Food supplies 4 types: five spices, beef, BBQ and cumin. The ingredients list provided for the cumin mix is as follows.

salt, sugar, MSG, spices, cumin powder, food additives (not specified)

The manufacturer advises a dosage rate of 4% -6% of the weight of the end product.

Innovation: peanut guoba

Guoba has already developed as a generic type of snack in the Chinese food industry. The concept is now further stretched to guoba made from other raw materials than the traditional. Zhenyuantong (Huzhou, Zhejiang) has launched a peanut guoba. The ingredients list reads as follows:

White sesame seeds, peanuts, maltose syrup, flour, vegetable oil, coconut meat, coconut milk powder, salt.

PeanutGuoba

The company also produces: melon seed guoba:

Melon seeds, crystal sugar, flour, vegetable oil, salt.

and:

White sesame seeds, crystal sugar, flour, vegetable oil, chili oil, salt.

Haochijia has developed a type of instant noodles based on guoba packed in a cardboard cup. Add boiling water, wait a while, and you can enjoy guoba as it is served in a restaurant.

We are eagerly awaiting the following product to add to this post!

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.

Favourite Chinese flavours – Yuxiang – Fishy without fish

Spice mixes are big business in China. The increasing pace of life and the rapidly expanding spending power of Chinese consumers renders spending a few hours in the kitchen per day to prepare the obligatory three hot family meals a day less and less attractive for Chinese.

However, these changes do not affect the Chinese demand for authentic flavours. Sure, an occasional Big Mac or a helping of Hot Wings from KFC is great, but in general food still has to look, feel, smell and taste as the real thing, regardless how fast it gets.

After my ‘What on earth is . . .’, I am therefore launching another series in this blog: Chinese flavours. I will introduce a number of generic classic Chinese flavours, and how they are implement in ready to eat, or ready to cook, products.

This kick off item introduces my own favourite: yuxiang (literally: ‘fish flavour’). There is actually no fish involved in this spice mix, but apparently it strikes the Chinese palate as fishy. It has reddish brown colour, combines al basic flavours: sweet, sour, salty and spicy and the three main pungent spices: ginger, onions, and garlic.

It can be combined with a number of macro-ingredients like pork, beef, fish and it can even be used to render foreign ingredients like potatoes Chinese.

The basic recipe

Here is a standard recipe for yuxiang sauce.

  • Ingredients: seeped chili pepper or hot douban (see our item on douban sauce), salt, soy  sauce, (rice) vinegar, sugar, MSG, ground ginger, ground rice, onions, stock, watered starch, cooking rice wine
  • Preparation: mix all ingredients with some cooking oil and stir fry until fragrance and colour appear, then add the starch mixed with water. The yuxiang sauce if almost immediately ready.
  • Attention: the taste and colour should not become caramel-like, so do not overcook.
  • Application: yuxiang sauce can be combined with various meats and vegetables. First cook the fresh ingredients and add the sauce once they are done, to avoid overcooking the sauce.

Ready to use products

Now have a look at a few industrial foods using yuxiang sauce:

YXeggplant

Guangzhi Food Yuxiang Eggplant Rice

The photo of the lid already shows what the product looks like inside: cooked rice and eggplants cooked with yuxiang sauce.

YXamano

Amano Yuxiang Eggplant

This is yuxiang eggplant in what Chinese like to call a ‘soft can’, and aluminum foil pack, without rice.

YXlee

Lee Kum Kee Yuxiang Sauce

Good old Lee Kum Kee would not want to lag behind and offers a ready to use yuxiang sauce in a pot.

Yuxiang for cats

Netease has started advertising for a yuxiang cat food under its own brand. I have not heard stories from Chinese cat owners.

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.

Potato growing & processing in China

Few people know that China has already been the world’s largest potato production and consumption country since 1978.

The humble potato, a staple of many a European nation, used to have only a supporting role in Chinese cuisine, even though it has been grown in China for about 400 years. Known as tudou (literally: ‘earth bean’) in colloquial Chinese, or malingshu (‘horse bell tuber’) in more formal texts, the potato traces its history in China to the Ming dynasty, and was popularised by French missionaries in the eighteenth and nineteenth century.

As the name indicates, potatoes used to be seen as a vegetable in Chinese cooking. In home style cooking, in particular in Northwest China, where the potato is an indigenous crop, chunks of potato are added to stews, particularly with beef.

Chefs have created some deep fried delicacies, including tasty little patties and a finely shredded version of the French fry, which is sheer indulgence. Most common in the home and (home style food) restaurants, is the “tudousi“. This dish might come with strips of pork, slices chili, and pickled vegetables.

Image

Some cooks are even combining the foreign potato with very traditional Chinese flavours like the famous yuxiang (fish flavour) spice mix, creating dishes like yuxiang potatoes, shown in the picture below.

YXpotato

The ultimate dish in this series should be: Sweet and Sour Potatoes, a potato variation on the most typical of Chinese dishes in overseas Chinese restaurants: Sweet and Sour Pork.

SweetSourPotatoes

However, potatoes have started to challenge the great staples: millet, wheat and rice in China in recent years. The arrival of Western style restaurants and in particular fast food chains, have introduced potato dishes to virtually all urban Chinese. The countryside can be expected to follow soon.

Potato growing

Marketing year 2019/20 fresh potato production is forecast at 98 mln mt, a 5% increase from the estimated 93 mln mt produced in 2018/19. The top regions, Inner Mongolia, Gansu, Yunnan, Sichuan and Guizhou, are good for 45% of the national volume.

The following table shows the regional output of potatoes in 2015.

Region Volume (mt)
Gansu 2,146,000
Inner Mongolia 1,883,000
Sichuan 1,612,000
Guizhou 1,503,000
Yunnan 1,444,000
Chongqing 1,017,000
Heilongjiang 565,000
Shaanxi 561,000
Ningxia 423,000
Hubei 415,000
Liaoning 383,000
Shanxi 362,000
Qinghai 362,000
Hebei 348,000
Hunan 285,000
Jilin 237,000
Fujian 231,000
Zhejiang 163,000
Guangdong 162,000
Anhui 49,000
Tibet 5,000

The Chinese authorities have officially divided China in three potato growing zones in 2019.

Zone 1 North China
Zone 2 Central China
Winter Zone South China

Zone 2 is the designated zone for growing staple potatoes. However, Zone 1 is the oldest potato region of the nation. The China Daily site offers an interesting insight in the history.

Potatoes are getting so important in China that the Zhengzhou Commodity Exchange (ZCE), one of China’s two agricultural commodities exchanges, intends to introduce potato trade. ZCE is reporting problems with obtaining the necessary permits from the China Securities Regulatory Commission and other relevant central authorities, that are said to need time to “consider more about the development of the market”.

The ZCE has been mulling over the launch of the product for quite a long time. The exchange disclosed its plan to introduce potato futures trading in early 2012, saying the contract was set to be launched by the end of that year. Later that year, the agricultural authorities of Gansu province said all preparations for potato futures had been completed.

Potato growing as poverty relief

Guizhou and Gansu province are expanding the amount of land they have planted in potatoes in accordance with a Ministry of Agriculture plan which calls for around 6.7 mln hectares of them by 2020. One out of 100 towns or villages in under-developed Guizhou province is Lutang, which now has much of its land for potato growing. The head of the village, Zhang Wei, says they have 1.15 mln kgs of top quality potatoes that they plan to distribute to farmers for free to use on 200 hectares of land. Local authorities say that as many as 60 percent of the households in the area living with poverty see the potato planting as a good method to help them generate income and two special cooperatives have been set up to keep prices stable and to ensure income. The planting area is expected to reach just over 660 hectares by 2018.

China to import seed potatoes from the UK

A potato deal signed in 2018 is expected to bring major benefits to Scotland, with around 70% of the 100,000 mt of seed potatoes exported annually from the UK coming from Scottish farms. Seed potatoes are varieties intended for replanting to produce new plants and tubers. They are grown in special conditions to lower the risk of disease. Scotland’s potato crop is recognized within the European Union for its high health status. The potato is now China’s fourth staple crop after rice, corn and wheat and demand for fresh potatoes is increasing at an annual rate of around 5%. “The rapidly-growing Chinese market offers huge potential for UK farmers,” said UK International Trade Secretary Liam Fox. “According to research by Barclays, around 60% of people in China would actually pay more for a product, just because they knew it was British.”

Frozen French fries

Only 10% of the national output is further processed into various (semi)finished products.

In the last three years, China’s rapidly changing lifestyles and eating habits have resulted in a booming fast-food industry. Chinese consumers, especially those who live in large urban areas, have accepted Western-style fast-food restaurants that serve French fries and other popular side dishes as a way of life in China.

China’s market year 2019/20 frozen French fries (FFF) production is forecast at 310,000 mt, a 10% increase from 2018/19 as a result of this year’s increased fresh potato production (see above). China imports the majority of its FFF from the United States. However, due to the additional tariffs China has levied on many U.S. agricultural products, the U.S. FFF market share fell from 64% to 53% from 2016/17 to 2018/19. As a result, forecasts China’s overall MY2019/20 FFF imports will decrease by 10%, to 129,000 MT. The next largest suppliers, Belgium, Turkey, and the Netherlands, together accounted for 40% of China’s FFF imports in MY2018/19.

Frozen French fries require raw materials compliant with strict requirements, such as shape, starch content, sugar content, and color. Therefore, processors usually contract with farmers to produce potatoes which meet certain quality conditions. After a poultry disease outbreak and other problems in that industry, which affected Kentucky Fried Chicken and McDonald’s, the largest buyers, production of frozen french fries has decreased considerably. Although the scare seems to be over, production is not expected to rise considerably soon.

Foreign investors

Still, a market like this is bound to attract international investors.

  • JR Simplot established in 1992 in Beijing’s Fengtai district, is a joint venture between US-based JR Simplot , McDonald’s and Beijing Agricultural, Industrial and Commerce General Company and primarily produces french fries and hash browns for McDonald’s and other East Asian customers. It was fined a record RMB 3.9 million for water pollution in April 2015.
  • McCain Foods started construction of a French fry processing facility in Harbin (Heilongjiang) in 2004. The new company, which was registered in the Harbin Economic and Technological Development Zone, was McCain’s first processing facility in Asia. The plant has had to cope with various problems like faulting water supply.
  • Aviko has a production facility in Minle (Gansu) since 2008, and in June 2014 signed another project in Zhangjiakou (Hebei), near Beijing. The latter is a partnership with Snow Valley Agriculture. The joint venture was dissolved in December 2018. Aviko acquired a 90% stake in Hongyuan Louis (Inner Mongolia) in Jan. 2020. The deal includes a factory with an annual capacity of 50.000 mt, potato storage, a semi-automatic cold store, boiler house, waste-water treatment and around 170 employees. Hongyuan Agriculture will stay involved as a 10% shareholder and closely cooperate with Aviko on amongst others the sourcing of potato. Hongyuan started exported frozen French fries in 2020.
  • Conagra has acquired TaiMei Potato Industry Limited, a potato processor in Shangdu (Inner Mongolia) in July 2014.
  • Farm Frites has signed an agreement with Inner Mongolia Linkage Potato Co. Ltd. in September 2014, to set up a joint venture in Chifeng (Inner Mongolia). The Joint venture will build a new french fry factory and target the premium segment of the Chinese french fry market. Inner Mongolia Linkage Farm Frites Co. will be for 75% owned by Linkage, while Farm Frites will own 25%. Production was to start in 2017, but the construction of the plant has been delayed and the project seems to have halted completely in 2019. However, Linkage has picked it up again by its own and the new plant started test production in August 2022.

The above list clearly indicates that while all international players are interested in developing the Chinese market, it has so far not been a smooth ride for any of them.

On the artisan side of the market, a Dutch initiative, Royal Patat, has started selling hand-cut french fries in Shanghai.

Top 3 brands

Instead of looking at volumes, this blog prefers to introduce ‘top brands’ from a popularity perspective. Here are the top 3 french fries chain outlets according to a Chinese consumer site.

1 Calbee Crazy Potato Calbee

2 Tudou Xinyuan (Potato Wish) TudouXinyuan

3 Mofa Tudou (Magic Potato) MagicPotato

Potato starch

China’s market year 2019/20 potato starch production is forecast at 450,000 mt, roughly 10% decrease from 500,000 mt in 2018/19, due to increased consumption in other sectors, leaving fewer fresh potatoes available for starch production. According to industry sources, starch production consumes small, irregularly shaped, or bad quality potatoes. The good weather conditions not only increased yield, but also generated good quality, which reduced potatoes available for potato starch production. Heilongjiang, Ningxia, Gansu, and Inner Mongolia are the primary potato starch producing provinces in China, accounting for over 70 percent of China’s total production.

Top Chinese producers of potato starch are:

Company Location
Huaou Starch Inner Mongolia
Lantian Potato Gansu
Beidahuang Potato Heilongjiang
Yundian Starch Yunnan
Weston Potato Qinghai

Potato starch can be used to make noodles, be it in combination with starches from other sources. Shanghai Suiquan Food Co., Ltd. produces ‘Potato Noodles’ with the following ingredients.

Water, potato starch, corn starch, cassave starch, salt, food additives (sodium dehydro-acetate)

Potato crisps

Industry sources estimate China’s market year 2017/18 sliced potato chip and fabricated potato chip production at 450,000 mt and 350,000 mt, a 7% and 13% year on year increase, respectively. The total turnover of this product group was RMB 29 bln in 2017.

Potato chips have become a popular snack food in China. Most international players are studying their options, and some of them, like Pepsi (Lay’s), have started local production. However, not any potato will do. Each must be precisely the right variety, grown into an ideal shape and size and available on the exact schedule necessary to supply the chip factories in Beijing and Shanghai. Potatoes grown by local farmers don’t always make the cut. Unless they are handled as delicately as eggs, they risk bruising — a common side-effect of China’s manual farming techniques and crude distribution methods. To ensure the yellowish color of its Lay’s chips, Pepsi also requires potatoes to

be low in both sugar and water content. The ideal specimen is about as large and round as a baseball. Even now, Pepsi’s two farms still produce only about 40% of the potatoes Pepsi needs in China.

Other major potato chip brands (manufacturers) in China are: Calbee (Calbee), Lay’s (Pepsi), Oishi (Liwayway) , Shanghai House (House), Carrefour (Jishijia). P&G has negotiated with a potential partner in China for the local production of Pringles.

Local production of crisps by multinationals is a great boost for the local potato growing industry. Lay’s is using potatoes grown in former desert areas in Inner Mongolia.

Top 3 brands

Here are the top 3 potato chips brands according to another Chinese consumer site.

1 Lay’s Lays

2 Capico Capico

3 Pringles Pringles

Capico is the only domestic brand in this list. Its producer, Dali Foods (Fujian) got listed on the Hong Kong Stock Exchange in November 2015. Dali is also one of China’s top producers of biscuits.

The following screenshot shows how the major brands seem to imitate Pringles’ packaging, while offering their chips for a significantly lower price.

PotChipsComp

The latest launch in this product group was from the Hengyou Group (Shantou, Guangdong). This company produces a range of potato crisps under the Bidetu “Peter Rabbit” brand.

The following table shows the top 5 selling potato crisp brands in China in 2019

Rank Brand Name Company Market Share

(%)

1 Lay’s Pepsi Group 37
2 Shuyuan Haoliyou Foods 27
3 Copico Dali Foods 19
4 Oishi Oishi 10
5 Pringles Kellogg’s 1

Mashed potato

The Chinese drive for developing novel foods is limitless. Baiguyou (Wuhan) has developed a range of instant mashed potato products under the Painini brand. It is packed in cups that can be filled with boiling water like cups of instant noodles. The product is available in several flavours, including: beef, walnut, curry, chicken, pumpkin, etc.

Potato-based instant noodles

Chinese researchers are developing a recipe and production process for instant noodles in which part of the wheat flour is replaced by potato flakes. This fits the efforts of the Chinese government to make the potato one of the country’s staple foods (see below) and will enhance the nutritional contents of instant noodles, possibly breaking the ‘junk food image’ of instant noodles. The following ingredients list appears in one of their publications.

Ingredients  ration (%)
Wheat flour 65
Potato flakes 35
Salt 2
Water as needed
Gluten 5
Complex phosphates 0.3
Sodium alginate 0.3
Soda 0.15

No such product has yet appeared on the market, but it is interesting to learn about these efforts. Other research institutes in China are working on producing regular noodles and bread replacing part of the wheat flour by whole potato powder.

Exports

The first Chinese potato chips were exported to the US in the course of 2015. However, it was not Capico, but Chak Chak, produced in Fuxin (Liaoning). Chakchak chips stand out by their bright colours, produced using natural anthocyanin. It is interesting to observe that an innovative product like Chak Chak can beat a generic version of the product (Capico) in getting accepted on the global market.

Chakchak

Potato as staple?

A discussion has started in China to improve the status of the potato as staple food. Vice-Minister of Agriculture Xu Xinrong posted a remarkable statement on the ministry’s website on January 9, 2015, entitled ‘strategies for turning potatoes into a staple’. In this concept, potatoes will gradually become China’s fourth largest staple food, after rice, wheat and maize. Xu Shaoshi, minister of the National Development and Reform Commission (an organization under the State Council), picked this up and added that potatoes will be mixed into bread, steamed buns and noodles to suit Chinese consumers’ taste and habits. the Ministry of Agriculture is planning for 50% of China’s annual production of potatoes to be consumed as a staple food on the domestic market by 2020.

As an emerging staple food in China, potatoes have to compete with bread, as introduced into our post on the position of bread in China elsewhere in this blog.

The Institute of Agro-Produce Processing Science & Technology of the China Academy of Agricultural Sciences is developing new applications of potatoes as staple food. One of the products in the pipeline is flour consisting of 35% whole potato powder and 65% wheat flour. Using machines also developed by the Institute, a range of pastas can be produced. In cooperation with Haileda Food (Beijing) it has developed a type mantou that consists for 30% of potato. The product was launched on June 1, 2015. The potato buns are yellower and harder than traditional versions. But they are more nutritious, containing extra vitamins and dietary fiber and less fat. The researchers have announced that they next step in this R&D project is to increase the potato content to 40% and further to 50%. Other potato products will also be developed, like: noodles, or bread.

 World Potato Congress in China

The 9th World Potato Congress (WPC) has been held in Yanqing county in northwest Beijing from July 28 to 30. More than 3000 representatives from over 30 countries around the world gathered in the capital for the top event by the global potato industry. More than 50 domestic and foreign well-known experts presented academic reports about the industry. Latest products and technologies were displayed during the event. There was an experience area showcasing potato food such as potato chips and potato mud to visitors. China Potato Expo, China Potato Congress and an international symposium on potato products and industrial development ran parallel to the WPC.

China Potato Expo 2016 was held in Kunming (Yunnan), June 27 – 29.

Experimental zone in Beijing suburb

Yanqing county in the northern suburb of Beijing is an ideal area to grow high-quality potatoes. The climate is perfect and the soil should produce bumper yields of the vegetable. Already the county has cultivated more than 10 varieties of potatoes at the seed stage. It is also the home of the newly established China branch of the International Potato Centre, a global scientific research organization that seeks to reduce poverty and achieve food security on a sustained basis in developing countries. The centre will be China’s first international agricultural research institution and will serve the rest of the Asia-Pacific region.

The Chinese Academy of Agricultural Sciences and the Beijing Xisen Sanhe Potato Co, one of the country’s largest seed merchants, have also set up shop in Yanqing, where they have been working on new strains of potatoes. The research and development at their facilities, and the new International Potato Centre should help increase production not only in the area but in the rest of the country. Plans are also underway to open a high-tech scientific park for potato research in Yanqing. The project will be a joint venture with neighboring Zhangjiakou in Hebei province.

Beijing Hengde Jiahui Equity Investment Co。 is looking to fund agricultural and food firms focusing on the potato industry, and has set up a center in Yanqing county.

Dutch potatoes in Inner Mongolia

HZPC of the Netherlands has signed an agreement with Geruide Potato Co., Ltd. (Inner Mongolia) to establish a potato growing base in Taipusi (Inner Mongolia). The joint venture was announced to start on January 1, 2016, and was projected to produce 50,000 mt of potatoes p.a. Although not officially announced, I assume that HZPC’s thinking is based on the expectation that it will become the main supplier of the above mentioned foreign potato processing plants in the region. However, so far (last check April, 2018) the project does not seem to have started yet.

Potato songs

Feng Xiaoyan, 52, a potato farmer-turned-entrepreneur, has even commissioned multiple potato-themed songs to help promote the consumption of potatoes. On a recent day, Ms. Feng appeared on a local television station to sing a warbling tune expanding on the tuber’s delights. “Fry up a plate of slivered potato, eat a slice of potato flatbread! Potatoes are our fortunate eggs, potatoes are our fortunate eggs.”

Potato research institute

Yunnan Normal University intends to set up a Potato Research Institute. The univeristy stated that the establishment of the Potato Research Institute is in line with the national development strategies of positioning the potato as a staple food, and is also in accordance with Yunnan’s development plan for a green economy, food safety, and plateau agriculture. It has set up a virus-free potato seed repository, with more than 1,200 germ plasma cultivated in China and abroad. It’s one of the largest in China in terms of potato genetic diversity.

Drinking potatoes

Mengjian Biotech (Inner Mongolia) has developed a health drink made from potatoes. The beverage has a high content of Superoxide Dismutase (SOD). It is not clear when the drink will be available for consumers.

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.

Bread in China – from snack to staple, though still for the young urban

Western style baked bread is not a staple of the traditional Chinese diet, but it has been quickly catching up among China’s urban middle class during the past 20 years, in which China’s baking sector has grown by 10% annually, and bread has been the main driver product. Bread was good voor 44% of the total value of the Chinese baking industry in 2018. The value of the Chinese bread market is expected to reach RMB 266.3 billion in 2020.

According to a staff member of the bakery chain BreadTalk, 80% of their clientele were foreigners, when she started working there in 2005. This has changed completely, and now Chinese are the main customers.

A product for the young and the affluent

When you take the time to observe the activities at any bread store in a Chinese city, you can observe that at least three quarters of the regular domestic patrons are (young) professionals, white collar workers. Older people still regard bread as something that is foreign. They do not dislike it, but it is something you consume occasionally, as a snack.

Moreover, bread is still regarded as relatively expensive. Teenagers and students like to ‘hang out’ in and around bread and cake shops, because they like to cozy ambience that all chains like to create. However, they only occasionally actually buy Western style bread or pastry, because it is too expensive.

Chinese like it soft

When bread first started to come up in the mid 1980s, the preferred type was the soft, white bun, with a relatively sweet flavour. It had to be extremely soft. As one European bakery technician with whom I used to travel through China put it like this:

‘Chinese bread should be made of such a texture, that you can put it in an ordinary envelope, put a stamp on it and send it to your friend. When your friend opens the envelope, the bread should restore to its original shape’

This has started to change recently. Chinese consumers are gradually learning to appreciate more salty types of bread, bread with harder crusts, and whole grain bread.

Bread is also gaining ground in the breakfasts of more and more urban Chinese, replacing porridge, fried dough sticks (youtiao) and steamed bread (mantou).

The sandwich is starting to replace the bowl of (instant) noodles a Chinese office worker typically eats for lunch. The advantage of bread over these traditional breakfast and lunch items is time: you can buy a week’s supply of bread, while traditional breakfast and lunch need to freshly prepared.

Facts & figures

The Chinese consumed 2 mln mt of bread in 2016. That is a lot, but the per capita consumption of bread is approximately 2 kg p.a. (in the urban regions about 3.2 kg), compared to 10 kg in Japan and 9 kg in Taiwan. Insiders expect that the Chinese bread consumption will gradually rise to the level of Taiwan, which means that the growth potential is enormous.

According to the above estimates, the current Chinese bread consumption already exceeds 1 million mt p.a. This would grow to 9 million mt p.a., if the population would remain the same. If we apply the Chinese estimate for the population by 2020, the Chinese bread consumption would rise to 12.5 million mt p.a. The estimated development is reflected in the following table.

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Market structure

Bread is a localised business in China. There are very few regional suppliers, let alone producers that sell on a nationwide scale. It is also still a very Chinese business. Multinationals are present, but do not dominate. The largest bakery company in the world by far, Grupo Bimbo, has a very small presence in the market with just one plant.

One of the few companies with such a status is Mankattan Food Co., Ltd. Mankattan has been established by the Belgian Artal Group in 1995. Mankattan has achieved a large market share through direct distribution of bread products to retail, food service and school locations. The main company is located in Shanghai, with subsidiaries in Beijing and Guangdong, giving it production centres in China’s most densely populated regions.

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Another successful example is Taoli (Toly) Bread (Shenyang, Liaoning). However, Taoli also produces traditional Chinese bakery items like mooncakes and zongzi. Still, the fact that the word ‘bread’ is part of the company indicates that it is its leading product. Taoli was listed on the Shanghai Stock Exchange in December 2015. Taoli generated a turnover of RMB 2.939 billion in the first half of 2021; up 7.32%.

TaoliBread

Worth keeping on your radar is also Ranli Food (Zhangzhou, Fujian). This producer of biscuits and pastry launched a pumpin bread in 2019. Its pumpkin content is at least 16%, creating a unique flavour and (natural) colour and considerably increasing the fibre content.

Another healthy bread newly launched in 2019 is ‘sugar-free low calorie low fat’ whole grain bread by Shanghai-based Laidalin. A blogger claims that ‘it is so light, that if feels like eating air bubbles’. I personally prefer a firmer type of bread for my early morning cheese sadwhich, but as introduced above: Chinese like it soft.

Several domestic and foreign bakery chains are gaining ground on large Chinese bakery companies like Christine and Holiland. The South Korean chain Paris Baguette now has 37 stores in China, the Taiwanese chain 85°C Bakery Cafe has about 145, the Singaporian venture BreadTalk 170, and the South Korean chain Tous les Jours 140. Starbucks Coffee is also developing in this direction in China. A good sign of the growth potential of this sector is that BreadTalk’s net profit increased 91% in 2017 to RMB 21.85 mln.

Some experienced players from Hong Kong have also expanded to the Mainland, like: Queen’s Cake Shops, Maxim’s and Aji Ichiban, which may sound Japanese, but has Chinese founders.

A common feature of all chains in this category is that they tend to be located in office buildings and high end shopping centres, close to their largest market segment.

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Case study: Euro Bakery, an ambitious Dutch investor

Euro bakery, a 130 staff bakery in the Beijing region founded by Dutch investor Henny Fakkel, recently received a loan from the Netherlands Finance Development Company (FMO). The bakery is now expanding its business with a long-term EUR 2 mln loan from FMO.

Euro bakery specialises in traditional as well as new-style bread and cake variations, from European-style big loaf bread, rolls, whole wheat sourdough breads to pastry varieties, muffins and cookies, Danish pastry and also cheese savoury cookies. The bakery did well over the past years to tap into the growing popularity of bread products in China’s capital. The bakery factory of 135 staff caters for cafes like Costa coffee, Pacific coffee, and for companies like IKEA, International schools, Compass Group, Sodexo, airport catering, Pizza Express, embassies, hotels, restaurants and wholesalers.

EB2

Euro bakery has come a long way since Henny Fakkel and Grace Wang started the business in 2006. The bakery has managed to extend its large-client base to 60, and with a staff of 135, the bakery produces seven days week and distributes its products all over China via 450 delivery points.

Euro bakery wants to expand to 4000 m2 and build its own bakery education institute to train itd staff and disadvantaged young people to give them the chance to follow a baking course.

Frozen technologies

Insiders believe that the penetration of frozen technologies in baked goods will increase in the future. In China, where labour is abundant and cheap, it may be counterintuitive to see penetration of a high-end technology for production of baked goods growing. However, increasing complexity and diversity of products in industrial bakeries is driving the requirement for frozen solutions. It is already deployed in 20% of western style baked goods in the country.

In the artisanal sector, which is about 56% of the Chinese bakery industry by value, the penetration of frozen technologies is very low. The highest penetration of frozen technologies is in branded/packaged baked goods. This trend is changing and we are seeing many local and medium-sized bakery companies also interested in frozen technologies. Ingredient manufacturers should be wary not to miss these opportunities for specialist ingredients for frozen bakery products.

Key target for food ingredients

Bread is pointed out by Northern Sunlight, China’s largest distributor of food ingredients, as one of the most interesting growth markets.

This is corroborated by a the Director of the China Food Additives Association (CFAA), who claims that he regards Bakery China as the most prominent competitor of CFAA’s Food Ingredients China (FIC). Bakery China is organized annually in May, covering 9 halls of the Shanghai New International Exhibition Centre. Apart from baking products, it  also covers ice-cream and pasta and all ingredients for the entire product range.

Virtually all Chinese bakers are using bread improvers, compound ready-to-use ingredients, comprising enzymes, emulsifiers and a various other additives. I have already introduced the structure of the market for flour and baking ingredients in a previous blog. You can see more details there.

Here is the ingredients list of Mankattan Coarse Grain Toast Bread:

Wholegrain wheat flour, water, HFCS, shortening, yeast, bran, salt, gluten powder, flavour, additive [bread improver (starch, vitamin C, enzymes, calcium propionate)].

The way the ‘additive’ is broken down in individual ingredients is prescribed by law. Although not stated verbatim, it indicates that the producer does not purchase those ingredients separately, but buys a ready-to-use bread improver.

Other ingredients include various shapes and textures of fruits (e.g. dates), vegetables, nuts and meat, cheese powder, yeasts, nutrients for fortification, flavours, special oils or fats, fresh butter, cream, shortening, starch and modified starch, chocolate in various presentations, dairy based ingredients, and much more.

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.