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

China’s market year 2017/18 fresh potato production is forecast at 97 mln mt. 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.

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 2017/18 frozen French fries (FFF) production is forecast at 250,000 mt, a 10% increase from markt year 2016/17, driven by strong domestic demand. Experts forecasts China’s market year 2017/18 FFF imports at 120,000 mt, about a 5% decrease, due to increased domestic production. The United States continues to dominate China’s FFF import market.

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.
  • 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.
  • 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 seems to have been delayed.

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.

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 2017/18 season potato starch production is forecast at 540,000 mt, a 20% increase from the previous year. Imports are forecast at 41,000 mt, up 10%. On September 16, 2017, China’s Ministry of Commerce extended the countervailing duties levied on potato starch imported from the EU for another 5 years. Potato starch imports from the EU are subject to countervailing duties ranging from 7.5% to 12.4%. The countervailing duty is not the only duty that applies to EU potato starch exports to China. The countervailing duty is in addition to an anti-dumping duty ranging from 12.6% to 56.7%, dating back to August 2006. The anti-dumping duty is up for review in February 2018..

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 chips

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.

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 chips under the Bidetu “Peter Rabbit” brand.

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.

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.

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.

 

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Date (jujube) Processing in China – spotted in New Mexico

China is the kingdom of dates (jujubes or ziziphus jujuba). The national output was 5.62 million mt in 2017 up from 3.9 mln in 2005. The top region was Xijiang with 2.7 mln mt. They come in various varieties; so many that the New Mexico State University has started exploring them as alternatives for local jujubes.

The Chinese have known them for their medicinal properties, but have also been using them as snack food (leisure food) for ages. Now them are also processing dates into various food ingredients.

Jujube cake (Zaogao)

Along most the streets in Tianjin, you will find these little bakery shops. You don’t need to read Chinese to be able to spot one. Not only do you have the amazing smell coming from these small window bakeries. They are also kind enough to display these amazing breakfast cakes in the window. These cakes are made from dried jujubes and normally come 3 for RMB 10. After just one bite, you will find that they are not only sweet but also moist. These are a great alternative for someone in the mood for a light but filling breakfast. They can also be used for a snack between meals.

Zaogao

Medicinal properties

Dates are packed with nutrients: vitamins, minerals and various alkaloids. Chinese dates are also a great natural source of antioxidants. Jujube fruits assist very well in a healthy digestive system through its high fiber content, saponins and triterpenoids which prevent constipation, cramping and other gastrointestinal disorders. Chinese dates are said to support the strength of bones, muscles and teeth. They support the health of the nervous system and assist in alleviating stress, sleeping disorders and anxiety. The high antixodiant levels in Chinese dates take care for immunity, blood detoxification and a healthy skin.

A special type of dates with medicinal properties are grown in Leling (Shandong). The dates there belong to the ‘golden thread (jinsi)’ variety and are very rich in selenium and vitamin C. They also contain considerable amounts of calcium, phosphorous, potassium and iron.

Image                      Image

Small fruits big business

Dates have become such an important product now, that they have recently played a leading role in a civil law suit. A Shanghai-based company, Dashanhe, produced and marketed dates with Hetian Tianzao (Khotan Heavenly Dates) printed on the packaging. Heavenly Dates, however, is a brand owned by a company in Xinjiang, Tianhai Oasis. This company produces a range of luxury date products (see picture), and sued Dashanhe for infringing on its brand. It won the suit. Dates have become big business in China.

Tianzao

 

The Kunlunshan Date Co. (also Xinjiang)’s Khotan Jade Dates (Hetian Yuzao) have been incorporated in ‘China 100 Best Agricultural Products’ in 2013. This company was founded on the basis of a military operated collective farm in 2005, and was reorganized into a limited company in 2012. Dates are indeed a conduit to success in China.

Here is a video demonstrating the processing of dates in China.

Innovative products

Innovation is the trend in the present day Chinese food industry. This innovation is taking place in a number of different directions, one of which is using traditional ingredients to produce foods and beverages that suit the lifestyle of modern hasty city dwellers, but still remind them of the traditional flavors, and retain the medicinal activities ascribed to them according to traditional Chinese medicine (TCM).

An example of such a product using dates as ingredient is: date juice breakfast milk, a good example of one of the many formulated dairy drinks produced in China at the moment.

Here is a reference recipe

Image

Stabilizer RH6 is a branded compound consisting of: sucrose ester, monoglyceride, sodium alginate, CMC and potassium dihydrogen phosphate. Ajiao (or ejiao) is a Chinese medicinal substance obtained from donkey skin that is often used in combination with dates. The complete text of the production process indicates that low calorie sweeteners can be used to. It is an experimental recipe.

Fuyuan Food (Binzhou, Shandong), is also producing a date enriched with ejiao: Changsi brand Ejiao Royal Dates. Another, sweeter and stickier, version is sold under the Selective (Zhenxuan) brand (Zibo, Shandong).

The latter’s ingredients list is as follows:

Dates, sugar, maltose syrup, ejiao (0.5%), food additives (citric acid, potassium sorbate, sodium benzoate, sodium pyrosulphate).

An interesting fusion between Chinese dates and Western food and beverage is: Manccio Jujube Coffee, produced by Manccio Co. (Xi’an, Shaanxi). Coffee is rapidly gaining popularity in China, but it still has a Western character. This product is therefore marketed as ‘China’s own coffee’. Its ingredients list is simple.

Date powder, instant coffee, microcrystal cellulose.

DateCoffee

Manccio cooperates with a coffee supplier in Malaysia. I haven’t been able to sample the product myself, but I will report on the taste as soon as I have had an opportunity.

Yimin Modern Farming (Jiaxian, Shaanxi) has developed a range of date wines and spirits.

Date-derived ingredients

Some Chinese companies have developed food ingredients from dates like date powder. Our database includes a recipe for a type of bread using this ingredient. Dates are also used in babao porridge, birds nest soup, and zongzi, introduced in another posts of this blog.

The Food Ingredients China (FIC) 2018 (Shanghai, March 22 – 24) exhibitor list includes the following date products:

Ingredient number
Concentrated juice 3
Powder 7
Jam 1
Particles 1

Eurasia Consult’s database of Chinese industrial recipes includes numerous products with dates as a main ingredient, both traditional and innovative, including products like: date cake, date pudding, date juice, etc.

Date sausage

As the world’s date country par excellence, Chinese food technologists like to develop new foods with date as one of the ingredients. A recent proposition I picked up is a date flavoured sausage. The meat is a mixture of chicken and pork (ratio: 3:7), with dates added as a paste, made by mixing water and dates (ratio: 1:1). The total ingredients list is as follows.

Chicken meat, pork, ice water, modified starch, protein powder, glucose, salt, sugar, compound phosphate, koji red colour, pork flavour, red date pulp, red date paste, white pepper powder, ethyl maltol.

Nestlé adapts to Chinese taste

Nestlé has deftly noted the Chinese liking for dates and date flavoured products. The company has launched a red date flavoured oatmeal under the Nesvita brand. The product contains 400 gr of date powder per 1000 gr of finished product.

Nesvita

Branded dates

The following table lists the top 10 branded date products of 2017. The brand logos are shown in the figure.

Rank Brand Region
1 Haoxiangni Henan
2 Hetian Yuzao Xinjiang
3 Ruoqiang Hongzao Xinjiang
4 Loulan Miyu Hubei
5 Sanzhisongshu Anhui
6 Loulan Hongzao Xinjiang
7 Qiangdu Xinjiang
8 Baicaowei Zhejiang
9 Liangzi Puzi Hubei
10 Tianjiaohong Shanxi

The number one: Haoxiangni Jujube Co Ltd.

Haoxiangni (litterally: ‘I think of you a lot’), based in Xinzheng, Henan province, is the only listed company in China’s date industry. It is combines R&D, manufacturing, and distribution of jujube series products. The company primarily offers various jujube products, including royal jujubes, crystal jujubes and fragrant jujubes, and others; jujube chips and donkey-hide gelatin jujube chips; preserved products comprising preserved jujubes, wild jujubes, and ejiao (donkey-hide gelatin, an ingredient of traditional Chinese medicine TCM) jujubes; and dried jujube products, such as dried crystal jujubes and dried fragrant jujubes. It also provides jujube powders, which include original flavor jujube powders and high-calcium jujube powders; and honey products, such as jujube honey and acacia honey, as well as prepared and crisp jujube products, jujube beverages, and other series of products. The company was founded in 1992 and is based in Zhengzhou (Henan).

Jujube is not a rare food, but Haoxiangni made it into a luxury good, by selling gift boxes of jujube for several hundred yuan. The brand’s high-end image was its main attribute but now it is hard to maintain. After cooperating with Trout & Partners Ltd, a global consulting firm, in 2012, Haoxiangni started an overhaul of its brand image in 2013 by promoting low-price products for less than RMB 100.

According to Shi Jubin, the chairman of Haoxiangni, the company will focus on quality rather than number of franchisees by closing 600 of its 1819 stores, according to a statement released on the company’s website.

The government of Henan has included Haoxiangni in the provincial Immaterial Cultural Heritage in December 2014.

Haoxiangni suffered from the government’s ongoing anti-corruption campaign. It saw a decrease in revenue, though small, in 2013. It was the first time it had seen a decline in revenue since being listed in 2011. The company filed a turnover of RMB 973 million for 2014, up 7.10%. 65% of that turnover was derived from the company’s dedicated outlets. Unfortunately, the first quarter of 2015 turned out particularly disappointing, with a drop in net profits of almost 47%. Insiders attribute this to the ongoing change of strategy from focusing on special shops to multiple channels. Haoxiangni is also in the midst of a construction project. These investments are eating up a considerable part of the profit, but the company is still regarded as healthy and promising. Haoxiangni is also broading the raw material of its products, like: lotus seeds and yin’er (silver fungus). The first quarter of 2017 saw a huge increase again with a turnover of RMB 1.2 bln, up 300%.

HaoxiangniStore

 

Haoxiangni has also sponsored a ‘China Date Culture Museum’ in its home town.

The government of Xinzheng has also adopted date growing a symbol of the local economy. The city’s website is laden with date flavour.

To counter the problems of relying to heavily on one product line, Haoxiangni launched a broad range of fruit snacks like dried fruits based on different kinds of fruits in 2018.

As part of the same diversification strategy, Haoxiangni has also launched a fruit nectar made from dates and hawthorn. The latter is a typical Chinese fruit, used in the famous North-China winter snack tanghulu.

Interesting new comer

A relatively new player in this market that is arousing nation wide interest with innovative products and promotion campaigns is Baiweicao (Bee & Cherry) (Hangzhou, Zhejiang). It is a general producer of nut and fruit-based snacks. One of its flagship products is a combination of those two: dates stuffed with walnut, marketed under the Baobaoguo (literally: Wrapped Fruits) brand name. It is packed in a series of boxes with drawings of various animals.

Eurasia Consult’s database of the Chinese food industry includes 259 companies producing date products.

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.