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)

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.

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 baked then 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.

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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China’s breakfast revolution

Introduction

The meal that most people find hardest to change is breakfast. Most people are willing to experiment with different foods during lunch or dinner, but when you are still waking up, you prefer to do so with those familiar breakfast items.

However, diets in China, including breakfast, are moving to incorporate more western-style foods, driven by economic growth, urbanization, and market liberation. Yet, few studies use microeconomic data to identify the factors driving the trends, particularly to link the rapidly changing demographics to specific western-style foods. Research jointly conducted by the Chinese Academy of Sciences, Washington State University, North Dakota State University, University of Florida, and Economic Research Service at USDA used household-level data that were collected in Beijing, Nanjing, and Chengdu in recent years to provide new insights on this issue.

The data were collected through a week-long food diary approach, asking the selected households to record all the detailed food consumption by meals (breakfast, lunch, and dinner), including each ingredient prepared or eaten in the meal, no matter the meal occurred at home or away from home. The tracked food items includes each item’s name, price, purchase venue, and amount consumed for that meal, which allow us easily to identify and distinguish the western-style items from traditional Chinese diets. A full list of western style breakfasts and the observed frequency for each item are presented in Table 1.

Table 1 Observed Western style breakfast items

Tab1

Western-style Foods Have Gained Significant Popularity

Most of Western-style breakfast menu items can be found on Chinese dining tables for breakfast, and they have become increasingly popular in urban areas. In Table 1, all observed western breakfasts are grouped into three categories, including bread and cake, milk, and other western foods. Each category further includes several kinds of specific western foods. Clearly, 83% of surveyed households consumed at least one kind of the listed food in Table 1 during the survey week. Of which, fluid cow milk is the most popular, with 564 households reported consumption, accounting for over 70% of the entire sample. Following fluid cow milk are the bread and cake categories, with 47.3% and 16.1% of surveyed households reported consumption, respectively. Although less frequently consumed, it is notable that sausage, cheese, and coffee, three very western items, have been incorporated in Chinese breakfast menus.

Urban households more frequently incorporate the western-style foods in breakfast as income rises

Table 2 Frequency of the Western Foods to Be Consumed In Breakfast in the Survey Week

Tab2

On average, there were about four breakfasts out of seven (in the survey week) where at least one kind of western food was consumed for each household. Income, as expected, has a significantly positive effect. The number of breakfasts included at least one kind of western-style food is 3.83 for the lowest income group, while it increases to 4.63 for the highest income group. Similar trends can be found for bread, milk, and other western foods consumption in terms of meal number. For bread, the weekly consumption frequency for the highest income group is 2.42 breakfasts, which is one breakfast more than that for the lowest income group.

The positive income effect can also be seen in terms of per capita consumption (Figure 1).

Fig1

Fig. 1: Per Capita Consumption of the Western-Style Foods in Survey Week

Breakfast cereals

Although cereals are still restricted as breakfast item to a small number of Chinese households, the market is growing. Major players, including Cereal Partners Worldwide, General Mills, Kellogg, and PepsiCo, have all targeted the market in some way. Breakfast cereals are predicted to see 6% value CAGR. Manufacturers will take their inspiration from traditional Chinese medication by offering products containing Chinese ingredients such as red dates, goji berries, and black sesame. Sugar-free products are also a huge rising trend. In 2015 the revenue of general cereal sales amounted to RMB 2.805 billion, whereas in 2022 the market is expected to more than double, reaching RMB 6.2 billion.

A domestic player to watch is Guilin Sea Mild Biology Technology Development. With its brand Sea Mild it accounted for a value share of 18% in 2016 as well as the year before. Guilin Sea Mild specializes in hot cereals, which require the addition of hot water or milk. The company built the overall leadership mainly through its well-established brands and strong distribution network. Guilin Sea Mild is also positioned as mid-priced and thus benefits from a broad potential customer base. The company mainly targets elderly consumers with products such as Seamild Nutrition Cereal for the Elderly, High Iron Red Dates Cereal, and High Calcium Walnut Cereal.

Women in command

Women (mothers) play an important role in deciding the ingredients on a Chinese breakfast table.The western food consumption varies by demographics, including the characteristics of the female head of household (FHH). In Figure 2, we can see that families with wives who hold college or advanced degrees more frequently incorporate western foods in breakfast than other families. It is also the case for per capita western food consumption, with 1.26kg for families with a highly-educated FHH versus 0.98kg for others.

Fig2

Fig. 2: Wife’s Education Effect on the Western-Food Choice Is Positive

Younger Generations leading the Westernization of Chinese Breakfast

Family composition also matters, but the effect differs across food types. For instance, families with children tend to consume more bread at breakfast than other families, but the difference is not that remarkable for milk and other western foods. Also, families with adolescents or young adults more frequently consume bread at breakfast than their counterparts, but families with seniors consume bread less frequently, but more frequently consume other western food products. Families with dual-career parents do not present consistent differences from single-career families.

Table 3 Effects of Family Composition on the Western Food Consumption

Table2

Regional Effects Are Significant

Western food consumption differs remarkably across cities. Beijing is leading in consuming western foods in terms of the number of breakfasts consuming western foods. On average, there are 4.42 breakfasts including at least one type of western-style food, which leads Chengdu by 0.42 breakfast meals and Nanjing by 1.23. Similar comparisons can be found if we focus on bread, milk, and other western foods. In terms of consumption quantity, however, Chengdu takes over the leading position with per person consumption of1.53kg, nearly double the level of Beijing (0.85kg) and Nanjing (0.79kg). It is noted that the differences across cities may not exactly reflect the regional difference as these surveys in three cities were not conducted at the same time.

Fig3

Figure 3: Western Food Consumption by City

Entrepreneurial activities

A number of companies have already started cashing in the above mentioned trends by launching foods and beverages specifically formulated for breakfast. Several dairy companies have launched breakfast milk, like Yili’s Oat Milk introduced in an earlier post. In my post on public nutrition in China, I selected a fortified bread from Oishi that is also marketed as a breakfast food. The common element in all these products is: get all the nutrients you need from one single sip or bite.

New policy = new opportunities

In 2016, many roadside breakfast stands disappeared in several Chinese cities, as the nation set out to improve city appearance and food security management. However, that also meant fewer breakfast locations for local residents, opening the door wider for higher-quality ones. Choices used to be mainly limited to international giants, such KFC and McDonalds, but not anymore. Local companies such as Doujiang Ai Youtiao, a Shanghai-based start-up focusing on data-management and freshly-made breakfast, have created a “second breakfast table” for consumers (see photo). The Shanghai-based start-up has many stores in residential communities, offering Shanghai-style local foods and traditional Chinese breakfast, including youtiao (fried bread sticks). Sales are monitored for adjusting taste and service. Moreover, it also boasts a system that can analyse customers’ eating habits and offer suggestions based on previous purchases. By 2021, sales of breakfast foods at convenience stores is expected to exceed RMB 840 billion in China, while the total sales of breakfast foods in the country will reach RMB 1.94 trillion, data from a 2016 survey showed. Now, many Chinese start-ups have set their eyes on the breakfast market, trying to woo more customers seeking high-quality king-like meals with advanced technology and more convenient services, including Baoxiaotuan, a start-up founded by the founder of Steamed Stuffed Bun Restaurant, Qing Feng.

Conclusions

The western-style foods, in particular bread and milk, have gained popularity in China and become an important part of urban Chinese breakfasts. In the future, with further income growth, the demand for the western foods will continue to grow remarkably. This finding has important implications for agricultural production and food processing industry. Since making bread requires higher protein wheat flour relative to making noodles, fried dough (youtiao), and steamed buns (mantou). The increasing demand for bread herein is challenging China’s wheat breeding and high-protein wheat production. A potential to rely on imports might be a solution considering China’s limited land for high-protein wheat production such as hard red winter and hard red spring, and its relatively logged wheat breeding technologies.

Regarding milk, it is well known that the recent milk safety incidents such as melamine-contaminated baby formula have terribly damaged consumers’ confidence in consuming domestic produced milk and shocked milk production in China. The fact that Chinese consumers are demanding more milk with the growing income and health desire, however, is unchanged according to our findings from this study. Therefore, how to supply sufficient and safe milk becomes a critical question for policymakers and milk industry to pay enough attention. The western-style food consumption is also significantly related the female head of household’s education achievement and family composition. Particularly, the researchers found that younger generations in urban household are leading the trend for westernization of Chinese breakfasts. Since people often formed their food preferences at young and will stick on when aging, the findings thereby suggests that western-style foods will be included in all age groups in the foreseeable future. Meanwhile, the FHH’s education is found to have a significantly positive effect on western food consumption, both in frequency and in consumption level. This result suggests that any effort to promote western-style foods in China’s market can increase returns by targeting the FHH.

The other direction: the sophistication of traditional Chinese breakfast

Against the background of growing nationalism in China, it will be no surprise that the opposite of the westernisation of Chinese breakfast, the sophistication of traditional breakfast foods, can also be observed. A good example is a recently opened fast-food outlet of the famous Goubuli Baozi (steamed fill buns) restaurant in Beijing. Apart from its steamed buns, the menu also features typical breakfast items like jianbing and doufunao.

Jianbing resemble French crêpes and are sold on almost every corner of the street in Beijing during breakfast time. The ones sold in Goubuli include Peking duck jianbing cooked with cucumber, sliced Peking duck, pickles and the sweet paste of flour. Three other varieties of jianbing are available: traditional Tianjin-style; bacon; and seafood. The pictures compare a jianbing as sold by street vendors and Goubuli’s Peking Duck jianbing.

JB-street     JB-GBL

Doufunao literally means bean curd brains and is made of soft silken bean curd with sauces and garnishes usually served sweet in southern China, and salty in northern China. At Goubuli it is topped with crumbs of mahua (fried dough twist, Tianjin’s most famous snack), rousong (meat floss), and furu (fermented bean curd). This combination makes each spoonful of doufunao tasty and complex thanks to the savory furu and soybean paste, crispy mahua, and silken bean curd.

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.

 

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.

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.

Image

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.

Image

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.

TaoliBread

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.

Image

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.

Eurasia Consult’s database includes 941 industrial producers of bread.

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.

 

The market for flour improvers and ingredients in China

During a conference held on May 15, 2017, experts stated that the value of the Chinese market for flour-based foods is RMB 600 bln.

Flour is an important food ingredient in China, both for the industry and the consumers. The nation currently consumes 70 mln mt of wheat flour per year. When I first came to China to study in 1975, flour and flour based products were still distributed using a system of coupons. When you bought biscuits in a shop, or ordered a bowl of dumplings in a restaurant, you were not only required to pay with cash, but also with grain coupons denominated in the weight of what you had purchased.

Those days lie behind us and flour is now available in abundance. However, it is still regarded as a strategic product. This is reflected in the selection of flour as a key carrier of nutrients in the state sponsored public nutrition program.

Look at the regional breakdown of the (wheat) flour production during the first 3 quarters of 2014, and the in- or decrease compared to the same period of 2013.

Region Volume(mt) Growth(%)
China 101,475,458.45 4.67
Henan 37,717,922.56 2.33
Shandong 17,569,835.57 0.01
Anhui 11,239,363.39 12.56
Jiangsu 9,227,736.91 14.53
Hebei 7,130,011.85 4.63
Hubei 4,027,552.51 23.81
Shaanxi 3,996,396.22 6.17
Guangdong 2,008,140.48 4.34
Sichuan 1,483,742.89 -4.53
Fujian 993,425.00 -0.32
Gansu 981,784.34 -6.21
Xinjiang 974,227.03 3.75
Zhejiang 612,683.37 -5.9
Inner Mongolia 612,306.00 -8.33
Heilongjiang 489,477.20 0.45
Beijing 482,013.13 4.42
Liaoning 394,503.00 42.94
Ningxia 350,651.32 -2.13
Hunan 197,792.00 0.55
Tianjin 181,035.00 -36.91
Guangxi 173,798.00 -0.11
Shanghai 170,038.61 52.65
Shanxi 125,979.65 -37.2
Qinghai 103,215.42 43.02
Chongqing 98,978.00 2.66
Yunnan 84,876.00 3.05
Tibet 16,610.00 15.44
Jilin 16,070.00 10.72
Guizhou 10,725.00 -59.55
Hainan 4,568.00 24.44
Jiangxi

Decrease in demand deemed temporary

The demand for flour has been decreasing steadily during the past few years.

Season demand

(mln mt)

2012-13 97.10
2013-14 96.30
2014-15 92.00
2015-16 90.00

However, insiders name the gradual decrease of the population growth as the major factor behind this trend. They therefore expect that the demand for flour will start increasing again with the population growth that will be caused by the loosening of the family planning policy.

Specialty flours

Formulated flours, i.e. flours specially formulated for a specific end-product like dumplings, fried dough sticks (youtiao), steamed bread (mantou), etc., are gaining popularity in China. This makes the country a market that suppliers of various flour ingredients cannot afford to ignore. Apart from enzymes, emulsifiers and other ingredients commonly used internationally, a number of vitamins and minerals are also allowed to be added to flour.

This chain comprises four main types of companies, which  we will indicate using single letters:

Letter refers to
M Millers
E End-users, the companies that produce bread and other products, and consumers
I Producers of compound flour improvers
A producers of addtives and ingredients

 

In situation 1, by far the most common chain, the flow ends at the end-users, that receive premixed flours, which contains various ingredients. The end-users only add yeast (when needed), and ingredients as required by their recipes. The end-users in this situation are typically smaller companies, producing more standard products, and consumers.

Image

The larger end-users prefer to assign the millers to produce tailor made premixes based on their own recipes. The top millers can also assist the end-users in optimizing their recipes.

Image

Small and most medium sized bakeries do not buy single ingredients. They buy flour improvers and selected the improver that suits each of their recipes best, usually by a trial-and-error. Small bakers are open to exchange their experience with flour improvers when they meet during conferences, trade fairs, etc., and nowadays also on the Internet in one of the numerous trade related chat rooms.

In both situations, the improver manufacturers are the main target for suppliers of ingredients. Improver companies are usually established by scientist with specialist knowledge needed to select the ingredient for their flour improvers. Using this same knowledge and experience, they can help end-users optimizing their recipes. A very practical side of this is that it makes manufacturers of improvers relatively easy to talk with for suppliers in general and non-Chinese ones in particular.

The second in line as target for suppliers of flour ingredients would be the top millers, with sufficient in-house R&D capabilities.

Eurasia Consult’s database includes 641 producers of flour.

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.