China Citrus Industry : Current Status and Future Growth...Key Producing Provinces Output Source:...
Transcript of China Citrus Industry : Current Status and Future Growth...Key Producing Provinces Output Source:...
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China Citrus Industry :
Current Status and
Future Growth
Yi Shen
Technical Manager, Citrus
Firmenich China
Sept. 2013
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Agenda
Current Status of Citrus Industry in
China
Citrus Processing Industry in China
Citrus Juice Consumption in China
Outlook of Chinese Citrus Industry
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Current Status of
Citrus Industry in
China
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Current Status of Citrus Production in
China
Developed rapidly in both acreage and yield during
the past 30 years
In 1990, citrus acreage reached 1.14 million
hectares, ranking first in the world.
In 2008, China became the world’s largest citrus
producer
Mainly for fresh market, with only 5% for processing.
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Citrus Production and Acreage in
China
0
5000000
10000000
15000000
20000000
25000000
30000000
35000000Citrus Production (tonnes)
Production (tonnes)
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
Area Harvested (Ha)
Area Harvested (Ha)
Source: FAOSTAT
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Citrus Production (China vs Brazil, tons)
0
5000000
10000000
15000000
20000000
25000000
30000000
35000000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
China Citrus
Brazil Citrus
Source: FAOSTAT
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Citrus Growing Area
Large area suitable for citrus cultivation
90% planted in hilly and mountainous
regions
19 provinces in China can grow citrus
9 provinces contribute 95% of total citrus
production
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Key Producing Provinces
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Key Producing Provinces Output
Source: CRI
Citrus Output in 2011-2012,Tonnes
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
4500000
5000000
柚 Pomelo
橙 Orange
桔 Tangerine
柑 Mandarin
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Citrus Strategic Location
- Four Citrus Zones
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China: All Citrus by Varieties
Source: FAOSTAT
Grapefruit (inc. pomelos)
12%
Tangerines, mandarins, clem. 42%
Oranges 21%
Citrus fruit,N.E.S 21%
Lemon ,Lime
4%
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Changes in China Citrus Varieties
The structural changes of citrus varieties in China (Tons)
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Grapefruit (inc. pomelos)
Tangerines, mandarins, clem.
Oranges
Citrus fruit,NES
Lemon ,Lime
Source: FAOSTAT
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Citrus Processing
Industry in China
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Mostly as Fresh Fruit for Domestic Consumption
(92%)
Mandarins and oranges represent 54% and 32% respectively of total fresh
consumption.
Per capita consumption of fresh citrus in China is 13 kg per year, close to world
average 17 kg.
As Fresh Fruit for Export (3%)
China exports a small proportion of its citrus production
Most are mandarins
Mostly to SE Asia and Russia
For Processing (5%)
Canned Citrus / Citrus juice extraction / Others
Citrus Utilization in China
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Canned Citrus Industry
China is in the leading position
Produced about 400,000 MT canned citrus in 2011
Mandarins are the main raw materials for canned citrus
Mostly for export : World largest exporter
Labor Intensive and manual work
Labor costs are up 40-50 %
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Tangerines / Mandarins for Processing
in the World
660, 46%
320, 22%
158, 11%
100, 7%
85, 6%
38, 3%
35, 3% 31, 2%
2012-2013 July (1,000 Metric Tons)
China
European Union
United States
Japan
Korea, South
Israel
Argentina
Other
Source: USDA
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Main Citrus Canneries
Hunan Chic Foods Co.
Limited
Zhengjing Taizhou Yiguan Food
Co. Limited
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Orange Juice Extraction Industry
Capacity and yield increased greatly in recent years
Major plants in Chongqing, Sichuan, Hunan
The capacity is equivalent to 170 JBT extractors and is able to
process 2 million tons oranges per year.
An estimate of 600,000 tons oranges was used for juice
extraction in 2011
40,000 tons 65°Brix FCOJ
20,000 tons NFC
Extractor utilization is below what is expected
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FCOJ Production and Import in China
0
10
20
30
40
50
60
70
80
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Improted (1000 t)
Produced(1000t)
Source : Chinese Custom and Juice Industry
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Improted (1000 t) 34.7 48.5 39.1 57.3 60.6 61.8 43.3 48.9 66.2 73.3
Produced(1000t) 2.5 3 3.5 5.4 18 22 24 25 26 40
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Juice orange shortage
Short production window
Inconsistent fruit quality
Unstable fruit price
The Challenge of Orange Juice Extraction
Industry
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Juice Orange Shortage
Become the bottleneck of OJ development
The income of planting juice orange is less than planting table
orange
Balance the benefit between processors and growers
Increasing fruit yield and quality and reducing cost
Large scale cultivation
large-scale professional farmer and company to participate
Encourage farmers into cooperatives
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Main Orange Juice Extraction Plants
Cha Meei Food Intl. Co
Huiyaun Juice Group
Summi Food Co.
Tianyi Ltd
Chongqing Three Gorge
Construction Group
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Citrus Juice
Consumption in China
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China Juice Market
18/0
9
/201
3
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Source: Euromonitor
Off-Trade mn Liters
173.3 195.1 211.9 229.1 269.1 317.5 1,114.0 1,253.2 1,357.0 1,476.4 1,621.3 1,788.8
6,624.3 7,962.0
8,972.7 10,152.5
11,595.8 12,941.1
0.0
2,000.0
4,000.0
6,000.0
8,000.0
10,000.0
12,000.0
14,000.0
16,000.0
2006 2007 2008 2009 2010 2011 100% Juice Nectars (25-99% Juice) Juice Drinks (up to 24% Juice)
China JUN market size (2011, Off trade Volume) 15.5 billion litres, 17.8 billion USD.
Growth rate per year 13.7%
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Market Shares by Volume
86%
12%
2%
Juice Drink (upto 24% juice)
Nectars(25-99%juice)
100% juice
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Citrus Market Share in 100% Juice
Apple 30%
Grape 1%
Mixed fruits 17%
Orange 48%
Peach 1%
Tomato 1%
Other Flavours
2%
100% Juice
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Citrus Market Share in Nectar
Nectars (25-99% Juice)
Apple 12%
Grape 5%
Kiwi -1%
Mixed fruits 17%
Orange 55%
Peach 1%
Pineapple 1%
Other Flavours
9%
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Citrus Market Share in Juice Drinks
Apple 5%
Grape 4%
Grapefruit -1%
Guava 1%
Lemon and Lime 5%
Mixed fruits 16%
Orange 37%
Pear 25%
Pineapple 1%
Other Flavours 6%
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Chinese Fruit Juice Consumption
on SSE juice in 2011
Orange juice 42%
Apple juice 23%
Pear juice 17%
Other juice 18%
1.8 million tons SSE juice consumed
Source:Chinese Custom and Juice Industry
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China Juice Market
ORANGE IS THE CLASSIC AND TOP TONALITY IN JUICE CATEGORY
Ting Hsin Orang Juice Drink
President Orange Juice Drink
Coca Cola Minute Maid
Orange Juice Drink
Pepsico Tropicana
Orange Juice Drink
Suntory Orange Juice Drink
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China Juice Market
NEW CITRUS CREATES NEW INTEREST
Ting Hsing Honey Yuzu
President Crystal Sugar
Kumquat
Tao Di Mandarine Lemon Yangsengtang
C100 Grapefruit
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Key Trends Towards Citrus:
– Orange is a classic and leading flavour
– Lemon is getting popular
– Adding fruit pulp attracts the consumers
– New citrus flavours such as kumquat offer new innovation
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Outlook of Citrus
Industry in China
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Outlook of Citrus Industry in China
The acreage will remain stable while the production
will increase with the improvement of agricultural
practices
Will remain for the domestic fresh market
Export will still be low at the level of about 5%
Tangerine and mandarin will remain as the major
variety
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Outlook of Citrus Industry in China
Sweet orange, especially the navel orange and
summer orange will increase steadily
Both late season and extra early cultivars and
acreage will increase
More modern packing houses will be set up to
enlarge the post harvest capacity
Although the orange juice will still rely on imports,
the domestically produced orange juice will increase
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Acknowledgement
Prof. Wu Houjiu
Vice Director of National Research
Center for Citrus Engineering Technology
Beibei, 400712 Chongqing, P. R. China
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Thanks for your attention!