Sweeteners China News_Sample Issue

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Copyright CCM International Limited

Sweeteners China News

Vol.1 Issue 1 2011


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Vol.1 Issue 01 2011 Publication date: 20 June, 2011

The average cane sugar price in China on 15 June 2011 was

USD1,114/t (RMB7,217/t), down 4% over the average price

on 10 November 2010when the price is the highest in

the past several years, according to the China Sugar Index

from www.yntw.coma famous sugar website in China.

However, the current price still stays at a high level, and it

is estimated that the sugar price will remain at a high level

this year, higher than USD1,080/t (RMB7,000/t).

Certainly, such market situation provides an opportunity

for sweetenersthe sugar substitutes and most of them

have lower unit sweetness price over sucrose. And theplayers in the industry are optimistic about the future

development of sweeteners, especially high intensity

sweeteners (HIS, which is one main focus in this issue):

according to a survey from CCM which is also referred in

the article below in this issue, most respondents believe

that HIS will perform well in China and Asia Pacic in the

next 3-5 years. Meanwhile, the recent dynamics of many

processors, such as Anhui Jinhe, Mengzhou Huaxing and

Gansu Puhua, also prove that they are optimistic about the

HIS segment, which is an apparent signal for the industry.

If there are any specic topics you would like us to coveror investigate any of the subjects covered in more details,

please contact us by +86-20-37616606, or econtact@

cnchemicals.com.

CCMs Market ReportsAnnouncement

For more details, please contact CCM at

[email protected]

CCMs Market Reports

Announcement

For more details, please contact CCM [email protected]

The Survey of Sorbitol in Asia Pacic

Production and Market of Xylitol in ChinaProduction and market of Stevia Sweetener

in China

Future of Functional Oligosaccharide Marketin ChinaProduction and Market of Inulin in ChinaProduction and Market of Sucralose in China

CONTENTSWelcome to the June issue of SweetenersChina News, specially published by CCMInternational.

News in Brief1 Public notice on export quota biddingissued

1 Meilun Medical obtains government subsidy

1 CFIA holds a meeting of starch sugar in Beijing

1 Haizhina to build an organic maltose syrup project in Jiangxi

1 Problems hinder domestic HFCS development

1 Prices of corn starch and syrup may increase again in H2 2011

Market Dynamic2 Overview of production and market of sucralose

Company Dynamic3 Anhui Jinhe passes IPO examination and approval

4 Gansu Puhua to launch stevioside production lines

5 Guilin Layn to turn loss into gain5 Mengzhou Huaxing launches trial production of aspartame production lines

6 Baolingbao smoothly expands erythritol capacity

Raw Material Supply7 GLG builds a breeding and cultivation centre of stevia

Price Update8 Ex-factory prices of Chinese sweeteners, June 2011

Import & Export Analysis9 Import & export analysis of Chinese saccharin in Jan.-Apr. 2011

10 Import & export analysis of Chinese cyclamate in Jan.-Apr. 2011

Consumption Trend & Competitiveness11 HIS believed to enjoy good development in the future
http://www.cnchemicals.com/Report/ReportMin.aspx?id=1326http://www.cnchemicals.com/Report/ReportMin.aspx?id=1432http://www.cnchemicals.com/Report/ReportMin.aspx?id=1432http://www.cnchemicals.com/Report/ReportMin.aspx?id=1432http://www.cnchemicals.com/Report/ReportMin.aspx?id=1859http://www.cnchemicals.com/Report/ReportMin.aspx?id=1859http://www.cnchemicals.com/Report/ReportMin.aspx?id=1860http://www.cnchemicals.com/Report/ReportMin.aspx?id=1860http://www.cnchemicals.com/Report/ReportMin.aspx?id=1432http://www.cnchemicals.com/Report/ReportMin.aspx?id=1326http://www.cnchemicals.com/Report/ReportMin.aspx?id=1328http://www.cnchemicals.com/Report/ReportMin.aspx?id=1860http://www.cnchemicals.com/Report/ReportMin.aspx?id=1859


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Sweeteners China NewsVol.1 Issue 01 2011

www.cnchemicals.com [email protected] 2

arket Dynamic

Overview of production and market of sucralose

Cu rren t l y , wi th the in crea s in goverseas sucralose demand, Chineseproducers have been actively operating

their sucralose production lines or

expanding their sucralose capacity since

domestic sucralose producers effectively

won the No.337-TA-604 investigation

launched by Tate & Lyle in the US on 6

April 2009. And the export volume of

sucralose has a rapid growth after 2009.

JK Sucralose Inc. (JK Sucralose),

the largest professional sucralose

manufacturer in China and the second

largest in the world, has finished the

second phase project in June 2010 and

has successfully achieved the expected

capacity in May 2011. Meanwhile, in

order to meet the increasing market

demand for sucralose, JK Sucralose has

started the third phase project which

includes three production lines. It is

estimated that the sucralose capacity will

get 800t/a by the end of 2011, then to

1,000t/a by the end of 2012 and nally

reach 4,000t/a by the end of 2018.

Changzhou Niutang Chemical Plant Co.,

Ltd. (Changzhou Nituang), one of the

major domestic sucralose producers,

has a subsidiary engaged in sucralose

production, namely Nantong Changhai

Food Additive Co., Ltd. (Nantong

Changhai). In 2010, the sucralose

capacity and output of Changzhou

Niutang are 100t/a and 60 tonnes,while those of Nantong Changhai are

100t/a and 50 tonnes, respectively.

Wha t ' s m ore, i t i s reported tha t

Changzhou Niutang planned to expand

its sucralose capacity by 1,000t/a. Then,

it is estimated that the total capacity of

Changzhou Niutang will reach 1,100t/a

when the expansion is nished.

Techno (Fujian) Biotechnology Co.,

Ltd. (Fujian Techno), also one of the

major domestic sucralose producers,is a subsidiary of Techno (Guangzhou)

Biotechnology Co., Ltd. (Guangzhou

Techno). In 2010, Fujian Techno's

sucralose capacity and output are

300t/a and 60 tonnes, respectively,

and it has planned to further expand its

sucralose capacity in the future, based

on the currently increasing demand for

sucralose.

The chart (FIGURE 1) shows that boththe output and capacity of sucralose

in China have increased from 2006

to 2010. And in 2010, the output of

sucralose is more than 600 tonnes,

increasing by about 50% over 2009

thanks to the recovered demand from

overseas market.

Currently, China has witnessed booming

sucralose export. From 2006 to 2010,

the export volume (FIGURE 2) showeda general trend of escalation, though

in 2009 it decreased a little than that

in 2008. Because of the 337 patent

FIGURE 1: Export volume of sucralose in China, 2006-2010

Source: CCM International

FIGURE 2: Sucralose production in China, 2006-2010


0

100

200

300

400

500

2006 2007 2008 2009 2010

Unit:tonne

0

400

800

1,200

1,600

2,000

2006 2007 2008 2009 2010

Unit:tonne

Capacity: t/a Output : tonne


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investigation which hit China's sucralose market from

2008 to 2009, producers in China exported less sucralose.

After Chinese producers won the investigation on 6 April

2009, domestic export has gradually recovered and a new

export record is set in 2010. Since sucralose is widely

used, the export is promoted with its increasing overseasdemand.

Generally, it is estimated that China's sucralose industry

will develop gradually in the future. When the processing

construction projects of sucralose is finished and the

capacity utilization is raised, the total capacity of sucralose

will increase a lot. Because the price of sugar in China

still stays at a high level even though the government has

already taken action to stabilize it, more and more food

producers will prefer to choose high intensity sweeteners

(HIS), which can significantly decrease the productioncost compared with that of using sugar. Therefore, this

situation is favorable to the consumption of HIS. With

the development of sugar-free foods and the extensive

application of HIS, the demand for sucralose both at home

and abroad will grow in the next few years.

ompany Dynamic

Anhui Jinhe passes IPO examination and approval

Anhui Jinhe Industrial Co., Ltd. (Anhui Jinhe), engagedin producing acesulfame-K, maltol and ethyl maltol,has successfully passed IPO (Initial Public Offerings)

examination and approval on May 20th 2011.

Anhui Jinhe plans to raise about USD111 million through

IPO to expand its acesulfame-K capacity from 4,000t/a

to 9,000t/a and to construct a new workshop of calcium

ammonium nitrate with the capacity of 200,000t/a. Anhui

Jinhe may formally issue its stocks at Shenzhen Stock

Exchange before the end of 2011 thanks to the following

advantages: steadily increasing assets, sufcient circulating

funds, strong debt paying ability and excellent protability

forecast on the core businesses, especially acesulfame-K.

Major reasons for Anhui Jinhe's expansion in acesulfame-K

capacity are as follows.

Demand for acesulfame-K has been increasing because

of the fast growth of China's food industry especially the

beverage industry in recent years.

As a safe sugar substitute, demand for acesulfame-K from

above 100 million of domestic diabetics has also been

increasing.

Anhui Jinhe has been investing in the improvement of

acesulfam-K's quality in recent years, which strengthens its

competitiveness in the acesulfame-K market. Meanwhile,

Anhui Jinhe had increased its acesulfame-K capacity from

1,800t/a in 2008 to 4,000t/a in 2009. In order to expand

the market share of acesulfame-K in sweetener market,

Anhui Jinhe expects to expand the acesulfam-K capacity as

soon as possible.

From 2006 to 2010, the capacity of acesulfame-K has

increased from 13,620t/a to 20,520t/a with a CAGR of

10.79%, while the output has decreased from 7,325 tonnes

to 4,185 tonnes with a CAGR of -13.06%. Before 2008,

seeing the price increasing year by year, some producers

poured in acesulfame-K production or excessively enlarged

their production capacity. At that time, intense competition

between producers and the impact from overseas rivals

have led to the oversupply in the acesulfame-K industry,

resulting in low operating rate and shrunken output.

What's worse, the global financial crisis since 2008 has

impacted the development of Chinese acesulfame-K

industry; demand both at home and overseas is not as

brisk as it was in previous years.

However, Anhui Jinhe will face some risks, such as

much stricter supervision on food additives, fluctuatingcyclamate price and RMB exchange rate.

TABLE 1: Basic information about major acesulfam-K producers in China, 2011

No. Company name Abbreviation Location Capacity '11

1 Suzhou Hope Technology Co., Ltd. Suzhou Hope Jiangsu 10,000

2 Anhui Jinhe Industrial Co., Ltd. Anhui Jinhe Anhui 4,000

3 Shandong Minghui Food Co., Ltd. Shandong Minghui Shandong 2,500

4 Zhejiang Hangzhou Sanhe Food Co., Ltd. Hangzhou Sanhe Zhejiang 2,000

5 Beijing VitaSweet Co., Ltd. Beijing VitaSweet Beijing 1,200

6 Jiangsu Suzhou Peacock Food Additive Co., Ltd. Suzhou Peacock Jiangsu 1,500

7 Jiangxi Beiyang Food Addiitive Co., Ltd. Jiangxi Beiyang Jiangxi 1,000

8 Shandong Zibo Golden Science Industry & Trade Co., Ltd. Zibo Golden Shandong 200

9 Guangdong L&P Food Ingredient Co., Ltd. Guangdong L&P Guangdong 120

Total 22,520



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Gansu Puhua Stevioside Development Co., Ltd. (Gansu

Puhua), engaged in stevioside production, may

launch its stevioside production lines in H2 2011.

Gansu Puhua with the total investment of about USD19

million was set up in July 2010 and its five investors

include: Gansu Pharmaceutical Alkali Factory (Gansu

Pharmaceutical Alkali), Gansu Agricultural Reclamation

Group Co., Ltd. (Gansu Agricultural Reclamation Group),

Chengdu Wagott Pharmaceutical Co., Ltd.(Chengdu

Wagott), Gansu Yasheng Industrial (Group) Co., Ltd.

(Gansu Yasheng) and Gansu Puli Health Products Co.,

Ltd. (Gansu Puli). Gansu Agricultural Reclamation

Group is the controlling shareholder of both GansuPharmaceutical Alkali and Gansu Yasheng, and these

three companies together hold 70% of Gansu Puhua's

total shares. Moreover, Chengdu Wagott, engaged in

production of plant extracts, holds 20% of Gansu Puhua's

total shares and it is also a stevioside producer with a

capacity of 200t/a.

Gansu Puhua started the construction of stevioside

production lines with total capacity of 1,000t/a at the

end of July 2010. Currently, The company has completed

the construction of stevioside production lines and may

launch them in H2 2011. Meanwhile, Gansu Puhua hasbuilt a stevia planting base with the total building area

of about 667 hectares, in order to provide steady and

sufcient raw materials to its own stevioside production

in the future.

Gansu Puhua will become one of the top six domesticstevioside producers (TABLE 2) each with the

capacity of above 1,000t/a in China after it launches

its production lines. There are mainly 25 active stevia

sweetener producers in China by now. PureCircle

(Jiangxi) Co., Ltd. is the biggest one, whose capacity

and output reached 4,000t/a and 1,400 tonnes in 2010,

accounting for 29.68% and 35.80% of the total domestic

capacity and output of stevia sweetener, respectively.

Moreover, China's stevia sweetener production is mainly

concentrated in Jiangxi Province and Shandong Province.

As a natural kind of high intensity sweetener (HIS),

stevia sweetener's usage has been approved by moreand more countries and it has been becoming more and

more popular in overseas market. Currently, China is

the largest stevia sweetener supplier in the world, and

around 80% of its total output of stevia sweetener is sold

to overseas market. From 2006 to 2010, the capacity

of stevia sweetener has increased from 5,160t/a to

13,475t/a with a CAGR of 27.12%. The booming domestic

production is mainly driven by the rising demand from

foreign countries; nowadays, foreigners prefer natural

food additives to articial ones. The US, Japan and South

Korea are the most important stevia sweetener markets

in the world. China's stevia sweetener is mainly exportedto neighboring countries and North America in the past

three years. Malaysia, the US, Mexico, South Korea and

Japan are the most important export destinations of

China's stevia sweetener.

Gansu Puhua to launch stevioside production lines

TABLE 2: Basic information about major stevioside producers in China, 2011

No. Company name Capacity '11 Location

1 PureCircle (Jiangxi ) Co., Ltd. 4,000 Jiangxi

2 Dongtai Runyang Stevia High Tech Co., Ltd. 2,000 Jiangsu

3 Shandong Huaxian Stevia Co., Ltd. 1,000 Shandong

4 Qingdao Runde Biotechnology Co., Ltd. 1,000 Shandong

5 Shandong Haigen Stevia Products Co., Ltd. 1,000 Shandong

6 Gansu Puhua Stevioside Development Co., Ltd. 1,000 Gansu

Total 10,000 /


CCMs Trade AnalysisAnnouncement:

For more details, please contact CCM [email protected]

Stevia Export Analysis

Neotame Export Report

Sucralose Export Analysis

Aspartame Export Analysis


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Guilin Layn to turn loss into gain

Guilin Layn Natural Ingredients Corp. (Guilin Layn),engaged in production of plant extracts, may turnloss into gain in H2 2011, thanks to its rapidly increasing

sales of momordica glycosides (a natural sweetener).

Although it is estimated that Guilin Layn's amount of loss

may reach about USD1-1.5 million in H1 2011 according

to its nancial report of the rst quarter of 2011, Guilin

Layn may successfully make a profit in light of the

following factors.

Natural sweeteners, such as momordica glycosides and

stevia sweetener, have become more and more popular

among consumers in some developed countries in recent

years, such as the US, Japan and South Korea.

Compared with artificial high intensity sweeteners,

natural sweeteners are safer to be used as food additives.With the enhancement of consumers' health awareness

in the world, more and more foods and health products

will use natural sweeteners as additives.

Guilin Layn successfully got the GRAS (Generally

Recognized as Safe) certication of momordica glycosides

from FDA (Food and Drug Administration of the US) in

April 2011, which is very helpful for Guilin Layn to enter

the sweetener market in North America. Guilin Layn's

total sales value of stevioside has reached about USD100

million in 2010 after FDA granted stevia sweetener

the GRAS certification in 2009, according to Mr. Liao,

General Manager of Guilin Layn. Meanwhile, Guilin Layn

has been preparing for the construction of a new branch

named Layn USA Inc. located in the US since Oct. 2010,

in order to efciently promote the momordica glycosides

in North America. It is predictable that Guilin Layn's

sales value of momordica glycosides may obviously soar

in H2 2011.

Moreover, Guilin Layn has completed the construction

and started the trial running of new production lines

in June 2010. Its processing capacity of raw materials

will increase from 3,000t/a to 7,000t/a after the new

production lines are formally launched in H2 2011.

Currently, Guilin Layn owns the extraction processesof about 200 kinds of plant extracts and 18 national

invention patents. Especially, Guilin Layn has got a

national invention patent of momordica glycosides

extraction as early as 2004, which has laid the root for

its currently leading position in Chinese momordica

glycosides market. Moreover, Guilin is the major

production area of grosvener siraitia and can provide

Guilin Layn with sufficient raw materials to produce

momordica glycosides.

Mengzhou Huaxing launches trial production of aspartameproduction lines

Mengzhou Huaxing Co., Ltd. (Mengzhou Huaxing),a joint-stock enterprise engaged in the processingof grain, is putting its aspartame production lines into

trial production.

Mengzhou Huaxing began to construct the aspartame

production lines with capacity of 6,000t/a and

investment of about USD54 million at the end of Feb.

2010 and it completed the construction at the end

of June 2011. Mengzhou Huaxing may become the

largest aspartame producer in China after it launches

the production lines in H2 2011. The company is

very optimistic about the prospect of aspartame and

it expects to gain annual revenue of about USD107

million from the aspartame production lines in the

future.

In China, the research on aspartame started in the

early 1980s, but the industrial production had always

been restricted by the shortage of raw material, i.e.

L-phenylalanine (L-Phe), which is not relieved until the

Twenty-First Century when the hydantoinase method

for the synthesis of L-Phe became mature in China.

There were mainly seven active aspartame producers

(TABLE 3) in China by the end of 2010. Jiangsu

SinoSweet Co., Ltd. (Jiangsu SinoSweet) was the biggest

one with the capacity of 5,000t/a, accounting for about

32% of domestic total capacity. Moreover, Chinese

aspartame production was mainly concentrated in

Jiangsu Province.

From 2006 to 2010, domestic capacity of aspartame

had increased from 10,250t/a to 14,545t/a. As the

most popular HIS variety in the world, the demand for

aspartame is increasing year by year, thus stimulating

domestic aspartame production. Since it's approved by

the FDA to be used in food and beverage in 1981 and

1983 respectively, aspartame has been approved in

over 100 nations and used widely in candies, beverages

and dairy products, etc. About 40% of aspartame is

consumed in sugar-free candies and gum candies,

35% in beverages in the world. The US is the biggest

aspartame production and consumption country in the

world.

Moreover, the production of aspartame in China seems

to be more concentrated in some big producers suchas Jiangsu SinoSweet Co., Ltd., Jiangsu Changzhou

Niutang Chemical Plant Co., Ltd., etc. Some small ones


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have been gradually washed out of the market in recent

years caused by the insufficient raw material supply and

global nancial crisis.

Based on the above facts, it can be predicted that the

competitiveness among domestic aspartame producers

may become more intense with Mengzhou Huaxing

launching its aspartame production lines in the future.

TABLE 3: Basic information about major aspartame producers in China, 2010, t/a

No. Company name Capacity'10 Location (Province/City)

1 Jiangsu SinoSweet Co., Ltd. 5,000 Jiangsu

2 Jiangsu Changzhou Niutang Chemical Plant Co., Ltd. 3,000 Jiangsu

3 Changzhou Yabang Kelong Co., Ltd. 2,500 Jiangsu

4 Changmao Biochemical Engineering Co., Ltd. 2,000 Jiangsu

5 Shaoxing Yamei Biochemistry Co., Ltd. 1,000 Zhejiang

6 Beijing VitaSweet Co., Ltd. 1,000 Beijing

7 Wujiang Dechang Food Additives Co., Ltd. 45 Jiangsu

Total 14,545 /


Baolingbao smoothly expands erythritol capacity

Baolingbao Biology Co., Ltd. (Baolingbao), a leadingChinese producer of starch-based products and foodingredients, has been expanding its erythritol capacity,

and the total capacity will reach 4,000t/a by the end

of August 2011, according to Mr. Fan, Manager of

Baolingbao.

Baolingbao decided to invest about USD13.28 million

to expand its erythritol capacity to 4,000t/a at anextraordinary shareholders meeting in Feb. 2010. Then

part of the erythritol expansion was nished in May 2010

and put into production in Aug. 2010. By the end of Dec.

2010, the construction of erythritol capacity expansion

has been finished completely. It is estimated that the

total erythritol capacity will reach 4,000t/a in Aug. 2011,

which is four times of that in 2009.

Baolingbao believes that the erythritol industry will

develop well in the future and the demand for erythritol

will also increase. Moreover, since the overseas

consumption is more than the domestic one now, withthe increasing overseas demand for erythritol, the

domestic erythritol industry will keep on developing.

There were mainly five active erythritol producers

(TABLE 4) in China by the end of 2010, with total

capacity and output of 18,500t/a and 4,780 tonnes in

2010, respectively. The average operating rate of them

is 25.84%, about 11% less than that of 2009. From 2006

to 2010, the capacity of erythritol had grown rapidly,

while the growth of output had fallen behind. Besides,

there were four producers, namely Zibo Zhongshi Green

Biotech Co., Ltd., Shandong Futaste Pharmaceutical

Co., Ltd., Shandong Binzhou Sanyuan BiotechnologyCo., Ltd., O'Laughlin Industries Co., Ltd., use glucose to

produce erythritol in order to improve the production

efficiency, while Baolingbao uses corn starch in its

erythritol production, which is with lower cost compared

with that of using glucose.

Moreover, in 2010, among the ve main active erythritol

producers (FIGURE 3), four are concentrated in

Shandong Province; only one is located in Tianjin City.

Because erythritol is a kind of sugar alcohol and the sugar

alcohol industry develops well in Shandong, most of the

erythritol producers choose to be located in Shandong.

All in all, it can be predicted that the erythritol industry

in China will keep on developing in the future based on

the facts above.

TABLE 4: Basic information about major erythritol producers in China, 2011

No. Company name Abbreviation Location Status, '11 Raw material

1 Zibo Zhongshi Green Biotech Co., Ltd. Zibo Green Biotech Shandong Active Glucose

2 Baolingbao Biology Co., Ltd. Baolingbao Shandong Active Corn starch

3 Shandong Futaste Pharmaceutical Co., Ltd. Shandong Futaste Shandong Active Glucose

4 Shandong Binzhou Sanyuan Biotechnology Co., Ltd. Shandong Sanyuan Shandong Active Glucose

5 O'Laughlin Industries Co., Ltd. Tianjin O'Laughlin Tianjin Active Glucose



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FIGURE 3: Distribution of erythritol production by output volume in China, 2010

Tianjin

1.67%

Shandong

98.33%


aw Material Supply

GLG builds a breeding and cultivation centre of stevia

GLG Life Tech Corporation (GLG) has built a breedingand cultivation centre of stevia jointly with AnhuiScience and Technology University in Anhui in June 2011.

And this centre is a unique provincial engineering research

centre which is focused on breeding, cultivation and the

breed improvement of stevia.

GLG is a world leader in the production of high-quality

stevia, a zero-calorie and natural sweetener. Its vertically

integrated operations include stevia seed breeding,

propagation, growth and harvest, extraction, refining

and formulation; its main business in China is breeding,

propagation of stevia and production of high quality stevia

sweetener. In light of the following two reasons, GLG

believes that the stevia planting will develop well and the

demand for stevia may keep increasing in the next several

years, thus it has nally built this breeding and cultivation

centre in Anhui.

First, the export volume (FIGURE 4) of stevia sweetener

has increased thanks to the growing overseas demand for

it in recent years. Currently, China has already become

the largest stevia sweetener supplier in the world, and

around 80% of its total output of stevia sweetener is sold

to overseas market. Therefore, it reveals that the output

of stevia is also increasing since stevia sweetener is made

from stevia, and that the stevia sweetener producers will

need more stevia as raw material.

Moreover, the consumption volume of stevia sweetener in

China has also gradually increased for the development

of sugar-free foods and beverages in recent years. Take

Zero Calorie as an example, which is a new brand of GLG,

it has been launched in Chinese market in May 2011 and

it is the rst product that uses stevia sweetener instead of

cane sugar. In addition, the stevia sweetener used in Zero

Calorie is also produced by GLG. So it is predictable that

the consumption volume of stevia sweetener will continue

to increase along with the development of sugar-free foods

and beverages.

GLG builds the breeding and cultivation centre of stevia

for the following two goals.

First, the centre will improve the breeding to get new

stevia species which have higher steviol glycosides content

in the leaves. And the major components in steviol

glycosides are stevioside and rebaudioside A (RA). Those

new species can help stevia sweetener processors produce

high RA purity products. Moreover, the prices of high RA

purity products such as RA 80%, RA 90% and RA 95% are

much higher than that of stevioside, that is to say, the new

species can bring GLG higher prots.

Second, the output of stevia will increase with the

improving stevia planting level through education and

training. What's more, the centre will help farmers learn

new culture technique of stevia and prevent plant diseases

and insect damage.

It is estimated that the planting industry of stevia will

develop sustainably, then the output of stevia will also

increase to ensure the supply. In fact, stevia is planted

by native farmers and then sold as a raw material to the

domestic stevia sweetener producers. On one hand, the

increasing demand from stevia sweetener drives the

producers to buy more stevia from farmers. On the other

hand, local governments also try their best to promote


10/16



the planting industry of stevia, because it can

increase the income of farmers. For example,

Government of Anhui Mingguang held a

purchasing meeting of stevia on 4 May 2010

which aims to help farmers sell their stevia

at a reasonable price and also to help steviasweetener producers buy high quality stevia

in the harvest season. That is to say, both the

sweetener producers and the government are

promoting the planting industry of stevia.

FIGURE 4: Export volume of stevia sweetener in China, 2008-

2010

0

1,000

2,000

3,000

4,000

2008 2009 2010

Unit

:tonne


rice Update

Ex-factory prices of Chinese sweeteners, June 2011

No. Products Price in June 2011

Sweetness

compared with

sucrose

Price of unit

sweetness

(USD/t) (RMB/t) (USD/t)

1 Sucrose 1,115 7,225 1 1,115

2 Steviol glycosides (RA95) 162,120 1,050,000 450 360

3 Sucralose 102,676 665,000 600 171

4 Acesulfame-K 8,183 53,000 200 41

5 Aspartame 15,600 101,038 200 78

6 Glycyrrhizin (Tripotassium Glycyrrhinate) 13,896 90,000 150 93

7 Saccharin 5,200 33,679 300 17

8 Cyclamate (NF13) 2,470 16,000 30 82

9 Neotame 100,230 650,000 8,000 13

10 Erythritol 5,188 33,600 0.70 7,411

11 Mannitol 3,011 19,500 0.60 5,018

12 Maltose syrup (80%) 478 3,100 0.90 531

13 Sorbitol (70%) 644 4,178 0.70 920

14 Xylitol (68%, Liquid) 918 5,953 0.90 1,019

15 HFCS (Fructose: 42%) 509 3,300 1 509

16 HFCS (Fructose: 55%) 647 4,200 1.10 588

17 Crystal Isomaltitol 4,639 30,100 0.55 8,435

18 Maltodextrin 647 4,200 0.90 719

19 Maltitol (75%, Liquid ) 727 4,718 0.90 808

20 Anhydrous glucose (Food grade) 848 5,500 0.74 1,146

21 Glucose Monohydrate 632 4,100 0.74 854

Note: The data of price are collected on 13 June 2011, which are valid till 27 June 2011.



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mport & Export Analysis

Import & export analysis of Chinese saccharin in Jan.-Apr. 2011

Export analysis

Export volume

China's total saccharin export volume reached about4,844 tonnes in the first four months of 2011.Compared with the same period of last year, the growth

rate of domestic saccharin export volume reached about

19%. With domestic saccharin quality improving and the

global economy recovering, it can be predicted that China's

saccharin export may keep growing in the next severalmonths in 2011.

Export price (TABLE 5)

China is an important saccharin producer and its average

export price of saccharin reached about USD5,833 during

Jan.-April 2011, which only increased by 4% year on year.

It may keep increasing in a narrow range in H2 2011 due to

the more and more serious ination in China.

TABLE 5: Export volume, value and price of China's

saccharin,Jan.-Apr. 2011Month Quantity, tonne Value, USD Price, USD/t

Jan-11 1,242 7,253,751 5,840

Feb-11 857 5,118,027 5,972

Mar-11 1,503 8,751,436 5,823

Apr-11 1,242 7,129,551 5,740

Total 4,844 28,252,765 5,833


Major export provinces (TABLE 6)

About 90% of the exported saccharin was exported from

Tianjin City, Henan Province and Shanghai City duringJan.-April 2011.

TABLE 6: Export volume of major saccharin export

provinces/cities in China, Jan.-Apr. 2011

No. Province/City Quantity, tonne Value, USD

1 Tianjin 1,918 10,615,254

2 Henan 1,519 8,443,119

3 Shanghai 920 6,468,802

4 Jiangsu 191 1,018,764

5 Shandong 98 630,079

6 Guangxi 71 366,363

Others 127 710,384

Total 4,844 28,252,765


Major export destinations (TABLE 7)

About 38% of China's saccharin for export was exported

to Germany, South Korea, Brazil, the US and India during

Jan.-April 2011. Among these five countries, Germany

imported about 14% of the total China's exported saccharin

during the same period.

TABLE 7: Major export destinations of China's saccharin,

Jan.-Apr. 2011

No. Destination Quantity, tonne Value, USD

1 Germany 672 4,082,297

2 South Korea 385 2,212,497

3 Brazil 314 1,740,088

4 US 250 2,358,388

5 India 226 1,210,968

6 France 200 993,913

7 Indonesia 195 1,031,562

8 Netherlands 185 1,013,328

9 Japan 184 1,084,449

10 Thailand 174 1,009,322

11 UK 172 1,058,90512 Spain 136 777,720

13 Mexico 131 779,420

14 Pakistan 122 627,460

15 South Africa 121 690,860

Others 1,377 7,581,588

Total 4,844 28,252,765


Import analysis

Import volume

China's total saccharin import volume was only about 83

tonnes in the rst four months of 2011.

Import price (TABLE 8)

Compared with last year, China's average saccharin import

price sharply declined from about USD11,752/t to about

USD8,280/t in Jan.-April 2011, because of the recovery of

domestic saccharin producers


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TABLE 8: Import volume, value and price of China's

saccharin, Jan.-Apr. 2011

Month Quantity, tonne Value, USD Price, USD/t

Jan-11 34 276,911 8,144

Feb-11 2 19,215 9,608

Mar-11 43 312,572 7,269

Apr-11 4 78,580 19,645

Total 83 687,278 8,280Source: CCM International

Major import destinations (TABLE 9)

About 90% of China's imported saccharin was imported by

Jiangsu Province during Jan.-April 2011.

TABLE 9: Import volume of saccharin by main provinces

in China, Jan.-Apr. 2011

No. Country Quantity, tonne Value, USD

1 South Korea 75 587,932

2 Germany 4 37,0683 Singapore 2 6,845

Others 2 55,433

Total 83 687,278


Major import origins (TABLE 10)

About 89% of China's imported saccharin was from South

Korea during Jan.-April 2011.

TABLE 10: Major origins of China's imported saccharin,

Jan.-Apr. 2011

No. Province Quantity, tonne Value, USD1 Jiangsu 73 531,103

2 Guangdong 4 20,378

3 Shandong 4 69,028

Others 2 66,769

Total 83 687,278


Import & export analysis of Chinese cyclamate in Jan.-Apr. 2011

Export analysis

Export volume

China's total cyclamate export volume reached about8,853 tonnes in the first four months of 2011.Although the export volume of cyclamate reduced by about

321 tonnes over the same period of last year, it may slowly

increase in H2 2011 thanks to the increasing demand for

cyclamate in the global market.

Export price (TABLE 11)

The average export price of China's cyclamate has been

fluctuating in a narrow range since 2010, and it reached

about USD1,860/t during Jan.-April 2011.

TABLE 11: Export volume, value and price of China's

cyclamate, Jan.-April 2011

Month Quantity, tonne Value, USD Price, USD/t

Jan-11 2,747 4,952,046 1,803

Feb-11 1,611 2,964,567 1,840

Mar-11 2,454 4,542,836 1,851

Apr-11 2,041 4,002,779 1,961

Total 8,853 16,462,228 1,860


Major export provinces (TABLE 12)

About 90% of China's cyclamate for export was exported

by Jiangsu Province, Shanxi Province and Guangdong

Province during Jan.-April 2011, among which the

cyclamate export volume of Jiangsu Province accounted

for about 50% of the nation's total.

TABLE 12: Export volume of major cyclamate export

provinces in China, Jan.-April 2011

No. Province/City Quantity, tonne Value, USD

1 Jiangsu 4,416 8,019,698

2 Shanxi 2,169 3,798,320

3 Guangdong 1,404 3,019,061

4 Shandong 497 927,098

5 Tianjin 239 440,048

Others 128 258,003

Total 8,853 16,462,228


Major export destinations (TABLE 13)

South Africa imported about 1,186 tonnes of cyclamate

from China during Jan.-April 2011, which accounted for

about 13% of China's total cyclamate export volume.


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TABLE 13: Major export destinations of China's cyclamate, Jan.-April 2011

No. Destination Quantity, tonne Value, USD

1 South Africa 1,186 2,188,790

2 Brazil 905 1,701,830

3 Argentina 765 1,390,667

4 Pakistan 752 1,288,490

5 Germany 676 1,347,1166 Turkey 602 1,060,517

7 Myanmar 572 993,505

8 Russia 342 608,300

9 Netherlands 341 707,508

10 Vietnam 260 465,884

11 Indonesia 244 421,298

12 Taiwan Province 217 371,389

13 Malaysia 215 401,297

14 Bangladesh 187 332,179

15 Bolivia 183 379,520

Others 1,406 2,803,938

Total 8,853 16,462,228


Import analysis

China's total cyclamate import volume was less than one tonne during Jan.-April 2011, thanks to the sufcient cyclamate

supply in the domestic market.

HIS believed to enjoy good development in the future

High intensity sweetener (HIS) industry has enjoyeda good development in the past years, and a surveyby CCM highlights that the trend will continue in the next

3-5 years in China and Asia Pacific Area (AP) as most

respondents believed.

HIS is an important class of sugar substitutes, and there

are nine kinds of commonly-used HIS in AP (an important

HIS production area in the world, whose total output

accounts for over 50% of the global total as estimated),

including saccharin, cyclamate, acesulfame-K (Ace-K),

stevia sweetener, aspartame, sucralose, glycyrrhizin,

alitame and neotame.

CCM conducted a survey in its report Survey of High

Intensity Sweeteners in Asia Pacic launched in February

2011, which is based on opinions of respondents from HIS

industry around the country, including HIS processors

(taking up 70.83% of the total number of respondents),

distributors (12.50%), downstream consumers (4.20%)and other insiders (12.47%, such as experts and media,

etc.).

According to the survey, most respondents were optimistic

about the development of high intensity sweeteners

(HIS) in Chinathe largest production and consumption

country in Asia Pacific Area (AP), taking up 71.51% of

the production in 2010 and 62.56% of the consumption

in 2009 in terms of volume respectively: amongst all the

respondents, 70.83% of them believed that the demand

for HIS will grow in the next 3-5 years, while only 29.17%

believed that the demand will remain stable, and no

respondent preferred the choice of "the demand will

decrease".

With regard to the growth rate (FIGURE 5), 29.41%

of respondents deemed that the rate will exceed 10%,

followed by 47.06% for growth rate of 5-10%, 23.53%

for 3-5%. The wider application field of HIS, domestic

consumers' more attention to health food with low calorie

and cost reduction for downstream clients are the three

main drivers (FIGURE 6) for the increasing HIS demand

in the future, taking up 27.08%, 27.08% and 16.67% of the

total respectively, followed by 12.5% for the choice "aidedby rapid development of China's economy", 8.33% for

production cost decrease and 8.33% for consumers' better

awareness about HIS.

onsumption Trend & Competitiveness


14/16



FIGURE 5: Industrys opinions about the growth rate of

HIS development in China in the next 3-5 years

Growth rate of 10%+,

29.41%

Growth rate of 5 - 10%,

47.06%

Growth rate of 3 -5%,

23.53%

Note: HIS means high intensify sweeteners, and the survey was

conducted in 2011.


FIGURE 6:Industrys opinion about the drivers of HISdevelopment in China in the next 3-5 years

Production

expansion and

cost re duction,

8.33%

Consumers'

better

awareness

about HIS, 8.33%

Wider

application field

of HIS, 27.08%Aided by China's

rapid economy

development,

12.50%

Cost re duction

for downstream

clients, 16.67%

Domestic

consumers'

more attention

to health food

with low calorie,

27.08%

Note: HIS means high intensify sweeteners, and the surveywas conducted in 2011.


Export of high intensity sweeteners (HIS) is one main

business of the respondents (mostly producers): 87.5% of

them revealed that they exported HIS to foreign countries.

And they are optimistic about the future development ofHIS in Asia Pacic Area (AP): 79.19% of the respondents

believed that the demand for HIS will grow in the next 3-5

years, while 20.83% for stable development and 0% for

decreased demand.

For the export growth rate (FIGURE 7), 21.05% of

respondents believed that the rate will exceed 10%,

while 26.32% for 5-10%, 31.58% for 3-5% and 21.05%

for 1-3%. Indonesia, India and Japan, as the three main

consumption countries in AP besides China, are deemed

to consume more HIS in the future, taking up 12.75%,

14.71% and 10.78% of the total number of respondents,

while 14.71% of respondents took the view that Malaysia's

demand for HIS will increase.

The main drivers (FIGURE 8) for the increasing demand

for HIS in AP were cited as the higher cost performance

compared with cane sugar (29.09%), the diet habit of low-

calorie food (29.09%) and the promotion by ASEAN Free

Trade Area (AFTA, 14.55%) , followed by the rapid recoveryof economy in AP (12.73%) and the foreign consumers' diet

habit of sweet food (12.73%).

FIGURE 7: Industrys opinions about the growth rate of

HIS development in Asia Pacic in the next 3-5 years

Growth rate of

5 - 10%, 26.32%

Growth rate of

3 - 5%, 31.58%

Growth rate of

1 - 3%, 21.05%

Growth rate of

10%+, 21.05%

Note: HIS means high intensify sweeteners, and the survey was

conducted in 2011.


FIGURE 8: Industrys opinions about the drivers of HIS

development in Asia Pacic in the next 3-5 years

Higher cost

performance

compared with

cane sugar,

29.09%

Foreign

consumers ' diet

habit for swe et

food, 12.73%

Others , 1.82%

Aided by rapid

recovery of

econom y in AP,

12.73%

Diet habit of low-

calorie food,

29.09%

Promotion by

ASEAN Free

Trade Area,

14.55%

Note: HIS means high intensify sweetener, and the survey was

conducted in 2011.



15/16


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