500 Billion Yuan Foodstuff Market in Western China by 2005China National Foodstuff Industry Association (CNFIA) predicts that by the end of 2005, foodstuff expenditure volume in the western area of China will top 477.2 billion yuan (US$57.5 billion), in which expenditures on processed foodstuff will be 252.9 billion yuan (US$30.47 billion).These figures indicate a huge potential market for foodstuff industry manufacturers in the area. Foodstuffs include food like meat, sugar, milk, tobacco and other natural food products, which are mainly produced in western area. According to a development plan on western China's foodstuff industry, the annual growth rate of the foodstuff industry output value in western China will be 10 percent. By 2005, the industry's output value will reach 306 billion yuan (US$36.87 billion), and by 2010, 500 billion yuan (US$60.24). At present, western China's total foodstuff industry output value is 175.7 billion yuan (US$21.17), accounting for 21 percent of the country's total. Ma Yong, a CNFIA official, attributed the slow development of the foodstuff industry in western China mainly to poor industrial production ability, lack of investment, and backward technology, professional training and management. In the 21st century the need for major foodstuff will continue to increase, Ma said. Meanwhile, with the country's anticipated entry into the World Trade Organization (WTO), the food industry and market in western China will become more globalized, offering opportunities for further development. The official expects that profits and taxes will increase to 70 and 100 billion yuan by 2005 and 2010 respectively. The CNFIA, China's top authority on foodstuff industry, was set up in 1981. |
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