Many well-known enterprises from the pillar industry and the competitive industry in Yichang—the food and pharmaceutical industries have experienced growth with leaps and bounds in recent years, and products from some enterprises including Daohuaxiang Group, Zhijinag Liquor Co., Ltd, Yichang Humanwell Pharmaceutical Co., Ltd, have become famous brands in China.
The gross output value of the food and beverage industry reached 70.669 billion RMB, an increase of 27.27 percent over the previous year, which accounts for 19.02 percent of the gross output value of large industrial enterprises in Yichang. The industrial added value of pharmaceutical industry reached 3.216 billion RMB, an increase of 16.4 percent over the previous year.
The food and pharmaceutical industries, which are frequently referred to as sunrise industries and livelihood industries, bring about “biological economy” which has become a major driving force in Yichang’s economic development. These industries can help Yichang achieve the goal of economic growth and harmony in regional economy and society development, with industrial cluster and the mode of sustainability and low consumption (of raw materials, fuel, etc.).
The brewery industry is like an aircraft carrier at the start of her maiden voyage.
On May 20, the three-day Eighth Central China Investment and Trade Expo (Expo Central China 2013) wrapped up in Zhengzhou, during which hit products from Daohuaxiang Group and its subsidiaries like Hubei Daohuaxiang Liquor Co., Ltd, Hubei Guangongfang Liquor Co., Ltd, Hubei Sanmai Liquor Co., Ltd and Green Food Company drew a great many customers’ attention.
According to Cai Hongzhu, the President of Daohuaxiang Group, the group is on the way to annual sales revenue of totally 50 billion RMB in the period of the “12th Five-Year Plan”. To realize this goal, the group will adhere to the strategy of liquor industry as core business, with the support of supporting industry, extending business to logistic industry, energy industry as well as modern service industry.
After years of development in brewery industry, it is ready now for rapid expansion. As the Industry Plan with Output Value of 100 Billion indicates, the group will stick to brand strategy in the process of upgrading the liquor industry by means of increasing the proportion of high value-added beer products and speeding up the development of fruit wine and Chinese rice wine with local features.
With progress made in mergers and reorganization in industries, a growing number of enterprises are now in the fast track of expansion. It has been estimated that by 2016, there will emerge one leading enterprise with annual output value of 50 billion RMB, one with annual output value of 10 billion RMB, at least two key enterprises with annual output value of 5 billion RMB, no less than 4 key enterprises with annual output value of 2 billion RMB, and over two county-level food and beverage industries with annual output value of more than 10 billion RMB, not to mention twenty products as “Famous Trademark of China”.
The trend of food processing is towards deep-processing.
“The fact is that in our country access to polished rice becomes easy is just like what happened yesterday; a variety of rice products through deep-processing, such as parboiled rice, fortification rice, rice with remained germ and germinated brown rice are already available to consumers in developed countries,” observes Shi Changjin, the General Manager of Zhijiang Shiyang Industrial and Trading Company, “We really lag behind.”
Many reasons attribute to the current situation of relatively small size and lack of competitiveness of the food processing industry in Yichang, some of which include resource endowment not full taken advantage of, products with low added value, inadequate ability in innovation, and weak export-oriented economy.
Yichang is a land rich in natural resources, which lays the solid raw material foundation for various processing industries with a total of 10 billion RMB, like fruit and vegetable processing, tea processing, cooking oil processing, livestock and poultry products processing, aquatic product processing, as well as the konjac processing industry with local characteristics. In major fruit and vegetable producing areas, such as Yiling District, Yidu County-level City, Zhijiang County-level City, Dangyang County-level City, Changyang Tujia Autonomous County, etc. will achieve a breakthrough in processing industries like fruit and vegetable juicing, vegetable dehydration, fruit and vegetable quick-freezing, fruit and vegetable canning, as well as store and preservation. While in major tea producing areas, like Wufeng County and Yiling District, a batch of bases for tea processing will be built to promote the application of new technology, advanced material and new craftsmanship, only by doing so can continually improve the level of tea processing and make local tea go global through integration of resource.
The development of food processing industry is in need of full cooperation with other industries concerned. As the official from the Economic and Information Commission of Yichang Municipal Government introduced, “We will help the small and medium-sized (micro) enterprises to find the right development path with refinement, specialty and expertise characteristics, to solve their difficulties in the process of development, and to provide them with help in funds and programs.”
The bio-pharmaceutical industry can show its late-mover advantage.
No industry is more profitable than the bio-pharmaceutical industry. “It is wise for the Municipal Government to establish the Biological Industrial Park in Yichang and to promptly issue specific supportive policies,” says Li Jie, the President of Yichang Humanwell Pharmaceutical Co., Ltd. He thinks the decision made by Yichang Government to bring the bio-pharmaceutical industry into the one with Output Value of 100 Billion will give rise to the agglomeration effect on this industry and give it a jump on its rivals in getting new products to market fast, which may later take the lead among circles in China by wielding its late-mover advantage.
Besides Yichang Humanwell Pharmaceutical Co. Ltd, thirty-seven projects also settle down at the Biological Industrial Park with an investment of 18.6 billion RMB, among which 25 have been under construction and 5 projects like Angel Yeast Co., Ltd has been completed and gone into operation.
According to Yang Meiren, the Director of Administrative Committee of Yichang National High-tech Development Zone, all enterprises in the zone are entitled to benefit from the preferential policies adopted by the government of the National High-tech Development Zone, and can equally from the special supporting policies by Hubei Provincial Government and Yichang Municipal Government on supporting development of biological industry. Meanwhile, we strive to attract high-level talents by carrying out an incentive policy and measures, and encourage them to start their own business. At present, the undertaking of building the zone into a “Medicine Valley in Central China with total output value of 100 billion RMB” is in full swing. It has been estimated that by the end of 2015, the total industrial output value will reach 50 billion RMB; whereas by 2020, the number will be 100 billion RMB.
The food and beverage industry and bio-pharmaceutical industry have considerable potential for growth.
In the context of solid foundation for the Industry with Output Value of 100 Billion RMB built by the bio-pharmaceutical industry and the food and beverage industry, we propose starting from the following four aspects to achieve this goal:
First, we shall set up a new model in cooperation among production, learning, research and practice, and optimize the technology innovation system to provide technical support for industry development. Additionally, we shall follow the market mechanism to promote the upgrade of core enterprises and the commercialization of researching findings at institutions of high learning, under the guidance of government. To achieve this, we shall pay attention to two factors. For the first place, for the bio-manufacturing industry and bio- pharmaceutical industry, we should form a biological industry technology alliance that the institutions of high learning will be the mainstay between the Collaborative Innovation Center of Key Technology of Industry Chain of Specific Creatures of CTGU and enterprises like Angel Yeast Co., Ltd, Yichang Humanwell Pharmaceutical Co., Ltd and HEC Pharm Group. While for the food and beverage industry, we shall carry out the deep processing of indigenous products in Yichang, such as konjak and sturgeon, by turning to institutions of high learning, like CTGU and HZAU. For the second place, we should lay stress on the establishment of institute of biological medicine technology based on the practical necessity of core enterprises, in which we can create medicines ranging from genetic drugs to new drugs, especially dealing with the development of certain major drugs, including the macrolide antibiotics drugs, antiviral drugs against hepatitis B and influenza and drugs for malignant tumor treatment.
Second, we shall strenuously develop the modern Chinese herbal drug industry in Yichang by making full use of special resources. We can set up a raw material base for high quality Chinese herb, with the help of the Collaborative Innovation Center of Key Technology of Chinese Herb of CTGU. Besides, we can develop the “Industry Chain of Ten Herbs”, namely, papaya, angelica pubescens, centipede, mangnolia officinalis and so forth, mainly supported by the local traditional Chinese medicinal materials out of the raw material base.
Third, we shall promote the commercialization of scientific and technological achievements by means of strengthening policy support. We shall vigorously incubate “promising” enterprises producing biotech drugs with high added-value, and rely on the platform of Yichang National High-tech Development Zone to quicken the pace of transforming the scientific findings into commodities in genetic engineering products, gene-based treatment products and reagent for biological diagnosis.
Fourth, we shall intensify our efforts to attract foreign businesses and investment and take the “rising” enterprises into the undertaking of building Yichang into a modern mega city.
(Reporter Jin Guiman Correspondent Chen Xiaojun)