Constant Growth of Fruit/vegetable Juices/drinks Production in First Half of 2013

By CnAgri2013-11-19 11:34:06 Print

The manufacturing industry of fruit/vegetable juices/drinks maintained a steady growing momentum on the whole in the first half of 2013. Scaled companies saw continual growth of production and sales revenue and production converged towards the competitive regions.

During the first half of the year, the production surpassed 11 million tons; citrus growing regions including Sichuan, Chongqing and Fujian saw substantial expansion of production capacity, the total fruit/vegetable juice/drink production of these regions was larger than 2 million tons and accounted for 18% of the national total during the period; CAJ has seen scaled producers concentrated to Shandong and Shaanxi; the export price for CAJ was sluggish in the first half of the year, the export quantity fell because of the decline of international forecast, buyers were not mobilized.

Existing issues: (1) some leading players ran in deficit, the sales revenue and profit margin of COFCO (Tunhe), Xin Zhongji and Haisheng Fruit Juice fell at different levels. (2) The competitiveness of CAJ at international market dwindled, the production cost of producers kept on rising, both raw material price and labor cost rose sharply and the price for white sugar sustained at a high level. The constant appreciation of RMB yuan further raised the sales cost of products for export. While the international price was on a downward slope, the rising cost led to the slip of export competitiveness of China’s fruit/vegetable juice/drink industry.

From “China Soft Drink Market Monthly Report”