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Heilongjiang Would Become the Region Where Corn Further Processing Capacity Increases Quickest

China Agriculture Report By CnAgri2017-11-02 10:28:59China Agriculture Report Print Since 2017, the government has been obviously loosened the restrictions on new corn further processing capacity, simplified the approval procedures of new projects and canceled the limitations on foreign capital entry this field, especially the publishing of development goals of covering E10 fuel alcohol the whole country by 2020. China’s corn further processing field would have a new round of investment boom and Heilongjiang would become the region where capacity increases quickest. The main reasons are as the follows:
First, judging from materials security and materials costs, Heilongjiang has advantage. Owing to rich land resource, Heilongjiang has been the province whose planting areas and output both are biggest since 2010. And meanwhile, Heilongjiang always is a place where corn prices are low, which is good for cutting down the costs of further processing companies.   
Second, Heilongjiang is the region where corn stocks are biggest in the northeast and the distance to consumption areas is longest, so it has the biggest pressure of cutting down stocks. In order to accelerate the consumption of temporarily-stored corn, Heilongjiang has released the subsidy policy for further processing companies who consume temporarily-stored corn, and the subsides are highest in the northeast.   
Third, corn further processing sector in Heilongjiang has relatively good industrial base. Corn further processing companies in Heilongjiang have relatively centralized location and relatively complete supporting industries, and have formed certain industrial cluster effects. 
Fourth, in order to achieve the developmental goal of fuel alcohol sector, Heilongjiang had released Guiding Suggestions on Developing Corn Further Processing Sector (Trial Implementation) by the end of September. It shows important developing directions of further processed products, as well as support scale and regional planning, which provides policy support for new projects.  
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