Processing of Agricultural Products and Food
Corn Embryo Meal Deep-processing Construction Project of Baicheng City
1. Introduction to the Project
1.1 Project background
1.1.1 Product introduction
Corn germ meal is a by-product obtained by extracting oil from corn germ through pressing or soaking. Corn germ meal has a high protein content and is rich in nutrients. It is commonly used in animal feed such as poultry, cattle, and pigs to increase the protein content and nutritional value of the feed.
This project utilizes the abundant corn resources in Zhenlai County and surrounding areas to produce corn meal with the high fiber content, which is used as feed for livestock and poultry.
1.1.2 Market prospect
With the rapid development of animal husbandry in China, the conflict between humans and livestock over food has become increasingly prominent, resulting in a shortage of feed resources. As one of the most important bulk raw materials, corn is rich in nutrients. However, in recent years, climate warming, geopolitical conflicts, the spread of the COVID-19 and other factors have led to the reduction of corn production in China, which relies heavily on imports. Therefore, unconventional feed materials such as corn by-products should be efficiently used in animal husbandry. Corn by-products such as sprayed corn husk, corn germ meal, corn distiller’s grains and their soluble substances (DDGS) have the high nutritional value. Reasonable application of them in livestock and poultry feed can not only reduce waste of corn raw materials and enrich raw material resources, but also reduce feed costs and improve breeding efficiency.
1. Supply of corn germ meal
In the third quarter of 2024, there was be a traditional maintenance period for deep processing enterprises, and the supply of corn germ may be temporarily tight, which may limit the operation of oil plants in the short term; in the fourth quarter, with the increase of corn production in the new season, the loose supply of raw materials in the market may lead to a downward trend in corn germ prices, and most enterprises maintained normal production status; at the same time, it is expected that three companies will add new production capacity to the market in the second half of the year. In addition, some other oil production companies will improve their oil production lines and resume corn wool oil pressing production. The supply of corn germ meal in the market will increase. Some deep-processing enterprises will expand their industrial chain and also build corn oil meal production lines, but the tight supply of raw material germ will limit the operation of oil plants. Coupled with the continuous weakening of oil demand, the profits of oil plants are difficult to achieve, and the enthusiasm for operation is limited in many ways. The supply of corn germ meal will not significantly increase.
2. Demand for corn germ meal
The downstream consumption of corn germ meal is mainly for feed breeding. From the perspective of various breeding ends:
(1) In terms of pigs
At the end of May, 2024, the inventory of sows capable of breeding in China was 39.96 million, an increase of 0.25% month on month and a decrease of 6.2% year-on-year, a decrease of 3.94 million from the peak at the end of December 2022; as the effect of reducing production capacity of live pigs gradually becomes apparent, pig prices continue to rise from mid to late May, and pig farming has turned from losses to profits. With the extension of profit time, the enthusiasm of the breeding side to increase breeding and supplement inventory is high. It is expected that the third and fourth quarters may be favorable for the procurement demand of feed raw materials.
(2) In terms of rumination
In autumn, the grass is abundant and the seeds gradually mature, resulting in a corresponding decrease in the demand for feed; in the deep winter season, there is a shortage of forage grass, which requires appropriate supplementation. However, due to the increasing trend of beef imports in China, it has impacted the beef cattle breeding industry, resulting in a continuous decline in breeding profits and a possible reduction in demand for ruminant feed.
(3) In terms of broiler chickens
In 2024, the inventory of ancestral breeding chickens and parental breeding chickens was at a relatively high level, but the breeding end was in a loss making state, and the control of raw material costs was cautious. The enthusiasm of farmers to replenish inventory is low, but the overall demand base can support their consumption of feed products to a certain extent.
(4) In terms of meat ducks
The production area of meat ducks is mainly concentrated in East China, while the breeding of egg ducks is mainly concentrated in Central and East China. The production of spray pulp is also concentrated in Shandong, and the production and sales areas are relatively concentrated; With the arrival of summer solstice, the difficulty of refrigeration and stocking has increased, while the difficulty and risk of breeding have also increased. The enthusiasm of farmers to replenish their pens has decreased, and the hatching farm is arranging seedlings according to plan, which has a multidimensional demand for feed. With the opening of schools and the consumption after the New Year and Chinese Spring Festival, it may be beneficial to support the recovery of demand.
(5) In terms of aquatic products
Affected by extreme weather and sluggish market conditions, the profit margin of the breeding industry has been compressed; according to seasonal patterns, fish and shrimp grew vigorously in the third quarter, with increased supply capacity, reaching peak levels in August and September, and then demand gradually declined.
3. Market forecasting for corn germ meal feed
As the world’s largest producer of corn, China plays an important role in the development of the corn germ meal industry both domestically and internationally. With the rapid development of the domestic feed industry and the promotion of environmental policies, the demand for corn germ meal continues to rise. According to the latest research report, it is expected that the global demand for corn germ meal will have reached 60 million tons by 2025.
1.1.3 Technical analysis
1. As a feed ingredient
Corn germ meal contains high protein and amino acids, and has good palatability. It can be used as a substitute for some feed materials such as soybean meal and corn. Adding an appropriate amount of corn germ meal to the feed of laying hens can improve egg production rate and feed utilization efficiency.
2. As a raw material for fermented feed
By utilizing the by-products of corn processing through microbial fermentation, research on fermented feed can not only improve the economic value of by-products, but also prevent environmental pollution and develop new feed resources. The by-products of corn processing after fermentation contain more organic acids, soluble peptides and other small molecular substances, which can improve the digestion and absorption rate of animals towards feed, enhance their disease resistance, and promote animal growth and development.
1.1.4 Advantageous conditions of project construction
(1) Policy advantages
The Implementation Plan for the Concentrated Campaign of the “Three-Double and One Tourism” Industrial Development Strategy in Zhenlai County (2021-2025) proposes that western townships (towns) should rely on the advantages of the “Golden Corn Belt” to vigorously develop corn planting. Strive to achieve a corn planting area of 1.1 million mu and a corn yield of 1.5 billion jin. Accelerate the construction of a “grain economy feed” ternary planting structure. Reduce grain corn in non advantageous areas in an orderly way, encourage the development of feed corn and edible corn, and do a good job in deep processing of corn and comprehensive utilization of corn straw.
The Three-Year Action Plan for Reducing and Replacing Feed Soybean Meal proposed by the Ministry of Agriculture and Rural Affairs aims to achieve low protein, low soybean meal, diversification, and high conversion rate, focusing on “improving quality and efficiency, and increasing feed sources”, coordinating the use of protein feed resources such as plants, animals, and microorganisms, promoting comprehensive measures such as improving efficiency, increasing source, and adjusting structure, strengthening the integrated innovation and promotion of new feed products, technologies, and processes, guiding the feed breeding industry to reduce soybean meal consumption, and promoting feed grain conservation.
(2) Resource advantages
Zhenlai County has a total of 187300 hectares of arable land, 404.19 hectares of garden land, 40300 hectares of forest land, 41100 hectares of grassland, 13800 hectares of urban and industrial land, 9563.47 hectares of transportation land, 95200 hectares of water bodies and water conservancy facilities, and 84200 hectares of other land.
Zhenlai County has abundant power resources, with a clean energy development area of 600 square kilometers. The total installed capacity of thermal power and clean energy within a radius of 100 kilometers is 3 million kilowatts, with a full load power generation of 16 billion kilowatt hours. The total electricity consumption of the society is 5 billion kilowatt hours, and the annual surplus electricity is 11 billion kilowatt hours. It is one of the first batch of clean energy demonstration cities and wind power local consumption demonstration areas in China. The surface water resources reserve is 10.706 billion cubic meters, and the groundwater resources reserve is 377 million cubic meters, of which the annual exploitable groundwater resources are 276 million cubic meters.
Zhenlai County is located at 450 north latitude, which is suitable for crop growth. It has 3 million acres of arable land and an annual grain output of over 3 billion kilograms. It is one of the important commodity grain production bases in the country and has been rated as an “advanced county in national grain production” for nine consecutive years. It has the annual production of 600000 tons of corn and annual trading volume of 1.5 million tons.
(3) Industrial advantages
The corn processing in Baicheng City is mainly driven by 16 leading enterprises at or above the city level, such as Jilin Meihua and Ande Animal Husbandry Co., Ltd. Corn deep processing products rely on amino acid, sodium glutamate, citric acid, xanthan gum, etc. Among them, Jilin Meihua is the world’s largest lysine production base. The L-lysine hydrochloride produced is exported to 75 countries and regions such as the Netherlands, Spain, and India, while monosodium glutamate is exported to 35 countries and regions such as Indonesia and the Philippines. Feed processing is mainly driven by 9 processing enterprises such as Taonan Jindou and Da’an Wanghua. The processing of fresh corn is mainly driven by seven processing enterprises, including Da’an Xianda and Taonan Woyuan. Xianda’s “Nianxiangyu” and Woyuan’s “Fengshuo” frozen sticky corn are popular domestically. Corn flour, corn residue, and corn grits are mainly processed in small quantities by some family farms and cooperatives.
Zhenlai County can utilize a grassland area of 1.31 million mu, relying on Asia’s largest Feihe 30000 cow monoculture pasture, the world’s largest 500000 dairy goat breeding and dairy processing project, and Ji’nan’s 100000 fattening cattle project, to build “the largest dairy county in Jilin Province” and “the largest livestock breeding county in Jilin Province”. There are 5 large-scale beef cattle breeding bases in the area, with a total of 145000 beef cattle and an annual slaughter and processing capacity of 100000 cattle.
The first phase of Jilin Xielian Biotechnology Co., Ltd.’s new green and intelligent citric acid project is expected to consume 700000 tons of corn annually and achieve an annual output value of 4 billion yuan after completion and production in Zhenlai County.
(4) Talent advantages
Baicheng City has several colleges and universities, including Baicheng Normal University, Baicheng Medical College, and Baicheng Vocational and Technical College. It is actively introducing Baicheng Industrial Vocational and Technical College. After the college is completed, it plans to recruit more than 2000 undergraduate students annually from the whole province and the country, and reach a scale of 10000 students in 4-5 years. At that time, a “university city” with a total of nearly 50000 teachers and students will be formed together with Baicheng Normal University and Baicheng Medical College, which can provide professional technical talents for the project.
There are several research institutes in Baicheng City, including the Academy of Agricultural Sciences, the Academy of Forestry Sciences, the Agricultural Machinery Research Institute, the Livestock Research Institute, and the Research Institute. There are 40873 professional and technical personnel, including 6898 with senior professional titles, 18409 with intermediate professional titles, and 15566 with junior professional titles. Baicheng Academy of Agricultural Sciences is the only comprehensive agricultural research institution in the semi-arid special ecological zone of western Jilin Province. It leads the country in research on oats, sunflowers, miscellaneous grains and beans, and is the forefront and main research group for agricultural technology innovation and promotion in western Jilin Province.
(5) Location advantages
Zhenlai County is located in the center of Northeast Asia, where the Horqin Grassland and the Songnen Plain blend and converge. It is a fortress in Heilongjiang, Jilin, and Inner Mongolia, known as the place where “rooster crowing can be heard in three provinces”. It is a must pass city for entering the eastern part of Inner Mongolia and the western part of Heilongjiang, and an important node city on the fourth Eurasian Continental Bridge planned by the United Nations.
With Zhenlai County as the center and a radius of 500 kilometers, it can comprehensively cover industrial cities and resource rich areas in the northeast region. Within a radius of 200 kilometers, there are 5 prefecture level cities (Songyuan, Baicheng, Qiqihar, Daqing, Ulanhot) and 5 airports surrounding it. It is 340 kilometers southeast of Changchun (airport), 200 kilometers northeast of Qiqihar (airport), 320 kilometers east of Harbin (airport), 150 kilometers west of Ulanhot (airport), and only 40 kilometers away from Baicheng Airport. 850 kilometers away from Dalian Port, 120 kilometers away from Da’an Port, 620 kilometers away from Shenyang, and 1300 kilometers away from Beijing. There are Tumen-Ulanhot Highway and Qiqihar-Shuangliao Highway in Zhenlai County, and the Siping-Qiqihar Railway, Changchun-Baicheng High-speed Railway, Nenjiang-Dandong Expressway and Hunchun-Ulanhot Expressway intersect within the county, integrating Zhenlai into the two-hour economic and living circle of the “Changchun-Jilin-Tumen Development and Opening Pilot Zone” and the “Harbin-Daqing-Qiqihar Industrial Corridor”.
1.2 Contents and scale of project construction
The project covers an area of 50 acres and has a construction area of 42000 square meters. It will purchase raw material pretreatment, processing and production equipment, product quality testing instruments and other auxiliary equipment with advanced domestic and foreign technology levels. And supporting facilities such as production workshops, warehouses, office buildings, staff living quarters, and other auxiliary buildings will be constructed.
1.3 Total investment of the project and capital raising
1.3.1 Total investment of the project
The total investment of the project is 100 million yuan, including the construction investment of 80 million yuan and current funds of 20 million yuan.
1.3.2 Capital raising
Self-financing by the enterprise
1.4 Financial analysis and social evaluation
1.4.1 Main financial indexes
After the project reaches the production capacity, its annual sales revenue will be 87 million yuan, its profit will be 13 million yuan, its investment payback period will be 10 years (after the tax, including the construction period of 2 years) and its return on investment will be 13%.
Note: “10 thousand yuan” in the table is in RMB.
1.4.2 Social evaluation
The construction of the project can promote the adjustment of corn planting structure in Zhenlai County, effectively improve the utilization rate and added value of corn processing by-product germ meal, enhance the overall nutritional value of livestock and poultry feed, and promote the stable development of animal husbandry.
1.5 Cooperative way
Joint venture, cooperation or sole proprietorship, and other methods are negotiable.
1.6 What to be invested by the foreign party
Funds, and other methods can be discussed face-to-face.
1.7 Construction site of the project
Zhenlai County, Baicheng City
1.8 Progress of the project
It is attracting foreign investment.
2. Introduction to the Partner
2.1 Basic information
Name: Investment Promotion Office of Zhenlai County
Address: Floor 8, Minsheng Building, Zhenlai County, Baicheng City
2.2 Overview
Zhenlai County is located in the northwest of Jilin Province, at the junction of Jilin Province, Heilongjiang Province, and Inner Mongolia, and is a convergence zone of the Songnen Plain and the Horqin Grassland. Located between the north latitude 45° 28' to 46° 18' and east longitude 122° 47' to 124° 04'. The border between Jilin and Inner Mongolia is 53.35 kilometers long, and the border between Jilin and Heilongjiang is 190.1 kilometers long. To the east is the Nenjiang River, facing Duerbote Mongolian Autonomous County and Zhaoyuan County in Heilongjiang Province across the river, to the west is Ulanhot City in Inner Mongolia Autonomous Region, to the north is Tailai County in Heilongjiang Province and Zhalaite Banner in Inner Mongolia Autonomous Region, and to the southwest and south are adjacent to Baicheng City, Da’an City, and Taobei District, respectively.
Zhenlai Economic Development Zone was established with the approval of the provincial government in 2005, with a total planned area of 18.8 square kilometers. It was promoted to a provincial-level economic development zone in 2012, awarded the title of “China New Urbanization Construction·China Demonstration Park” in 2015, and included in the national development zone directory in 2018. The core area of the development zone has achieved “eight connections and one leveling”, and the supporting construction of a 3.2-kilometer railway dedicated line has been approved by the Shenyang Railway Bureau. It will focus on developing the “four pillar industries” of energy development, medicine and health, agricultural product processing, and equipment manufacturing, and vigorously build the “three characteristic parks” of food industry, equipment manufacturing industry, and grain logistics industry. It will plan and construct four service functional areas of cultural leisure, education and health, high-end commercial housing, and administrative finance, which can meet the production, business, residential, entertainment, financial services and other needs of enterprises and employees at different levels in the area. We have successfully introduced large enterprises such as Feihe Dairy Group and COFCO Group to settle in.
At present, there are 56 enterprises settled in the core area of the development zone, including 11 industrial enterprises above designated size. The pillar industries mainly cover four aspects: first, the agricultural and sideline product processing industry represented by Feihe Dairy Group; the second is the pharmaceutical and health industry represented by Yinnuoke Pharmaceutical Co., Ltd.; the third is the new equipment manufacturing industry represented by Chenglai Electric Co., Ltd.; the fourth is the new energy industry represented by Zhonghe Biomass Thermal Power Plant.
2.3 Contact method
Postal code: 137300
Contact person: Liu Jide
Tel: +86-436-7293698 +86-13943627968
Contact method of the city (prefecture) where the project is located:
Contact person: Xu Zengchun
Tel: +86-436-3203010 +86-13894682986
Fax: +86-436-3224565
E-mail: bcjhj07@126.com