Processing of Agricultural Products and Food
Straw Comprehensive Utilization Project of Siping City
1. Introduction to the Project
1.1 Project background
1.1.1 Product introduction
This project uses crop straw as raw material to produce a series of high-quality products, including forage, organic fertilizers, activated carbon, high calorific value fuels, carbon fertilizers, liquid fertilizers, soil amendments, decorative boards, biomass oil, wall glue, egg trays, seedling trays, sodium lignosulfonate, industrial accessory liners, snow melting agents, and various paper products.
1.1.2 Market prospect
(1) Market situation of comprehensive utilization of straw
Improvement of comprehensive utilization rate: The comprehensive utilization rate of straw in China has increased from 72.5% in 2011 to 89.8% in 2022. Among them, the proportion of straw feed conversion is 20.2%, the proportion of base material conversion and raw material conversion is 1.9%, the proportion of edible mushroom base material field is 2.28%, the proportion of fuel field is 9.31%, and the proportion of returning farmland and other materials is 66.31%.
Main utilization methods: The main utilization methods of straw include full amount returning to the field for fertilizer utilization, bundling and leaving the field for feed utilization, and energy utilization. Due to the lack of bundling machinery and insufficient ideological understanding, currently about 70% of the fields are fully utilized as farmland and fertilizers. The straw from the fields is mainly used for cattle and sheep feed and as fuel for biomass power plants.
Policy support: The government has introduced a series of policies to support the comprehensive utilization of straw. For example, standards such as the Construction Specification for Straw Storage and Transportation System have promoted the construction of straw storage and transportation systems. In addition, local governments and agricultural and rural departments are actively promoting the comprehensive utilization of straw and providing financial incentives and other measures.
Market prospect:
The growth of market demand: With the increase of grain production, straw production is also increasing year by year. Straw, as a byproduct of grain and economic crop production, contains abundant protein, vitamins, etc. It can be used to extract various products such as alcohol, bio gasoline, wood vinegar, wood tar, etc. The increasing market demand for these products has driven the market prospect of comprehensive utilization of straw.
Policy promotion: The country‘s emphasis and support for the comprehensive utilization of straw, especially the implementation of policies such as “carbon peak and carbon neutrality” and “rural revitalization”, have provided broad development space for the straw comprehensive utilization market. Local governments are also actively promoting related projects, attracting social capital investment, and enhancing regional influence.
Technological progress: With the advancement of technology, the comprehensive utilization of straw continues to expand. For example, the development of products such as straw fuel, straw building materials, and straw charcoal has further promoted the diversification and scale of the market.
Policy support:
National standard: The recommended national standard "Construction Specification for Straw Storage and Transportation System" has been released, which will further standardize the construction and management of straw storage and transportation system.
Financial incentives: Local governments provide financial incentives for the construction of straw storage greenhouses, which affects the enthusiasm of investors to build straw storage greenhouses. For example, Anhui Province’s financial incentive policy for the construction of straw storage greenhouses does not exceed 8010 thousand yuan.
In summary, the comprehensive utilization market of straw continues to develop with policy support, market demand continues to grow, and technological progress has also brought new development opportunities to the market.
(2) Market demand for comprehensive utilization of straw
The market demand for straw comprehensive utilization projects is extremely broad, with main demand areas covering biomass energy, organic fertilizers, building materials, feed, and edible mushroom base materials.
1. Market demand areas
Biomass energy: Straw, as a raw material for biomass energy, can be used to produce biofuels, biogas, or directly burned for power generation. With the continuous increase in demand for renewable energy, straw has shown great potential as a carbon neutral energy option.
Organic fertilizers and soil amendments: Properly treated straw can be converted into organic fertilizers or soil amendments, effectively improving soil fertility and water and fertilizer retention performance, and having a profound impact on agricultural production.
Building materials: The cellulose component in straw can be used to manufacture industrial products such as pulp and fiberboard. Especially in the increasingly strict requirements of environmental protection and sustainable development, the potential of straw as a substitute for wood is becoming more and more prominent.
Feed: Straw can be used as a raw material for feed or animal shelters, providing animals with a comfortable living environment and nutritional supply.
Edible fungi-based materials: Straw also has a wide range of applications in the field of edible fungi-based materials, which can meet the nutritional conditions required for the growth of edible fungi.
2. Market demand
According to the Research Report on the Operation Situation and Investment Prospects of China's Straw Industry from 2024 to 2029, the market size of straw comprehensive utilization in China will approach 190 billion yuan in 2022, and will grow to over 206.5 billion yuan in 2023, a year-on-year increase of 8.7%. This reflects the continuous growth of market demand for comprehensive utilization of straw, and the market prospect is extremely broad.
3. Market prospect
With the increasing awareness of environmental protection and the growing demand for renewable energy, the market outlook for straw comprehensive utilization projects is very optimistic. Policy support and technological innovation have provided solid support for the expansion of the straw comprehensive utilization market. Looking ahead to the future, with the continuous advancement of technology and the expansion of market demand, the utilization of straw resources is expected to gradually become a key link in sustainable agricultural development and efficient resource utilization.
1.1.3 Technical analysis
The production of water reducing agent (sodium lignosulfonate) through the comprehensive utilization project of straw can be used in industries such as commercial mixing stations and printing and dyeing, improving the efficient utilization rate of straw. The products of straw carbonization process can be processed into crop liquid fertilizer, carbon fertilizer, activated carbon, soil amendment, road snowmelt agent and other products. The solid waste generated in the production process of the above products can be processed into egg trays, seedling trays, industrial accessory liners, other paper products, and process ornaments. The production process can achieve zero pollution and zero emissions throughout the process, meeting environmental protection requirements; at the same time, straw can be processed into raw materials such as lignin and cellulose, which can be used to process environment-friendly ecological boards for decoration and renovation. This board has zero formaldehyde and zero pollution, and can replace or partially replace existing decorative boards. The carbonized substances produced by modern technology from straw can replace or partially replace the existing fuels of surrounding heating companies through technological treatment (according to experiments, the calorific value of this fuel can reach 5800 kcal), saving transportation and production operating costs for various enterprises. This is the future development direction.
1.1.4 Advantageous conditions of project construction
(1) Policy advantages
The Guiding Opinions on the Comprehensive Utilization of Bulk Solid Waste during the 14th Five-Year Plan Period: Vigorously promote the comprehensive utilization of straw, prioritize agricultural use, promote the use of straw as fertilizer, feed, and base material, expand the scale of clean energy utilization of straw, and encourage the use of straw to produce environmentally friendly boards, carbon based products, etc. Establish a sound system for straw collection, storage, and transportation.
The Implementation Plan for Agricultural and Rural Emissions Reduction and Carbon Sequestration: With fertilizer, feed, and energy utilization as the main directions, a number of key counties for comprehensive utilization of straw will be built to improve the national level of straw comprehensive utilization, with a straw comprehensive utilization rate of 88.1%.
Vigorously promote energy conservation and carbon reduction in agriculture and rural areas, and achieve green development in agriculture: By 2025, a preliminary waste recycling system covering various fields and links will have be established.
(2) Industrial advantages
Siping City is an old industrial city with rich industrial foundation and mature industrial chain. Siping City is an important grain warehouse in Northeast China, with an annual collection of about 5.5 million tons of straw and sufficient raw materials to meet the production needs of enterprises. The total cultivated land area in Shuangliao City is 2.8036 million mu, and the grain output is stable at a stage level of 2.533 billion jin. At the same time, it can produce about 1.176 million tons of straw and rice straw.
(3) Location advantages
Shuangliao City is located in the southwest of Jilin Province, at the junction of Jilin Province, Liaoning Province, and Inner Mongolia, and is known as the “thoroughfare of the three provinces”. Its transportation network includes Siping-Qiqihar Railway and Dahushan-Shuangliao Railway, and there are three highways running through the entire area: Shuangliao-Nenjiang Expressway, Daqing-Guangzhou Expressway, and Changchun-Shenzhen Expressway. In addition, Shuangliao City has two national highways and one provincial highway, forming a transportation network with railways and highways as the backbone, greatly facilitating economic exchanges with the outside world.
The transportation advantages of Shuangliao City are not only reflected in its geographical location and transportation network, but also in its potential as a logistics hub. Shuangliao City is located in the central area of Northeast Asia and serves as a bridgehead for the southern opening of the Harbin-Changchun city cluster, with a radiation area of 1.24 million square kilometers. Highways and high-speed railways have incorporated Shuangliao into the “half-hour metropolitan area” of Shenyang and Changchun, further enhancing its transportation convenience.
The location and transportation advantages of Shuangliao City are obvious, with convenient transportation and superior geographical location, making it an important transportation hub and logistics distribution center in Northeast China.
(4) Talent advantages
Siping has several universities including Jilin Normal University, Boda College of Jilin Normal University, Jilin Agricultural Engineering Vocational and Technical College, Siping Vocational University, as well as Hongzui Vocational and Technical College under construction, Siping Medical of CollegeJilin University, and Siping Radio and Television University. Among them, Jilin Normal University is a key university in Jilin Province, with 16302 full-time undergraduate students, 1844 graduate students, 336 international students, and 15131 adult education students. It can cultivate thousands of higher education talents to the society every year. Surrounding cities such as Changchun, Harbin, and Daqing have numerous universities that can provide over 500000 high-level talents annually. These talents can provide technical support for project construction.
1.2 Contents and scale of project construction
The land area is 12 hectares, with a total new construction area of 70000 square meters. The main construction includes the straw deep processing workshop, laboratory, office building, warehouse, and supporting building; Purchase various types of production line equipment and related supporting facilities for construction.
With crop straw used as raw material, the high-quality forage, organic fertilizer, activated carbon, high calorific value fuel, carbon fertilizer, liquid fertilizer, soil amendment, decorative board, biomass oil, wall glue, egg tray, seedling tray, sodium lignosulfonate, industrial accessory lining, snow melting agent and other paper products are produced.
1.3. Total investment of the project and capital raising
The total investment of the project is 420 million yuan, including the construction investment of 330 million yuan.
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 280 million yuan, its profit will be 84 million yuan, its investment payback period will be 6 years (after the tax, including the construction period of 1 year) and its return on investment will be 20%.
Note: “10 thousand yuan” in the table is in RMB.
1.4.2 Social evaluation
1. Improving the ecological environment : The straw comprehensive utilization project reduces straw burning through various means, thereby reducing air pollution and greenhouse gas emissions.
2. Increasing Farmers’ Income: The straw comprehensive utilization project provides farmers with an additional source of income by converting straw into high value-added products.
3. Increasing employment opportunities: The construction and operation of the project require a large amount of human resources, including production, sales, logistics, and other links, which provide a large number of employment opportunities for local residents, especially in rural areas, and can effectively alleviate employment pressure.
1.5 Cooperative way
Sole proprietorship, joint venture or cooperation
1.6 What to be invested by the foreign party
Funds, and other methods can be discussed in person.
1.7 Construction site of the project
Shuangliao City
1.8 Progress of the project
The project proposal has been prepared.
2. Introduction to the Partner
2.1 Unit basic information
Name: Shuangliao Municipal People’s Government
Address: 1980 Liaohe Road, Shuangliao City, Siping City
2.2 Unit overview
Shuangliao City is located at the junction of Jilin Province, Liaoning Province, and Inner Mongolia, adjacent to the Songliao Plain and the Khorchin Grassland, and is known as the place where rooster crows can be heard by people in three provinces. The jurisdiction covers an area of 3121.2 square kilometers, with a permanent population of 320000. It has jurisdiction over 18 townships (streets) and 1 provincial-level economic development zone. There are 2 railways and 4 national and provincial trunk lines within the territory, making it the only node city in Jilin Province with 4 highways and 9 highway exits.
Shuangliao is rich in resources and located in the world’s “golden corn belt”, with unique agricultural resources. Convenient transportation, fertile soil, abundant resources, and significant resource advantages. The total cultivated land area in Shuangliao City is 2.8036 million mu, and the grain output is stable at a stage level of 2.533 billion jin. At the same time, it can produce about 1.176 million tons of straw and rice straw. The planting area of corn in the city has reached 2.03 million mu, with a yield of about 2.1 billion jin; the rice planting area is 350000 mu, with a yield of about 380 million jin; the soybean planting area is 200000 mu, with a yield of about 50 million jin; the peanut planting area is 132500 mu, with a yield of about 77 million jin. In recent years, Shuangliao has successively won honorary titles such as National Grain Producing County, National Commodity Grain Base County, and Full Mechanization Demonstration County.
Shuangliao City has always adhered to the development of modern agricultural industry as the core, and is determined to vigorously cultivate modern agricultural industry clusters.
2.3 Contact method
Contact method of the county (city/district) where the project is located:
Contact person: Huang Xibo
Tel: +86-13844438112
Contact method of the city (prefecture) where the project is located:
Contact unit: Siping Economic Cooperation Bureau
Contact person: Wen Dacheng
Tel: +86-434-3260536
mail: spjhjjhk@163.com