1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

The project relies on the agricultural advantages of Jilin City and utilizes advanced drying and production technologies to construct a mushroom industry park in China-Singapore Jilin Food Zone, integrating high-end edible mushroom three-dimensional planting, agricultural tourism, product deep processing, cold chain warehousing, and logistics.‌

Due to the use of natural organic methods for production, the mushrooms in the project have a richer nutrient content compared to ordinary mushrooms, including vitamins, minerals, and dietary fiber.

1.1.2 Market prospect

(1) Market situation of edible fungi

Edible fungi, generally speaking, refer to mushrooms, which have large fruiting bodies and are edible fungi (large fungi). At present, there are over 2000 types of edible fungi available worldwide, with more than 350 known edible fungi in China. Among them, common edible fungi include shiitake mushrooms, shiitake mushrooms, mushrooms, fungus, Tremella fuciformis, monkey heads, bamboo mushrooms, matsutake mushrooms (matsutake mushrooms), shiitake mushrooms, red mushrooms, Ganoderma lucidum, cordyceps, truffles, white mushrooms, and boletus mushrooms; A few belong to the subphylum Ascomycota (including morel mushrooms, saddle mushrooms, truffles, etc.). The above-mentioned fungi grow in different regions and ecological environments.

The mushroom industry, as an important component of the edible fungi industry, has experienced rapid development in China in recent years. As the world’s largest producer of edible fungi, China ranks among the top in terms of mushroom production and output value. According to statistics, the total output of edible fungi in China in 2023 is about 43.2566 million tons, with a total output value of 410.27 billion yuan, of which mushroom products account for a considerable proportion.

In recent years, the edible fungi industry has experienced rapid development worldwide. According to statistics, there are over 40-50 types of edible fungi that can be artificially cultivated on a large scale worldwide. The edible fungi industry is a rapid rural economic development project that integrates economic, ecological, and social benefits. It is also a type of organic, nutritious, and healthy green food.

With the increasing attention to healthy eating, edible fungi are becoming more and more popular among consumers due to their rich nutritional value and unique taste. At the same time, with the advancement of technology, the artificial cultivation techniques of edible fungi are constantly improving, greatly improving the production efficiency of edible fungi and meeting market demand. In addition, the application fields of edible fungi are constantly expanding. In addition to traditional cooking purposes, they are also widely used in fields such as medicine and health products.

In recent years, thanks to the high attention and policy support from the government, especially since the 18th National Congress of the Communist Party of China, China’s edible fungi industry has accelerated its development, and market prospects have been continuously favored. Although severely affected by the epidemic since 2020, China’s edible fungi industry has maintained steady development. Up to now, the edible fungi market in China has initially formed a development pattern of scale, standardization, specialization, and depth. And due to its “five-non-competition” advantages (i.e. “not competing with people for grain”, “not competing with grain for land”, “not competing with land for fertilizer”, “not competing with agriculture for time”, “not competing with other resources”), edible fungi have become the fifth largest agricultural planting industry in China after grain, oil, vegetables, and fruits.

To promote the development of the edible fungi industry, relevant government departments have successively issued a series of policies. In July, 2022, the State Administration for Market Regulation issued Standard Announcement No. 8 of 2022, approving the release of 310 recommended national standards and 5 national standard modification forms. Among them, the standard related to edible fungi is the General Principles for the Quality of Canned Edible Fungi (GB/T14151-2022), which will be implemented on August 1, 2023. In 2023, “cultivating and expanding the edible fungi industry” was once again written into the No. 1 Document of the Central Government. It can be seen that the edible fungi industry has great potential for development.

(2) Current situation of trade in edible fungi products

The export volume of edible fungi products in China is much higher than the import volume, and the import and export trade amount has been in a surplus trend for many years; from 2019 to 2023, the trade surplus of edible fungi products in China fluctuated from 2.042 billion US dollars to 2.948 billion US dollars, an increase of 906 million US dollars or about 44.39%, with an average annual compound growth rate of about 9.62%.

The export unit price of Chinese edible fungi products is higher than the import unit price in most years. In 2023, the export unit price of Chinese edible fungi products will be 0.64 US dollars/kg higher than the import unit price. Compared with 2019, the import unit price of edible fungi products in China has increased by 0.43 US dollars per kilogram, with a growth rate of about 14.13%; the export unit price increased by 0.53 USD/kg, with a growth rate of approximately 15.08%.

In 2023, the import volume of edible fungi products in China was 1293.91 tons, with an import amount of 4.463 million US dollars; among them, the import volume and import amount of edible fungi account for 0.79% and 3.62% of the total import volume and import amount of edible fungi products in China, respectively; the proportion of mycelium import volume and import amount is 91.61% and 65.28%, respectively; the import volume and import amount of canned edible fungi account for 7.6% and 31.1%, respectively.

In 2023, the export volume of edible fungi products in China was 721542.78 tons (approximately 721500 tons), with an export value of 2952.4718 million US dollars (approximately 2.952 billion US dollars); among them, the proportion of edible fungi export volume and export value in the national edible fungi product export volume and export value is 37.94% and 45.71%, respectively; the proportion of mycelial export volume and export value is 21.68% and 2.91%, respectively; the export volume and export value of canned edible fungi account for 40.38% and 51.38%, respectively.

The import unit price of edible fungi is the highest, and the import unit price of canned edible fungi is slightly lower than that of edible fungi. The import unit price of mycelium is significantly lower than that of edible fungi and canned edible fungi; the export unit price of canned edible fungi is the highest, slightly lower than that of canned edible fungi, and the export price of mycelium is much lower than that of canned edible fungi and edible fungi. In 2023, the trade competitiveness index of edible fungi, mycelium, and canned edible fungi in China will be significantly greater than 0. These three types of edible fungi products have obvious international competitiveness in the international market, and all have significant competitive advantages.

(3) Development trends of edible fungi market

With the deepening of people’s understanding of the health and health functions of edible fungi and the research on the active ingredients in edible fungi, edible fungi are increasingly widely used in the production of drugs and health products. The development of deep processing technology for edible fungi has extended the industrial chain of edible fungi, increased the added value of edible fungi production, provided greater business development space and potential market size for edible fungi production enterprises, and optimized the consumption demand for edible fungi through the increase in product diversity.

China has diverse natural geographical conditions and an extremely rich variety of edible fungi. In the process of industry development, three main production modes have been formed: traditional farming, enterprise+farming, and factory production. At present, there are problems in the industrial production of edible fungi in China, such as limited variety, outdated technology, shortage of industrial talents, uneven regional consumption, and high production costs. The resolution of these issues will determine the development trend of factory production in China, such as the standardization of enterprise production management and the gradual rise of supporting industries for edible fungi factory production.

In the context of the Internet era, the “Internet +” marketing model is gradually emerging. The agricultural products sold on the Internet e-commerce platform are mainly divided into agricultural materials and agricultural products. On agricultural product e-commerce platforms, in addition to fresh products, edible fungi products also come in various forms such as dried, canned, and pickled products. Diversified edible fungi products are very suitable for expanding sales channels through e-commerce.

The General Office of the State Council has issued the Opinions on Practicing the Big Food Concept and Building a Diversified Food Supply System, one of the key tasks of which is to develop and strengthen the edible fungi industry and develop edible fungi food. Guided by the concept of healthy eating, edible fungi are no longer an unattainable delicacy in the mountains and forests. With their unique nutritional value and flavor, they not only increase the “mushroom content” of table food and enrich people’s taste buds, but also become an important part of the food chain and an indispensable part of modern food culture.

In the future, with the deepening development of healthy eating trends and the continuous emergence of technological innovation, the edible fungi industry will usher in a broader development prospect.

1.1.3 Technical analysis

Not limited to current technology, if the resident enterprise has innovative technology, the resident enterprise’s technology will be adopted, and this technical analysis is only for reference.

Mushroom cultivation technology: The entire production process of shiitake mushrooms must be carried out in accordance with the production methods of organic agriculture. The production technology standards for organic food must be strictly followed throughout the entire production process. Artificial chemicals such as fertilizers, pesticides, growth regulators, etc. are not used in the production process. Genetic engineering technology and products are not used. At the same time, independent organic food certification agencies must conduct quality control and review throughout the entire process.

The innovative technologies for mushroom drying mainly include air source heat pump drying technology and low-temperature drying technology. ‌

Air source heat pump drying technology: An air source heat pump dryer is an efficient device that uses air as a heat source to transfer heat from low-temperature air to the drying room through a compressor, achieving material drying.

Low temperature drying technology: The low temperature drying technology is a technique that completes the drying process at a lower temperature, which can maximize the preservation of the natural color, nutritional components, and taste of mushrooms.

Process flow: cleaning impurities - classification - slicing - arranging slices - drying - bagging and storage

1.1.4 Advantageous conditions of project construction

(1) Policy advantages

In 2024, the website of the State Council released the Opinions of the General Office of the State Council on Practicing the Big Food Concept and Building a Diversified Food Supply System, which requires accelerating the construction of a diversified food supply system that integrates grain, economy, feed, agriculture, forestry, animal husbandry, and fishery, and combines plants, animals, and microorganisms to achieve a balance between supply and demand of various types of food, providing solid guarantees for ensuring national food security and building an agricultural power. Develop and strengthen the edible fungi industry, and develop edible fungi food. Strengthen the exploration, protection and utilization of edible fungi germplasm resources, and enhance functional breeding and targeted breeding of edible fungi. Intensify intellectual property protection and strengthen the construction of strain breeding technology system. Upgrade edible fungi production facilities, guide business entities to use modern equipment and advanced technology, and promote high-level, factory based production models. Guide the development of deep processing of edible fungi, develop ready to eat foods, health foods, and biological products. Carry out research on the comprehensive utilization of bacterial residue and by-products, and accelerate the industrial application of feed substitution, organic fertilizers, etc.

The Opinions on Effectively Promoting the Comprehensive Revitalization of Rural Areas through Learning and Applying the Experience of the Thousand-Village Demonstration and Ten-Thousand-Village Rectification Project proposes to promote the coordinated development of agricultural product production, primary processing, and deep processing, and to promote the transformation and value-added of local products. Promote the transformation and upgrading of agricultural product processing facilities, support the construction of regional pre-cooling and drying, storage and preservation, fresh cutting and packaging facilities, and develop intelligent and clean deep processing.

The Notice of the General Office of the People’s Government of Jilin Province on the Measures to Accelerate the High-quality Development of the Edible and Medicinal Fungi Industry in the Province proposes that during the 14th Five-Year Plan period, Jilin Province’s edible and medicinal fungi industry high-quality development expenditure direction will be added to the provincial rural revitalization special fund, and existing relevant funds available for edible and medicinal fungi development will be coordinated to support the high-quality development of the edible and medicinal fungi industry in the province in accordance with the “government guidance, industrial and commercial capital participation, and market-oriented operation” mode. Key support will be given to the construction of public welfare projects such as technological innovation in the mushroom industry, research and conservation of excellent bacterial strains, promotion of green production technologies, and regional public brand building. Implement the action to improve the quality of edible and medicinal fungi, and create high-quality green and safety demonstration bases and quality standard demonstration bases. Support the registration of geographical indication protected agricultural products and certified organic and green food by industry associations and leading enterprises in the advantageous production areas of edible and medicinal fungi, and provide certification fee subsidies for certified products. Explore the use of comprehensive methods such as special identification, new product pilot, and third-party testing results to include bacterial steam sterilizers (pots), edible and medicinal mushroom base material bottling (bag) machines, edible and medicinal mushroom harvesting machines, mushroom bag separators, spore breaking machines, etc. in the scope of characteristic agricultural machinery subsidies, in order to improve the equipment level and operational capabilities of edible and medicinal mushroom. Through the joint creation and construction of provinces, cities, and counties, support the creation of a number of specialized towns and villages for edible and medicinal mushrooms in the advantageous characteristic production areas of black fungus, Ganoderma lucidum, Sanghuang, and shiitake mushrooms. Guide leading enterprises in the mushroom industry to settle in professional towns and villages, give priority to supporting the construction of mushroom bag processing workshops, product sorting and packaging factories, and promote the “unified construction of greenhouses, unified supply of bacterial strains, unified production of mushroom bags, unified technology, unified packaging, unified sales, and household management” model to encourage farmers to participate in the development of the edible and medicinal fungi industry.

The Investment Promotion Policy of Jilin City clearly states that the investment projects of Jilin City’s Industrial Investment Guidance Fund should comply with national and relevant industrial policies and development plans, with a focus on investing in tourism, medicine and health, aviation, information technology, new materials, advanced equipment manufacturing, biotechnology, energy conservation and environmental protection, new energy, cultural creativity, modern agriculture, modern service industry and other related industries in Jilin City’s “6411” industrial plan, as well as other areas supported by the municipal government for development. Guiding funds can adopt investment methods such as follow-up investment and direct investment, in addition to setting up sub funds through equity participation; newly introduced investment projects that meet the conditions shall enjoy tax reductions and exemptions in accordance with the current national and provincial tax policies. For the projects with a significant contribution rate in Jilin City, in accordance with the spirit of the Notice of the State Council on Relevant Matters Concerning Tax Preferential Policies (GF [2015] No. 25), relevant departments shall assist enterprises in applying for tax exemptions and reductions in accordance with the law and regulations; establish a special fund for the development of industrial enterprises, and encourage the introduction of major projects in traditional industries such as chemical, automotive, metallurgical, and agricultural product processing in the “6411” industrial system that comply with national industrial policies, have strong industrial support, and have a significant driving effect; encourage the introduction of emerging industries such as medicine and health, new materials, advanced equipment manufacturing, and electronic information. Give priority to the allocation of production factors and recommend relevant national and provincial special funds for support.

China-Singapore Jilin Food Zone is a provincial-level development zone, but has applied for a national level development zone and enjoys the preferential policies of Jilin Province’s “8+2” quasi national level development zone.

(2) Resource advantages

Jilin City’s unique geographical environment and climate conditions have nurtured extremely rich agricultural characteristic resources. The rice production in the city accounts for a quarter of the grain crops, and the planting area of ginseng under the forest is the largest in the country. One out of every three high-quality ginseng under the forest is produced in Jilin City. The production of Ganoderma lucidum is the highest in the province, and the production of black fungus is the second highest in the province. It can be vividly said that Jilin City is a treasure trove of precious, wild, rare, famous, and excellent agricultural products in the country.

Jilin City enjoys many reputations such as “Hometown of Chinese Japonica Rice Tribute Rice”, “Hometown of Chinese Black Fungus”, and “Hometown of Chinese Sweet and Glutinous Corn”. During the Qing Dynasty, it was a major production area and distribution center for famous agricultural products. The “Jilin” agricultural products have a rich heritage, distinctive characteristics, and excellent quality. Jilin City focuses on amplifying the quality advantages of “green grain”, “safe meat”, “organic fungi”, and “Songhua fish”, cultivating the regional public brand of “Jipinggong” in all categories, establishing enterprise brands such as “Laoyeling” and “Fuyuanting”, building a brand matrix of “regional brand+enterprise brand+product brand”, expanding the “online and offline” markets, and promoting more high-quality agricultural products to go out of Jilin and the country.

China-Singapore Jilin Food Zone is located in Yongji County, Jilin City, with a planned area of 57 square kilometers, including 36 square kilometers of planned land. There is a large stock of available land resources for development, and new and reserved land can meet the needs of new projects. The land price is at a low level among the 41 cities in Northeast China.

(3) Industrial advantages

China-Singapore Jilin Food Zone is another important cooperation project between China and Singapore, following Suzhou Industrial Park and Tianjin Eco City. The project construction will highlight the theme of “food quality and safety”, aiming to create an international first-class production and processing base for safe and healthy food.

China-Singapore Jilin Food Zone plans six major functional areas: food processing park, warehousing and logistics area, modern commercial and residential area, administrative office and science, education, culture and health area, leisure resort area, and landscape green area; Carry out experimental demonstrations of modern agriculture in the cooperation area, connect with the food processing park industry, promote the integrated development of the primary, secondary, and tertiary industries and the structural reform of the agricultural supply side, and build the industrial system, production system, and management system of modern agriculture.

(4) Talent advantages

Jilin City has universities such as Northeast Electric Power University, Jilin Institute of Chemical Technology, Beihua University, Jilin Agricultural Science and Technology College, Jilin Medical College, Jilin Electronic Information Vocational and Technical College, Jilin Industrial Vocational and Technical College, Jilin Railway Vocational and Technical College, Jilin General Aviation Vocational and Technical College, etc. These universities provide a continuous supply of talent support for production enterprises.

At the same time, Jilin City has a large number of high-quality industrial workers and a large number of highly skilled industrial workers. After training by enterprises and public welfare institutions, more than 10000 skilled talents are sent to society every year, and more than 20000 people of various types are trained for society.

Jilin City has obvious advantages in terms of labor resources, with a high proportion of skilled workers in the Northeast urban agglomeration. The labor force is in a dividend period, and labor costs are relatively low, which can meet the needs of various enterprises.

(5) Location and transportation advantages

China-Singapore Food Zone is located in Chaluhe Town, Yongji County, Jilin City, Jilin Province. It is situated in the center of the Northeast Asian economic circle, 240 kilometers away from Harbin City, 350 kilometers away from Shenyang City and Hunchun Port, and 780 kilometers away from Dalian Port. The park has a superior geographical location and convenient transportation.

The transportation network around the park is well-developed, including various modes of transportation such as highways and railways, which can quickly connect surrounding cities and regions. Specifically, there are transportation facilities such as highways and railways within the park, which can provide convenient conditions for logistics transportation. The park is located in the central area of the Northeast Asian economic circle, which can quickly connect domestic and foreign markets, attract domestic and foreign investment, and promote regional economic development.

1.2 Contents and scale of project construction

1.2.1 Construction scale

The total area of the project is 60000 square meters.

1.2.2 Construction contents

The total construction area of the project is 62000 square meters, mainly consisting of 6 edible mushroom three-dimensional planting greenhouses, 1 agricultural tourism comprehensive service center, 1 agricultural experience center, 5 product deep processing plants, 1 visualization plant, 2 cold chain warehouses, and 1 logistics distribution center.

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 400 million yuan, including the construction investment of 304 million yuan and current funds of 96 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 666.67 million yuan, its profit will be 83.33 million yuan, its investment payback period will be 7 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

The construction of the fungi industry park will help promote the modernization process of agriculture in Jilin region. By introducing advanced planting techniques and management experience, the yield and quality of mushrooms have been improved, while paying attention to ecological protection and sustainable development, setting a new benchmark for the modernization of agriculture in Jilin. This not only helps to enhance the market competitiveness of Jilin’s agricultural products, but also promotes the transformation and upgrading of the agricultural industry. The construction of fungi industrial parks is closely linked to the rural revitalization strategy. By developing the mushroom industry, it promotes the integrated development of the primary, secondary, and tertiary industries in rural areas, and increases agricultural added value and farmers’ income levels. At the same time, industrial parks can also improve rural infrastructure and public service conditions, and enhance the overall development level of rural areas.

1.5 Cooperative way

Joint venture or cooperation, and other methods can be discussed face-to-face.

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

China-Singapore Jilin Food Zone, Yongji County, Jilin City

1.8 Progress of the project

It is attracting foreign investment.

2. Introduction to the Partner

2.1 Basic information

Name: Management Committee of China-Singapore Jilin Food Zone

Address: China-Singapore Jilin Food Zone, Yongji County, Jilin City

2.2 Overview

China-Singapore Jilin Food Zone is located in Chaluhe Town, Yongji County, Jilin Province, with an administrative area of 57 square kilometers. On December 19, 2019, China-Singapore Food Zone was selected as a national pilot zone for urban-rural integrated development. The food area is planned as a core area and a control area, forming a radiating area outward.

Core area: located in Chaluhe Town, Yongji County, with a planned area of 57 square kilometers, it is planned to have six functional areas including food processing, warehousing and logistics, modern commercial and residential, administrative office, leisure vacation, and landscape green space, promoting the construction of an ecological city.

Control area: With a planned area of 1450 square kilometers, it extends from Zhanghualing in the east, Ma’an in the south, Yinmahe in the west, and Taiping Wetland in the north. The region’s rivers and wetlands are used as natural barriers to form a closed system. In accordance with the standards of the World Organization for Animal Health (OIE), strict control and management are implemented to focus on the construction of disease-free and breeding parks, and to carry out experimental demonstration work in modern agriculture.

Radiation areas: Radiate to Jilin Province, Liaoning Province and Heilongjiang Province, and some areas of Inner Mongolia Autonomous Region from the control zone. Through strict quality certification, select and determine the raw material production base in the food zone to meet the supply of raw materials in the food zone.

2.3 Contact method

Postal code: 132000

Contact person: Nie Wenhui

Tel: +86-13944263311

E-mail: 1519626567@qq.com

Contact method of the city (prefecture) where the project is located:

Contact unit: Investment Promotion Service Center of Jilin Municipal Bureau of Commerce

Contact person: Jiang Yuxiu

Tel: +86-432-62049694   

    +86-15804325460  

E-mail: jlstzcjfwzx@163.com