1. Introduction to the project

1.1 Project Background

1.1.1 Product Introduction

Ginseng, also known as Huangshen, Dijing, Shencao, and the king of hundreds of herbs, is one of the famous "Three Treasures of Northeast China". Its active ingredient, ginsenosides, can nourish Qi and Yin, clear fire and produce fluids, resist fatigue and hypoxia, improve the body's stress ability, enhance cell endurance, restore physical strength, regulate immunity, etc. It has the effect of strengthening the body.

Mountain wild vegetables refer to wild or semi wild plants that grow naturally in the wild without artificial cultivation, and their roots, stems, leaves, flowers, or fruits can be used as vegetables for consumption. They have a good taste and are characterized by nutrition, nourishment, health care, pure nature, and no pollution.

The project utilizes the natural wild vegetable resources and ginseng planting resources of the Changbai Mountain Range in Jiaohe City to produce and process a series of ginseng and wild vegetable foods.

1.1.2 Market prospect

1. Development status and prospects of ginseng industry

(1) The current development status of the global ginseng industry

Ginseng is known as the "King of Hundred Herbs" and "Oriental Divine Grass" due to its magical medicinal and health benefits. It is a dual-use herb with high medicinal value. In addition to being widely used in formula medicine, it has also entered various fields such as health products, cosmetics, food, beverages, gifts, ginseng cigarettes, ginseng wine, ginseng sugar, ginseng tea, etc. In recent years, global ginseng production has steadily increased. In 2021, the global ginseng production reached 84,677 tons, and in 2023, the global ginseng production reached 97,321 tons. Currently, ginseng is mainly produced in seven countries including R.O.K., D.P.R.K., Russia, the United States, Canada, Japan, and China. Among them, China accounts for more than 80% of the global production. Data shows that the global ginseng market size is expected to reach approximately 46.6 billion RMB yuan in 2023, and is expected to maintain a steady growth trend in the coming years. By 2029, the market size will approach 89.6 billion RMB yuan, with a compound annual growth rate of about 9.6%.

(2) Development Status of Ginseng Industry in China

In recent years, the production and sales of ginseng in China have maintained a growth trend. In 2021, the output of fresh ginseng in China reached 69,850 tons, of which Jilin accounted for 56.78%, Heilongjiang accounted for 28.63%, Liaoning accounted for 7.37%, and the demand reached 70,031.9 tons. From the perspective of price trend, the average price of fresh ginseng in China has gradually declined since 2014. The average price of fresh ginseng in China was 121.4 RMB yuan/kg in 2021, and about 120.6 RMB yuan/kg in 2023.

From 2020 to 2023, the number of ginseng imports in China continued to grow due to the epidemic. The import quantity reached about 90 tons in 2023, a year-on-year increase of 21.8%. The import amount remained stable from 2022 to 2023, reaching approximately 32.29 million US dollars by 2023. From the source of imported products, in 2023, China’s ginseng imports mainly came from Canada, R.O.K. and the United States, of which Canada accounted for about 60%, R.O.K. accounted for about 26%, and the United States accounted for 15%. China is a large producer of ginseng. From the overall situation of China’s ginseng import, China mainly imports refined products with high import value, small quantity but high added value. With the increase in domestic consumer income, the quality requirements for ginseng products have risen, which will drive the industry’s imports. In general, China's ginseng industry has a good import situation. The main competitive pressure comes from the rise of domestic ginseng brands and the improvement of ginseng processing technology.

Table 1 Quantity and Change of Chinese Ginseng Imports from 2017 to 2024 (Unit: ton,%)

From 2019 to 2021, affected by the pandemic, the number of ginseng exports in China continued to decline, reaching a low point in 2021 in recent years. Since 2022, exports have continued to rebound, reaching approximately 2070 tons by 2023, a year-on-year increase of 44%. The overall export value of ginseng shows a W-shaped trend. 2021 is a recent low point, with an export value of only 240000 US dollars. The export value continued to rise from 2022 to 2023, exceeding 1.6 million US dollars by 2023, a year-on-year increase of 46%, and returning to the level of 2017. From the perspective of export destinations, in 2023, the main export destination of ginseng in China was Japan, accounting for more than 40%, followed by Hong Kong and Taiwan, China, accounting for 23.8% and 16.9% respectively, and other regions accounted for less than 5%. In terms of average export price, the average export price of ginseng from 2017 to 2023 fluctuated within the range of 0.5-0.8 US dollars per kilogram. The average export price has slightly increased in 2022, reaching approximately 0.85 US dollars/kg in 2023, but overall it remained relatively stable. In general, the number of ginseng exports in China decreased first and then increased, and there was a warming trend in 2023. From the perspective of export targets, about 40% of China's ginseng exports to Japan, and the average export price is relatively stable. In the long run, with the research and development of ginseng consumer products by domestic enterprises, the added value of ginseng products exported to foreign countries continues to increase, which is expected to increase the number and amount of ginseng exports in China.

Table 2 Quantity and Change of Chinese Ginseng Export in 2017-2024 (Unit: ton,%)

(3) Development Status of Ginseng Industry in Jilin Province

As the largest province of ginseng production in China, ginseng industry is the most advantageous and potential industry in Jilin Province. There are three main ways to plant ginseng in Jilin Province: forest cutting, under-story planting, and non forest planting. Ginseng in Jilin Province is mainly distributed in four regions: Yanbian, Tonghua, Baishan, and Jilin, namely Dunhua City, Hunchun City, Helong City, Antu County, Wangqing County, Fusong County, Jingyu County, Changbai County, Linjiang City, Tonghua County, Liuhe County, Meihekou City, Ji’an City, Jiaohe City, Huadian City, Panshi City, Huinan County, and more than ten major producing counties. To ensure the quality of ginseng, Jilin Province has successively formulated 15 national standards and nearly 50 local standards in the field of ginseng. At the same time, provide standard and green planting plans for farmers. Like planting grains, ginseng cultivation in Jilin Province has also comprehensively carried out soil testing and product testing and certification. The average yield of ginseng per square meter in the province has increased from 16 kilograms to 20 kilograms, with a high quality rate of over 75%.

In 2023, the ginseng industry in Jilin Province has achieved standardized production, refined processing, and branded sales, forming a cluster development trend of deep integration of primary, secondary, and tertiary industries. The production scale and product quality have steadily improved. According to the Ginseng and Mushroom Office of the Provincial Department of Agriculture and Rural Affairs, in 2023, the planting area of ginseng in Jilin Province was 145,000 mu, with a fresh ginseng yield of 34000 tons. The planting area of ginseng under the forest was 1.165 million mu, with a fresh ginseng yield of 34000 tons. The comprehensive output value of the ginseng industry in the province was 70.85 billion RMB yuan, a year-on-year increase of 10.3%, and exceeded 70 billion RMB yuan for the first time.

In recent years, Jilin Province has anchored the goal of building a strong agricultural province, turning the ginseng industry into a billion dollar scale industry, and constructing a new pattern of multi-point support, multi industry development, and diversified development.  In places such as Fusong, Ji'an, Jingyu, Tonghua, and Yanji, an industrial belt dominated by ginseng has been formed, and many ginseng production enterprises and ginseng pharmaceutical enterprises have emerged.  Among them, Zixin Pharmaceutical, Yisheng Pharmaceutical, and Kangmei Xinkaihe (Jilin) Pharmaceutical Co., Ltd. are the main representative ginseng enterprises.

(4) Development prospects of ginseng industry

With the continuous diversification of downstream demand for ginseng, the market demand for ginseng will show an increasing trend. It is expected that the domestic demand for ginseng will continue to grow rapidly in the next few years, and the demand for fresh ginseng in China may reach 837.393 million tons by 2028.

2. Market status and prospects of the wild vegetable industry

Wild vegetables refer to wild vegetables that grow in forests and fields, with rich nutritional value and unique flavor.  According to the different types of plants and edible parts, wild vegetables can be divided into multiple sub fields, mainly including ferns, shepherd's purse, purslane, bitter vegetables, Chinese toon, etc. These wild vegetables not only hold an important position in traditional Chinese culinary culture, but have also gradually gained popularity among modern consumers in recent years.

(1) Market size and growth trend

In 2023, the market size of Chinese wild vegetables reached about 12 billion RMB yuan, a year-on-year increase of 10%. Ferns and shepherd's purse are the two main niche markets, accounting for 30% and 25% of the market share, respectively. The market share of other wild vegetables such as purslane, bitter cabbage, and toon accounts for a total of 45%. It is expected that by 2025, the market size of Chinese wild vegetables will reach 15 billion RMB yuan, with a compound annual growth rate of about 8%.

(2) Consumer preferences and changes in demand

With the increasing awareness of health and the trend of consumption upgrading, more and more consumers are paying attention to natural and green food. In 2023, the per capita consumption of wild vegetables by urban residents in China reached 2.5 kilograms, a year-on-year increase of 15%. Young consumers (aged 18-35) have the highest proportion of consumption, reaching 40%, and they are more inclined to purchase wild vegetable products through e-commerce platforms. It is expected that by 2025, the per capita consumption will further increase to 3 kilograms, and the proportion of young consumers' consumption will increase to 45%.

(3) Industrial chain structure and major participants

The Chinese wild vegetable industry chain mainly includes three links: planting, processing, and sales. In the planting process, it is mainly concentrated in the Northeast, North China, and Southwest regions, where the climate conditions are suitable for the growth of wild vegetables. In 2023, the production of wild vegetables in Northeast China accounted for 40% of the total national production, while North China and Southwest China accounted for 30% respectively. In the processing stage, the main enterprises include Lvye Food, Shanye Technology, and Natural Food, which have strong advantages in product quality and technological innovation. In the sales process, e-commerce platforms and large supermarkets are the main sales channels, with e-commerce platforms accounting for 60% of sales in 2023, a year-on-year increase of 20%.

At present, the processing of wild vegetables mainly includes dried products, salted products, canned products, etc., and exports are almost all raw materials. The industrial chain is short, the value-added is not high, and the lack of deep processed food is prominent, which limits the development of the wild vegetable industry. With the continuous deepening of people's understanding of the therapeutic value of wild vegetables and the development of the big health industry, it is to inevitably drive the demand for high-quality and diversified wild vegetable products.

1.1.3 Technical Analysis

1. Production process of wild vegetables

(1) Production process flow chart of boiled water products

Boiled products: Osmanthus fragrans, Prickly sprouts, Celery, Cucumber fragrance, Willow artemisia sprouts, Mushrooms, Prickly leaves.

Acquiring raw materials from the base - Quality qualified raw materials - Foaming and desalination water temperature of 75 ℃ - Pre boiling water temperature of 85 ℃ -90 ℃ - Selection - Inspector inspection - Going to the hair removal machine - Weighing and bagging - Adding filling liquid - Vacuum sealing - Metal detector inspection - Sterilization at 90 ℃ for 50 minutes - Inspection and packaging - Entering the finished product warehouse - Leaving the factory.

(2) Production Process Flow Chart for Dry Category

Dried wild vegetables: ferns, osmanthus, mushrooms, and fungus.

Acquiring raw materials for the base - inspecting qualified materials - selecting and selecting impurities - inspector inspection - metal detector inspection - plastic bag packaging - cardboard packaging, incoming sampling - finished product warehousing - leaving the factory.

(3) Production Process Flow Chart of Salted Products

Salted products: Salted tender shoots, ferns, mountain celery, and sweet potato vines.

Acquiring raw materials from the base - inspecting qualified raw materials - rinsing raw materials - selecting and selecting impurities - inspector inspection - going to the roughing machine - adding saturated salt water for packaging - spot check inspection - sealing and entering the finished product warehouse - leaving the factory.

2. Production process of ginseng

(1) Selection: Select fresh ginseng that has been harvested and unearthed within 24 hours. Clean the impurities and soil on the surface of the fresh ginseng with water to remove surface dirt. Then, drain the surface water to obtain clean and fresh ginseng;

(2) Deep cleaning and screening: Clean and fresh ginseng is placed in a sorting machine for screening. During the screening process, fresh ginseng is slowly rotated and rolled, and then atomized and sprayed to screen out fresh ginseng with a diameter greater than 10mm, resulting in thick and robust fresh ginseng;

(3) Instant high-temperature sterilization: Fresh robust ginseng is subjected to instant high-temperature sterilization treatment at a temperature of 80-90 ℃ for 30-90 seconds to obtain sterile fresh ginseng;

(4) Vacuum freeze-drying: Place pre frozen ginseng in the drying chamber of a ginseng freeze-drying machine for vacuum freeze-drying (including pre freezing sublimation drying desorption drying). The temperature in the drying chamber is -40~-30 ℃, and the vacuum degree is 0~10Pa. The sublimation drying time of pre frozen ginseng is 2.5~3.5 hours, and the temperature in the drying chamber is raised to 28~35 ℃ to obtain dried freeze-dried ginseng.

1.1.4 Advantageous conditions of project construction

(1) Policy advantages

The Notice of the General Office of the People's Government of Jilin Province on Issuing the 14th Five Year Plan for the Development of Baishan Ginseng Industry by the Governor of Jilin Province proposes to rely on the construction of Changbai Mountain ginseng advantage characteristic industry clusters, fully leverage the leading and driving role of key leading enterprises, and vigorously develop ginseng food, pharmaceuticals, health products, cosmetics, biological products, and wild mountain participation products. We will focus on building a consortium of edible ginseng, medicinal ginseng, ginseng cosmetics, ginseng extracts, and specialty wild ginseng deep processing industries in the main ginseng producing areas, effectively promoting the coordinated development of the entire ginseng industry chain and all fields.

The Implementation Opinions of the People's Government of Jilin Province on Accelerating the High quality Development of the Ginseng Industry in the Province propose to focus on supporting research on non-traditional medicinal parts, active substances or effective components, new structures, new targets or new mechanisms of action of ginseng, and accelerate the development of innovative ginseng drugs for intelligence, antiviral, anti myocardial ischemia, and coronary heart disease.  Accelerate the development of diversified and high-end ginseng whitening, moisturizing, skincare and other series of cosmetics and daily chemical products, actively cultivate high-quality and new brands of ginseng daily chemical products.  Applying biotechnology, bioengineering and other methods to accelerate the development of biological products such as ginseng enzymes, ginseng peptides, ginseng roots, and feed additives, further enhancing the comprehensive development and utilization level of ginseng.

The "Development Plan for Under Forest Economy in Jilin Province (2021-2025)" proposes to focus on ginseng production areas such as Tonghua, Baishan, Yanbian, and Jilin, vigorously develop under forest ginseng planting, and create a standardized and high-quality core area for the Changbai Mountain under forest ginseng industry through the implementation of ecological planting and simulated wild cultivation, in order to enhance the brand quality of Jilin under forest ginseng.  Based on the forest resources in the eastern region, we will vigorously develop traditional Chinese medicinal herbs such as Ganoderma lucidum, Sanghuang, Schisandra chinensis, and Tianma, and expand the scale of our industrial base.  Accelerate the construction of characteristic and precious wild vegetable industry bases such as Osmanthus fragrans, Chinese cabbage, and scallions, and create emerging export industries in forest areas for Southeast Asia, Japan, and R.O.K. markets.  Support the active development of facility forestry in areas with conditions, establish off-season wild vegetable bases, and lead the expansion of the green food market.

The 14th Five Year Plan for Industrial Development in Jiaohe City proposes to adhere to the advantages of characteristic resources and vigorously develop the food industry using Changbai Mountain wild grapes, black fungus, sweet sticky corn and other raw materials. Comprehensively promote the development of agricultural product processing towards intelligence and digitization, support the establishment of a product quality traceability and accountability system, target the growing consumer demand for green leisure and healthy organic food among middle-income and above groups, and focus on creating a green brand with Jiaohe characteristics.

(2) Resource advantage

The ginseng plantation in Jiaohe City covers 726 hectares, with 1070 hectares of ginseng under the forest. The annual production of fresh ginseng is 1300 tons, and more than 2000 tons of ginseng stems and leaves can be processed and utilized.  Ginseng is grown in the surrounding counties and cities of Jiaohe, and it is only a 3-hour drive from Fusong County, known as the "hometown of ginseng".

Jiaohe City has abundant wild vegetable resources, with a wide variety of varieties and high yields. More than 30 economically valuable wild vegetables have been identified, including ferns, tender shoots, celery, yellow flowers, Guangdong vegetables, and osmanthus. The reserves of wild vegetables range from 100000 to 150000 tons, with dry products reaching 40000 to 50000 tons. There are also over 100000 tons of wild vegetables within a 50 kilometer radius around Jiaohe River.

(3) Industrial advantages

Jiaohe City is making every effort to build seven standardized production demonstration bases for pollution-free agricultural products, green food, and organic agricultural products, including the standardized production demonstration park for shiitake mushrooms in Qianliu Village, Baishishan Town, and the standardized production demonstration base for green wild vegetables in Wulin Township.  Actively coordinate with the Provincial Agricultural Commission to increase the annual quota for ginseng planting area by more than 20 hectares, establish standardized Changbai ginseng plantations, and standardize ginseng planting standards.

(4) Talent advantage

There are a total of 9 universities stationed in Jilin City. There are nearly 100000 full-time students and about 30000 graduates from higher education institutions every year.  There are about 61000 professional and technical talents and 496,000 skilled talents in the city, including 144000 high skilled talents.

Jiaohe City adds more than 4,000 new laborers every year, and various vocational education and training institutions can train more than 8,500 people in various occupations according to the needs of enterprises every year.

(5) Location advantage

Jiaohe City is located at a key hub with developed transportation. It is situated at the axis of the three northeastern provinces and the center of the Northeast Asian economic circle. It borders the Tumen River economic circle to the east, connects Russia and D.P.R.K. ports to the Sea of Japan, connects the China Mongolia corridor to Outer Mongolia and Europe to the west, connects Shenyang and Dalian to the Bohai Rim to the south, and connects Russia to the Harbin Dalian Qihar Economic Corridor to the north.  The Changyue Expressway, Changyue High speed Railway, National Highway 302, Provincial Highway Yujiang, and Tumen to Beijing and Tumen to Harbin railways run through the entire area. Jiaohe has fully integrated into Jilin's "half-hour economic circle" and Changchun's "1-hour economic circle".  With the deepening implementation of the national Changjitu development and opening-up pilot zone strategy, Jiaohe has become an ideal city for building a processing base and logistics distribution center that connects the Greater Northeast and radiates to five countries in Northeast Asia.

1.2 Contents and scale of project construction

1.2.1 Construction Scale

After the completion of the project construction, the annual production of wild vegetables and ginseng food can reach over 1,000 tons.

1.2.2 Construction Content

The project covers an area of 28,000 square meters, with a building area of 25000 square meters. A newly developed ginseng planting base covers an area of 1 million square meters, and production workshops, warehouses, and comprehensive buildings will be constructed. Equipment for producing freeze-dried foods such as prickly sprouts, Guangdong cuisine, monkey legs, American ginseng, and ginseng will also be purchased.

1.3 Total investment of the project and capital raising

1.3.1 Total investment of the project

The total investment of this project is 150 million yuan, including 120 million yuan for construction investment and 30 million yuan for working capital.

1.3.2 Capital raising

Self-raising of enterprises

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project is completed, the annual sales revenue is 130 million yuan, the profit is 20 million yuan, the investment payback period is 9.5 years (after tax, including a construction period of 2 years), and the investment profit margin is 13.33%.

Note: “10 thousand yuan” in the table is in RMB.

1.4.2 Social evaluation

The project is in line with the leading industry development plan of Jiaohe City, which can effectively promote local economic and social development, create employment opportunities, promote the prosperity and social stability of the county economy, and drive the development of related industries and logistics industry in the surrounding area, with good economic and social benefits.

1.5 Cooperative Way

Joint venture, cooperation, sole proprietorship, other methods are negotiable.

1.6 What to be invested by the foreign party

Funds, other methods can be discussed face-to-face.

1.7 Construction site of the project

Jilin Jiaohe Economic Development Zone.

1.8 Progress of the project

We are currently seeking external investment.

2. Introduction to the partner

2.1 Basic Information

Name: Jilin Jiaohe Economic Development Zone

Address: 18-1 Hongye Street, Jiaohe City, Jilin Province, China

2.2 Overview

Jiaohe City is located in the eastern part of Jilin Province, at the western foot of Changbai Mountain and by the Songhua Lake. It is situated at the middle node of the Changjitu Development and Opening up Pilot Zone, covering an area of 6,429 square kilometers. It has jurisdiction over 8 towns, 2 townships, 7 streets, and 1 provincial-level development zone, with a total population of 440,000, including 270,000 agricultural population and 113,000 hectares of arable land. Jiaohe has won more than 10 national honorary titles, including China's Excellent Tourism City, National Cultural Advanced City, National Science Popularization Demonstration City, Top 10 National Edible Fungi Excellent Bases City, National E-commerce into Rural Comprehensive Demonstration County, National Leisure Agriculture and Rural Tourism Demonstration County, and National Traditional Chinese Medicine Advanced County.

The planned area of Jilin Jiaohe Economic Development Zone is 21.77 square kilometers, with two industrial parks: Jiaohe Park and Tiangang Park. The park has a scientific planning, complete infrastructure, sufficient land reserves, favorable investment policies, and continuous industrial agglomeration. Its comprehensive strength has been increasing year by year, and it can carry projects to land at any time, providing broad development opportunities for industrial transfer and enterprise expansion.

2.3 Contact method

Postal Code: 132500

Contact person: Wu Han

Tel: +86-432-67250237  

+86-15948553866

E-mail: jljhjhj@163.com   

Contact information of the city (state) where the project is located:

Contact unit: Investment Promotion Service Center of Jilin Cooperation and Exchange Office

Contact person: Wang Yanchao

Tel:+86-15843218881