The China Food Industry Association has uncovered four predominant problems that are blocking the development of the country's grain and oil processing industry.

The lack of product variety is compounded by low technological levels and a low level of comprehensive contribution, say the association.

Furthermore, an impractical industrial layout of 5,400 grain mills, 1,800 flourmills and over 1,500 edible oil processors, is leading to only small-scale production. This could be overcome through the construction of several large processing factories in ports and larger scale cities, say experts.