China’s food and beverage industry maintained its strong growth in the first quarter of 2006, with output value rising by 25%.
Official statistics reveal that state-owned and other food and beverage companies with annual sales of over CNY5m generated a total industrial output value of CNY538.71bn (US$67.2bn) in the first quarter, up by 24.9% from the corresponding period last year.
In 2005, the industry’s total industrial output value increased by 26.85%, while the industry’s profit in 2005 totalled CNY123.47bn, up by 30% from 2004.
Wang Wenzhe, chairman of the China Food Industry Association, said that competition was now fierce in some sectors and that further mergers, acquisitions and restructuring were unavoidable, with the dairy and brewing sectors among the most likely to be affected.