Reviewing the development of China’s food industry since 1996, market experts
are content that the objectives of the ninth Five-Year Plan (1996-2000) have been

Food production in China has grown to meet domestic demand in terms of quality,
variety, function, grade and packaging. The industry itself has grown an average
rate of 10.2% a year over the last decade, and the National Bureau of Statistics
have released statistics that show how food manufacturing has grown by a dramatic
14.4% over the last year. Processing meanwhile expanded by 0.76% faster than
the growth rate of the whole food industry.

Food still accounts for 40% of total Chinese consumption at present, and the
industry posted sales of 782,989bn yuan during 2000. 44% of this was derived
from processing, and 16.91% from manufacturing. Combining the two, sales reached
477,043bn yuan. Semi-finished products proved the most popular, while the industry’s
output of brand name products has also increased considerably.

For the future, the industry plans to generate 1.38 trillion yuan in output
value by 2005. This will represent 11% of the country’s GDP. Over the next five
years, the focus will be on developing the food processing industry, in particular
sugar processing, instant food, milk food and green food.