Aginomoto Sector Develops Steadily
Year:2006 ISSUE:27
COLUMN:MARKET REPORT
Click:203    DateTime:Sep.26,2006
Aginomoto Sector Develops Steadily


Rapid growth of output

The total output of aginomoto in China was 1.36 million tons in
2005, an increase of 18.5% over 2004 and accounting for 75.6%
of the world total. There are more than 50 producers in China.
Twelve of the 22 producers included in the statistics of the
sector have a capacity of over 20 thousand t/a. The output in
Shandong province was 329 thousand tons in 2005, accounting for
24.2% of the total. The output proportion was 22.1% for Henan
province, 15.4% for Jiangsu province, 7.5% for Zhejiang province,
7.8% for Guangdong province, 5.3% for Fujian province and 8.0%
for Hebei province.
   With the application of new technologies and the upgrading
of the management level, the production cost in the aginomoto
sector has reduced drastically. For example, the average cost
was RMB11 165 per ton in 1992 but came down to RMB6 466.27 per
ton in 2005. The overall technical level in the aginomoto sector
is however still relatively low. The input in research and
development in producers only accounts for 3% - 5% of the sales
revenue. Most producers only produce one product variety and
lack the reserve of new technologies. In case of market
fluctuations, the economic performance in these producers would
have a serious downslide.

Hard task in environmental protection

Concentrated organic wastewater generated in the aginomoto
production is a high pollution source and producers should pay
great attention to its treatment. Although around 80% of
producers reach the discharge standard, there is a great gap with
the requirements of clean production and the task in wastewater
control is still hard. China has issued the "Law of the People's
Republic of China on the Promotion of Clean Production" and
corresponding policies and management methods. The overall
trend is that requirements on environmental control will be more
stringent. Producers should therefore highlight clean
production and comprehensive utilization in their production,
reduce consumption, save resources and improve economic
benefits and environment so as to ensure a sustained and sound
development of the aginomoto sector.