COFCO TUNHE Tomato Industry Introduction. August, 2007

Transcription

1 COFCO TUNHE Tomato Industry Introduction August, 2007

2 Contents COFCO TUNHE Profile COFCO TUNHE Tomato Industrial Management System COFCO TUNHE Tomato Industry International Cooperation China Tomato Processing & Consumption Tendency COFCO TUNHE Tomato Industry Development Strategy

3 COFCO Group Founded in 1952, COFCO is a leading grain, oils and foodstuffs import and export group and one of its largest food manufacturers in China. Main business includes agricultural products trade and processing; food brand consuming products, real estate and hotel, etc. Fortune magazine lists it as one of the world's top 500 enterprises since 1994.

4 COFCO TUNHE COFCO TUNHE has 34 agricultural production sub-companies, located at Xinjiang, Inner Mongolia, Gansu, Hebei and Shanxi. COFCO TUNHE is a well known tomato products producer and supplier in the world, and has an annual processing capacity of 500,000 M/T aseptic tomato paste, 53,000 M/T canned tomato paste, 3,000 M/T tomato powder and 10 M/T natural lycopene. The aseptic tomato paste products have been sold to more than 80 countries or regions, such as USA, Europe, CIS, Southeast Asia, Japan, Korea and Middle East etc. COFCO TUNHE is the largest beet sugar manufacturer and supplier in China with an annual capacity of manufacturing 470,000 M/T sugar, accounting for 36% of the total Chinese production. COFCO TUNHE is the largest apricot puree producer and supplier in China with an annul capacity of 14,200 M/T, accounting for 40% of Chinese export volume.

5 COFCO TUNHE Factory Layout Heilongjiang Xinjiang Tibet Tomato: 22 Factories Fruits: 3 Factories Sugar: 9 Factories Inner Mongolia Gansu Beijing Tianjin Ningxia Shanxi Shandong Qinghai Henian Shanxi Jiangsu Jilin Liaoning Anhui Shanghai Sichuan Hubei Zhejiang Jiangxi Hunan Guizhou Fujian Yunnang Taiwan Guangxi Guangdong Hainan Chongqing Hebei

6 COFCO TUNHE Tomato Industry Aseptic Tomato Paste Canned Tomato Products Tomato Powder Lycopene Annual capacity of 500,000 MT 20 processing factories Average annual growth rate of 11% in production and sales in recent 5 years Annual capacity of 53,000 MT Strong ability in R&D to meet customer individual demands Develop domestic market and set up our own brand Export mainly by OEM Annual capacity of 3,000 MT Low temperature spray drying technology Main customer are international renowned companies Annual capacity of 10 MT Solvent extraction method introduced Products mainly sold in domestic market; export began since 2006 with a quick growth

7 COFCO TUNHE Tomato Factories in Northern Xinjiang Changji(Y10) Manasi(Y35) Shihezi(Y15) Shawan(Y66) Kuitun(Y41) Wusu(Y19) Emin(Y40) Jimusar(Y60)

8 COFCO TUNHE Tomato Factories in Southern Xinjiang Bohu(Y46) Yanqi( Y88 ) Heshuo( Y99 ) Baicheng( Y39 )

9 COFCO TUNHE Tomato Factories in Inner Mongolia Hetao(F8) World Red(F9) Wuyuan(F6) Neimeng COFCO(F1 Hanghou(F10) Linhe(F40) Wulate(F39)

10 COFCO TUNHE Tomato Factories in Gansu and Other Regions 1 Zhangye(X3) Tomato Powder Langfang(Ketchup)

11 Percentage in Chinese Processing Tomato Production COFCO TUNHE accounts for almost half of total Chinese processing tomato production China COFCO TUNHE Percentage% 1000 M/T % % 44% 50% % 40% % % % % COFCO TUNHE s production is expected to be 50% of total Chinese processing tomato production in 2007 crop 1

12 1 Contents COFCO TUNHE Profile COFCO TUNHE Tomato Industrial Management System COFCO TUNHE Tomato Industry International Cooperation China Tomato Processing & Consumption Tendency COFCO TUNHE Tomato Industry Development Strategy

13 1 6S Management System Strategy Performance Assessment Budget 6S Management systems Achievement Evaluation Management Reporting Internal Auditing

14 1 Quality Management System Tomato Standard System, Food& pesticide Tomato, and Apricot Quality Documents Compilation Japanese Positive List System ISO9002:2000 HACCP IP ISO14001:2000 KOSHER HALAL UNILEVER, BRC, SGS, HEINZ Technique Criteria Certification Customer Approval

15 Pesticide Residue Control-Management & Product Traceability 1 Products (Batch No., Code, Production Date) Delivery Record Storage Record Inspection Record Inspection of Outer Packaging Inspection of Semi Finished Products Inspection of Finished Products Inspection of Raw Material Raw Material Record Production Record Unloading and Discharge of Raw Material Filler Workshop Sterilization Workshop Evaporation Workshop Breaking Workshop Maintenance and Check of Equipments

16 1 Pesticide Residue Control Flow Provide farmers with training Samples of soil and irrigation water inspected Collect all the information about pesticide in process of planting and raw materials receiving and establish information database Accurate record of raw material made when processing based on processing time, and region of production Pesticide and agricultural materials supplied uniformly Inspection Centre Purchase arrangement worked out f or the qualified raw material Samples of seedling in greenhouse inspected Samples of seedling in fields inspected before June Region for ineligible material labeled, and supply qualification of the farmer involved canceled Samples of raw material from each region inspected before June 20 Traceable record for farmer established

18 Cooperation with Heinz William R. Johnson, CEO of the U.S.A. Heinz visited China on Sep. 25, 2006, The picture above captured the cooperation between Heinz and COFCO (on the left, Liu Fuchun, CEO of COFCO) Cooperation project and achievements: 1. COFCO TUNHE and Heinz reached the agreement on tomato demonstration project on August 75.4 hectares of planting basis established in Hutubi county, seeds from Heinz introduced, guided by Heinz experts planting technique strictly, and picking machine used 2. Through the project, totally 5750 MT raw material were produced, on an average of 87 MT per hectare, 27 MT higher than the other planting regions. And the raw material met the Heinz s requirement on producing HB products with high bostwick 3. Productive efficiency improved and local tomato industry upgraded 1

19 1 Cooperation Project with Heinz Further cooperation with Heinz in 2007! Total planting area has been raised 5 times as against 2006! Three more planting bases established;! Comply with the Heinz s requirement on Planting Total planting area of Heinz variety reaches 482 hectares Location Delong Farm Jimusar Baicheng Qianqi, Inner Mongolia Total Area (hectares)

20 Cooperation Project with Nippon Del Monte Cooperating with Nippon Del Monte (NDM) on variety experiment to improve seed R&D and expedite steps of promotion Display of variety experiment Single plant s ripeness situation of NDM variety on Aug.16 Inspection of NDM Variety NDM expert inspects the plants Picking of NDM variety 2

21 Cooperation Project with Unilever Establish credible and traceable standard agriculture management system 1 To reference experience and agriculture managing mode from Unilever ooperation Purpose 2 To research a better planting and managing mode for Chinese tomato industry combining with the current situation of Chinese agriculture 3 To establish pesticide residue control system Greenhouse for transplanting 4 To adapt demand of market and to meet the requirement of food safety Crop growing situation in autumn chievements In 2006, 6 factories formally approved by international renowned customers: Y46, Y88, Y60, F8, F9 and Tomato Powder Company 2

23 After over 10 Year s Development, China Plays a More Important Role in World s Processing Tomato Industry Previous Production In World Main Productive Regions 1000 MT EU USA China 10,320 9,675 Increase Rate USA -0.5 % ,100 7,897 4,300 EU 0.8% 590 China 16% Source: Tomatoland 2

24 Tomato Industry Current Status in China Good natural environment; high lycopene; planting regions mainly located in Xinjiang and Inner Mongolia NO subsidy provided for tomato growers in China; affected by other crops, the cost of raw material continues to increase Industry concentration enhanced The supply of raw material obviously can not match the processing capacity of factories 2

25 Tomato Industry Development Trend in China 2 More attention paid to R&D of seeds and improvement of planting technique Quality of products continuously improved Scope enlarged and industry concentration enhanced

26 Processing Tomato Output Trend in China Chinese tomato industry has possessed a considerable processing capacity. In the next few years, China will pay more attention to improving quality of raw material instead of investment expansion. Amount of fresh tomato in China(1000MT) 4,400 4,300 5,000 5,800 6,000 6,500 7,000 1,579 1,000 2,300 2,800 2,

27 China Tomato Products Consumption Tendency 2 Tomato products in China mainly contains canned paste, sauce and juice, and the consumption increases 15% in average per year Tomato products consumption tendency(1000mt)

28 Development and Tendency of Tomato Products Consumption in China The fresh tomato consumption in China accounts for 25% of total global consumption, while consumption for tomato products per capita is less than 5 kg. Therefore, there is a huge room of development for the market of tomato products in China As the development of economy, improvement of living condition, young generation's change of consumption habit, and as well as popularization of western-style flavor, there is a huge development room for tomato products consumption in China. Consumption of Tomato Products Less than 5 Kg per capita China 23 Kg per capita Western Countries 2

29 Development and Tendency of Tomato Products Consumption in China 2 Huge development room remains in China. The enterprise actively develop high extra-value products, ketchup, sauce, and beverage, which suits Chinese consumer, relying on consolidating the production and sales of aseptic tomato paste

30 Development and Tendency of Tomato Products Consumption in China According to the current 15% growth rate, the estimated domestic consumption will reach 23,000 MT by Estimation of Tomato products consumption in China(1000 MT)

32 COFCO TUNHE Tomato Industry Strategy Positioning 3 Strategy Positioning Cost Leading, Market Segmentation To increase production by newly establishment, merger and acquisition, internal optimization; to exert structural cost advantages in Chinese industrial and implement low cost strategy in international markets; To compare with internal competitors, we take seed R&D and growing techniques as our strategic control point, set up agricultural demo bases and raw material traceability system to distance ourselves from competitors in high end markets.

33 3 How to Achieve the Strategy? To realize the strategy Main Strategic Process Raw Material Production Logistics Sales Cultivate fine seeds Improve planting mode Establish traceability system Optimize layout Lean management Strengthen quality control Guarantee smooth logistics Meet customers diversified demands Enhance cooperation with international renowned companies

34 COFCO TUNHE Tomato Industry Development Strategy 3 To offer green and nutritious food Development Strategy To become a reliable partner of international brand companies To deliver maximum value to our customers, shareholders and employees

35 THANKS 3