Food Processing Machinery Market in China (2) - flour processing
Regarding flour processing equipment, at the end of 1998, China had a production capacity of 50t/24h ~ 1200t/24h equipment. This included large, medium and small processing enterprises in nearly all types of flour, they produced 50t/24h using about 40,000 small units , the annual processing capacity was 273.1 million tons.
Currently the vast rural areas still mainly use small flour processing units, so the small holdings and production units have accounted for a large proportion of the current domestic production where these small units have been able to meet the needs of the vast rural market. However, with growing economic development, people's living standards improve, and the demand for high-grade flour has increased. Because of this rapid growth, the small milling machines have been unable to meet the requirements. Throughout the past decade, there was little change in aggregate demand of flour, but with the growing demand for high quality flour, the standard powder production has dropped to below 20%. Currently, there is an overcapacity in flour processing enterprises the actual processing capacity for flour yields is less than 40%. The expert pointed out that the flour business has obtained certain economic benefits, technology and equipment to respond to technological innovation, and this has improved product standards. This has allowed the flour processing industry to put forward new requirements.
China's rural area is the biggest market, and therefore between 2000 and 2005, the cost effective use of small scale milling machines was quite popular in the market.
Government estimates, between 2000 and 2005, the demand of combined flour processing equipment is around 3000 units, and the demand for flour milling machines is 20k-30k.