Agricultural Product

1 Introduction to the Project
1.1 Project Background
1.1.1 Overview of the Project
In recent years, China's beverage industry is moving in the direction of "natural, nutrition, nature. Due to the rapid development of grape juice beverage, its market share in beverage varieties has risen to the third place. However, per capita consumption of juice beverage is only 1.3 kg, while the world average per capita consumption is 10 kg, and consumption is up to 40 kg in developed countries in Europe and America. Grape juice beverage industry is a sunrise industry. With the continuous improvement of living standards of the mass and diversified consumption tastes, grape juice drinks with delicious taste and rich nutrition will be increasingly favored by consumers. We can predict there will be some growth for the grape juice beverage. The growing demand for healthy nutrition drinks in the developed countries and the huge potential consumption market in developing countries will greatly stimulate the growth of consumption of bottled grape juice.
1.1.2 Market Prospects
(1)Current development situation abroad
Large-scale developments of wineries are things of the past century, and now wineries have been around the world on five continents. The wine-producing country is no longer confined to Western Europe, the Americas, Oceania, Africa and Asia also has some wine production rising powers. International Organization of Vine and Wine OIV Chairman Jose (Dutruc) studies suggest that the international wine market will have an increasingly fierce price competition, especially in medium and high-end wines, so it is necessary to curb the decline in traditional consuming countries and to support the amount of alcohol consumption in other countries. As an aesthetic part of the global food, culture, and environmental action, the wine producing country should integrate resources and unified communications strategy; Japanese food expert Hamano Kyrgyzstan shows that Japan's domestic wine import growth and overheating wine wave is currently facing a intemperate period and under the current context of globalization of the market economy, producing wines that  have better quality and taste than imported products, becomes the key to the survival for the Japanese domestic wineries; German expert of wine industry associations come to a conclusion through a lot of investigations that in the past 20 years, Germany has an upward trend in wine production and in order to be able to stand in a dominant position in international competition, the German wine producers follow the basic principles“ low-yield, high-quality”, sophisticated and diversified to achieve production, spreading to the world of wine and wine manufacturing technique naturally and environmentally; According to a research report puts forward by Vertumne International & Associates Company to the famous wine exhibition organization vinExpo, global wine growing area is stabilizing and wineries production and consumption will continue to grow. With 115,000 hm2 (hectares) of vineyards, 12 500 wineries and more than 400 wine distributor, there is an annual production about 720 million bottles of wine and an annual output value of 20 billion francs. These alarming data come from France's largest grape and wine region of Bordeaux. There is no doubt that Bordeaux is the world's most famous grape and wine regions and although there is a growing number of emerging areas, the French Bordeaux grape and wine is still the world's most classic template not only because she gave birth to the French wine culture, but also changed the drinking habits of many countries. Large-scale development of wineries are things of the past century, and now wineries have been around the world on five continents, the wine-producing country is no longer confined to Western Europe, the Americas, Oceania, Africa and Asia also has some wine production rising countries.
(2)The current situation of Chinese wine industry and development direction
In recent years, Chinese wine industry in production, product structure, product quality, production technology, technical equipment and product brands have undergone a fundamental change. Learned from the China Alcoholic Drinks Industry Association, by 2015, Chinese wine production will reach 0.8 million tons, maintaining an average annual growth rate of around 15%. The fifteen planning of Chinese wine industry and the planning of 2015 has developed specific goals on the total amount of planned and structured development of the industry total, the planned production increase of 50 thousand tons per year. Chinese wine in the past was mainly liqueur with low juice content. After adjustment of product structure in recent years, China has formed a whole juice wine-based product structure, in which dry, semi-dry wines accounted for the total 50% -60%. Increasingly rich variety of high-end products, in addition to the existing internationally recognized high-end varieties of wine, the high-end sparkling wine, wine estates have also put on the market. This shows that China's wine industry on product structure adjustment has entered into a healthy and normal development stage. By the statistics, 100 percent in 2015 with dry wine accounted for 50-60% of total production which has gradually improved the product quality. Wine industry technology and equipment have made great progress with the increasing international exchanges. Some of the key equipments of large domestic wineries such as stem crusher, sterilizing filter, tartar processor, and canning equipment were imported from abroad; Brewing technique also actively adopted foreign advanced brewing technology and combined with China's specific conditions which improved our wine making techniques. Currently, seven companies have reached more than ten thousand tons of wine production and 12 enterprises sales’ income is more than 0.1 billion. The total pre-tax profits of Yantai Changyu, Dynasty, Tianjin, Yantai Great Wall, Gaza City Wall, the Great Wall of China, Yantai and Qingdao, East China, these seven companies accounted for 87.66 percent of the industry. There is high concentration of the industry and company of a certain size. The wine industry has always been supported by the national industrial policy, in particular the implementation of the national wine industry "four transformations", that is high alcohol wine transition to a low degree, distilled liquor to fight hair turning entire areas of product promotion branding, in the previous successful operation of the "world's seven Helan Mountain • Grape Coast", the marketing of Helan Mountain will move in depth areas. Yinchuan municipal government attaches great importance to the grape and wine industry, as one of its four pillar industries in Yinchuan. The city government adopts a flexible, pragmatic and effective measures in the investment policy, park construction, technical support, information services, and other aspects of administrative examination and approval, attracting a group like Yantai Changyu Pioneer Wine Co., Ltd., Tianjin Sino-French joint venture Dynasty Winery Ltd. Yuma, Ningxia COFCO Great Wall Wine Co., Ltd. Yinchuan desert round wine industry, Ningxia Yong Ning Yuquan wineries, Ningxia Helan Mountain wineries, wine fermentation and wine production base stations, Helan Mountain Municipal give some preferential policies in taxation base for the establishment and development of the grape and businesses. Currently, Helan Mountain grape production advantages are clear with strong atmosphere of wine industry and a future Chinese wine city is quietly rising.
(3)Future market analysis
The 21st century is the golden age for the development of grapes and grape beverage. Grape juice beverage applies advanced technology for the production of drinks with better taste, better quality, and updated form. Grape juice is rich in vitamins and trace elements, can replace sodium ions in human blood, regulate the body's potassium and sodium balance, and has the cardiovascular protective effect. It is much respected and loved by consumers.
In addition, the authentic exotic culture of wine is an important factor for attracting consumer spending and boosting market supply. For example, on the Guangzhou International Wine Exhibition and the Third World Wine Festival held at the end of November 2008, many consumers know that in addition to the traditional wine producing countries such as France, Australia and Italy, Romania, Hungary, South Africa, Portugal, Spain, Greece, Argentina, New Zealand, Chile etc. countries also produce abundant wine products, which is a good demonstration.
In the first half of 2014, the national soft drink production reached 59,929,600 tons, an increase of 9.43%, while fruit and vegetable production reached 3,000,000 tons, accounting for only 5% of the production of soft drinks. With the improvement of modern living standards, people demand fruits diversification and convenience of eating. Grapes have many species and rich flavor. Processing of grape juice must have broader prospects.
1.1.3 Technical Analysis
Technical aspects: Carrying out comprehensive cooperation in mountain grape breeding, cultivation and management and mountain wine production techniques, technology, etc. with Chinese Academy of Agricultural Sciences Zuo Family Institute of Specialty Products, Northwest Agriculture and Forestry University Institute of Wine etc. universities, colleges and scientific research institutions, as well as LiuHe County Wine Research and Development Center, which provides the scientific and technological support for the industrial development.
1.1.4 Advantageous Conditions of Project Construction
(1)Policy advantage
According to the amount of investment, it enjoys related preferential policies of “several measures of Liuhe County People's Government on encouraging investment” (Liu Zheng Fa [2010] No. 23).
(2)Regional advantage
Liuhe County is located in the Mid Changbai Mountain, its unique geography, soil and climatic conditions are suitable for the growth of Vitis, especially for ice grape cultivation. The whole county which covers 3,348 square kilometers and a population of 380,000 has jurisdiction over 12 towns and 10 rural county areas. The County People's Government is located in the Liuhe Town. Liuhe County is located in the southeastern of Jilin, north of Tonghua. Located in east with longitude 125 ° 17 '~ 126 ° 35', latitude 41 ° 54 '~ 42 ° 35', it borders Huinan County in the northeast, Baishan City Badaojiang District, Jiangyuan County and Jingyu County in the east, Meihekou City in the north, Tonghua County in the south, and is adjacent to Qingyuan County and Xinbin County in the west. The county center Liuhe Town is the political, economic and cultural center.
(3)Technical advantage
Carrying out comprehensive cooperation in mountain grape breeding, cultivation and management and mountain wine production techniques, technology, etc. with Institute of Chinese academy of agricultural sciences' left home products, the northwest agriculture and forestry university of science and technology institute of wine, scientific research institution, LiuHe County wine research and development center etc. provided the scientific and technological support for the industrial development.
(4)The advantage of the industrial base
With adequate supply of electricity, high water quality, and convenient road and rail transportation, Liuhe County has now become the "mountain grape industry business base", "national mountain grape production demonstration area", "national grape processing technology research and development branch center" and “Hometown of China Quality Mountain Wine”. There is nearly 30,000 mu mountain grape planting base in the whole county, 25 mountain-grape-wine companies have got QS certification, industry production capacity is approximately 110 thousand liters.
1.2 Content and Scale of Project Construction
1.2.1 Construction scale
Annual production capacity of 20000 tons of quality additive-free green grape juice
1.2.2 Construction contents
The project occupies an area of 30000 square meters, and the constructin area is 25000 square meters. It will mainly building workshops and supporting structures, and purchase 250 sets of equipment.
1.3 Total Investment and Financing
1.3.1 The total project investment (detailed in Table 1)
Table 1:   Summary Table of the Total Investment      Unit: ten thousand yuan    
No.    Name of Expense    Investment Amount    Percentage to Total Investment %    Remarks      
1    Construction Investment    9500    79           
2    Interest Incurred in Construction Period    1500    12.5           
3    Working capital    1000    8.5          
    Total investment of project (1 +2 +3)    12000    100.00          
1.3.2 Financing (detailed in table 2)
Table 2:         List of Funds Raising              Unit: Ten Thousand Yuan
Serial No.    Classification and Source of Funds    Capital Amount    Percentage to Total Investment(%)      
1    Project Capital    8000    60      
1.1    Construction Investment    9500    79      
1.2    Working Capital    1000    8.5      
1.3    Interest incurred in construction period    1500    12.5      
2    Raised fund    4000    33      
2.1    Construction Investment    9500    79      
2.2    Working Capital    1000    8.5      
3    Total Investment of Project    12000    100.00     

1.4 Total Investment and Financing
1.4.1 The Total Project Investment
Table 3: List of Main Indicators for Economic Benefits Forecast
Unit: ten thousand yuan
Serial No.    Name    Unit    Indicator    Remarks      
1    Operating income    ten thousand yuan    16500    Normal year      
2    Total Profits    ten thousand yuan    5000    Normal year      
3    Financial Internal Rate of Return of All Investment    %    28    After income tax      
4    Financial Net Present Value(Ic=10%)    ten thousand yuan    10797.34    After income tax      
5    Payoff Period of All Investment (after tax)    a    4.5     Including construction period of one year     
1.4.2 Social Evaluation
1. After the implementation of the project, a lot of food processing raw materials and packaging materials are needed every year. It promotes the local transport, and also plays a relatively great role in local economic development, thus it has certain impact.
2. After the completion of the project, employment opportunities for local people have increased to improve the incomes of local people and improve the living standards of residents, which make a great contribution to raising the employment rate of society.
3. Implementation of the project can effectively promote the development of upstream and downstream enterprises and other related industries locally, thus contributing to the rapid development of the local economy.
1.5 Cooperation Method of Project
Joint venture. Other methods can be negotiated face to face.
1.6 What to be Invested by Foreign Party
Capital. Other methods can be negotiated face to face.
1.7 Construction Site of the Project
Liuhe County Caisheng Industrial Park
1.8 The On-going Condition of Project
Pre-project planning, land acquisition has been basically completed.
2、Introduction to Partner
2.1 Basic Conditions
2.1.1 Overview of Project Undertaker:
Project undertaker: Liuhe County Economic and Technical Cooperation Bureau of Jilin Province
Address: No.76 of Liuhe Street, Liuhe County, Jilin Province
Contact Person: Zhao Xiaohong  0435-7213303  13844556900
Postal code: 135300

Contact Methods of Project City (Prefecture) :
Contact Unit: Tonghua Economic and Technical Cooperation Bureau
Contact Person :Liu Daoguang
Tel:0435-3650996  18904359157 


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