Agricultural Product


1 Introduction to the Project
1.1 Project Background
1.1.1 Introduction to the Product
Grape seed oil is refined from the grape seed by way of the most advanced cold pressing method. It has natural non-toxic property, can prevent cardiovascular disease, lower cholesterol and blood pressure in human serum, and is a natural antioxidant. Liuhe County has a long history in mountain wine development. it owns the honor of "mountain grape industry business base", "national mountain grape production demonstration area", is honored as “Hometown of China Quality Mountain Wine”. Due to the rapid development of the wine industry, grape seed resource is rich.
Grape is one of the world's widely cultivated fruits. According to statistics, the world's annual output of grape is about 70 million tons. The annual output of grape in China is about 1.4 million tons, and it also increases every year, of which approximately 80% is used for brewing wine, 7% for the processing of grape juice and other products, and 13% used for human consumption.Annually, ten thousands of tons of grape pomace are produced. The by-products in wine brewing or fruit juice processing are mainly grape skin and grape seed, both making up about 20% of fresh fruit, but most companies generally discard the skin and seed or ferment it for being used as fertilizer. This approach not only causes environmental pollution, but also is a waste of resources. Therefore, the study of the utilization of grape processing byproducts has very important significance. It can avoid environmental pollution, but also improve economic efficiency, turning waste into treasure. The study on the comprehensive utilization of grape processing byproducts is roughly as follows: the use of grape seed. Grape seed oil exploitation grape pomace is dried and sieved, and is divided into grape skin and grape seed two parts. The oil content in grape seed is rich, about 14 % to 18%. After grape seed is squeezed or leached in solution, grape seed oil is obtained. Pure grape seed oil is light yellow-green color, and it is a kind of cooking oil with good health function.
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
Since 2015, the edible oil market at home and abroad has strong demand for grape seed oil for seven consecutive years, and the sales have increased year by year. The price maintains high, the market potential is big, and development prospects are broad. In the international market, demand for grape seed oil is strong, and used amount is big. Its price has increased from 17.5 dollars / kg in 20015 to 23.8 dollars/kg in 2015. Grape seed oil is highly nutritious edible oil, and is favored by consumers in the international market. Its sales have increased with annual growth of 10%. Many countries have gradually replacing soybean oil with grape seed oil. Although the development of grape seed oil starts late in China, it develops rapidly, and the production has increased year by year. Our country is a large producer of grape, and with rich resources, the development of grape seed oil is a new selling point and hot spot on the edible oil market, it is also a solid economic growth source. Thus it has broad market prospect.
1.1.3 Technical Analysis
In the wine making process, about 4% grape seed of the processed grapes is produced. At present, a lot of manufacturers in China directly discharged it into the environment, which resulted in contamination. But in fact, the wastes can be recycled for the production of grape seed oil. Since grape seed oil is rich in vitamins, unsaturated fatty acids and other ingredients, it has unique nutrition and health effect to the body. It is the world's acclaimed high-end edible oil, the price is expensive, and so the development of grape seed oil is promising. Here is the technical process of using traditional method to produce grape seed oil:
1. Extraction of grape seed oil;
1.1 Process: screening of grape seed →breaking →softening →billet frying →prefabricated cake →squeezing →coarse filtering →crude oil
1.2 steps
(l) Screening: Screening by wind or human to make grape seed not contain impurities , pomace etc.
( 2 ) Breaking: use double roll crusher to crush all mature grape seeds in order to improve oil yield.
( 3 ) Softening : put grape seed into the softening pot, put about 15% soft water, warm to 65 ~ 70C, keep for 40 minutes to soften all the crushed grape seed.
( 4 ) Billet frying: move the softened grape seed to flat-bottomed wok for billet frying. In operation, the furnace must be uniform, make the material temperature reach 1100C, moisture 8% to 10%, for about two minutes. The fried grape seed must not be scorched, otherwise it will affect the quality of the finished grape seed oil.
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 Product Scheme and Scale
Construct plant, office building and above ground supporting facilities etc
1.2.2 Construction Content
New and rebuilt buildings with a total area of 60000m², new equipment of 20 (sets);
1.3 Total Investment and Funds Raising of the Project
1.3.1 Total Investment of the Project (detailed in table 1)
Table 1:Summary Table of Total Investment of Project   Unit: Ten Thousand Yuan
 
Serial No.    Name of Expense    Investment Amount    Percentage to Total Investment (%)    Remarks      
1    Construction Investment    8300    83           
2    Interest Incurred in Construction Period    1000    10           
3    Working Capital    700    7          
4    Total Investment of Project(1+2+3)    10000    100.00          
1.3.2 Funds Raising (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    Construction Investment    8300    83      
1.2    Working Capital    700    7      
2    Raised Fund    2500    25      
2.1    Construction Investment    8300    83      
2.2    Working Capital    700    7      
3    Total Investment of Project    10000    100.00     
1.4 Financial Analysis and Social Evaluation
1.4.1 Main Financial Indicators
List of Main Indicators for Financial Benefits Forecast    Unit: Ten Thousand Yuan
 
Serial No.    Name    Unit    Indicator    Remarks      
1    Operating income    ten thousand yuan    12000    Normal year      
2    Total Profits    ten thousand yuan    4166.67    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    11269.95    After income tax      
5    Payoff Period of All Investment (after tax)    a    4.2     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
The two sides of Tong-Mei grade I highway.
1.8 The On-going Condition of Project
Land acquisition work is under process.
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
Fax:0435-7330711
Postal code:135300
E-mail:jllhjhj@163.com

Contact Methods of Project City (Prefecture) :
Contact Unit: Tonghua Economic and Technical Cooperation Bureau
Contact Person :Liu Daoguang
Tel:0435-3650996  18904359157 
E-mail: th3650957@126.com
Website:http://www.tonghua.gov.cn/


 

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