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Underwood Nut (Walnut) Deep Processing Project of Jilin City
2013/03/21     Source:

1 Introduction to the Project 

1.1 Project Background 

1.1.1 Product Introduction 

Relying on the rich pecan specialty resources on the black soil in Jilin area to produce different strains of pecan deep processing products, increase the value added of walnuts products, and meet the multiplied and diversified demand for the product on the market. The project has features of small investment, quick payoff, and high efficiency. As for production enterprises, the foreseeable economic benefits are good.  

1.1.2 Market Prospects 

More than 40 countries on the six continents around the world plant walnut, with total production reaching more than 1.1 billion kilograms, while walnut exporter country is not more than 10, and total exports account for only about 10% of the total output. U.S. is a big walnut exporter, but its export accounts for only about 30% of the total output, and more than 60% of products are sold within the country. 

In China, due to general improvement of walnut cultivation and management level, and because the new developed varieties begin to bear fruit, walnut yield grows fast, and in the late 20th century, the walnut production in China was more than 260 million kilograms, exceeding the United States, ranking first in the world. 

In the current times when beverage market is relatively mature, the plant protein drinks have far not reached the degree of competition in the market of carbonated soft drinks or tea drinks, but in the market of plant protein drinks, the major brands are completing the process of "occupying the market". With the gradual maturity of the Chinese consumer market and people, the cola soft drink as well as other drinks made of three shares of essences and one share of water will be gradually given up by consumers (this may take some time, but the trend will not change), while those with real nutritional value will be gradually favored by consumers in the future, such as pure juice drinks, milk drinks, vitamin drinks, plant protein drinks, vegetable juice drinks, plants (cereals) drinks, energy drinks and so on. Because people gradually realize the harm of high calorie, high fat, high sugar to the human body, thus in the future, they will consciously choose low-calorie, low fat (those with losing-weight effect will be preferred), low (no) sugar and cholesterol-free drinks. With the continuous improvement of living standards of people, the gradual deepening of knowledge about the nutrition, health and medical effects of the walnut, the consumption of it in national and international markets will strengthen, and the market has been in short supply, the price is rising. The Food and Agriculture Organization of the United Nations forecasts that walnut demand will grow at an annual growth rate of 10%, and the economic value of walnut processing is obvious. In the future, walnut market will show a situation of supply falling short of demand. 

Based on the above analysis, the finished products of this project, walnut milk drinks and walnut seed, will have stable growth in the market demand. The market prospect is broad. 

1.1.3 Technical Analysis 

1. Walnut seed production process 

Pecans mainly use a combination of mechanical and manual peeling method, through careful selection, fine pecans will be selected. The specific process is as follows: 

Raw walnuts → peeling → specification screening  → steaming and boiling → hull fragmentation → high temperature baking → seasoning → low temperature drying → selection → packaging → finished products.

2. Walnut milk production process 

Walnut seed → pretreatment → stripping the seed skin → immersion → grinding → pulp residue separation →preparation → homogenizing → sterilization → bottling → sealing → secondary sterilization → cooling → test packaging → finished product 

3. Technical source

According to the requirements of process and scale of construction, walnut milk production line plans to introduce PET aseptic cold bottling production line from German Krones Company. This production line is currently the world's most advanced bottling line, and advanced formula will also be introduced. 

1.1.4 Advantageous Conditions of Project Construction 

1. Resource conditions  

The project area is the major producing area of specialty pecan of Jilin. The climate and soil conditions bring about rich pecan production, and raw material resources are abundant.  

2. Policy supporting conditions  

The project area – Sino-Singapore Food Zone, as the experimental area of the national strategy Chang-Ji-Tu development and opening up pilot area, is encouraged to carry on trial practice in the aspect of structure, mechanism, science and technology, and is given policy support in respect of taxation, funding, which provides strong policy guarantee for the settled enterprises, and builds a platform conducive to enterprise development. Each level of government in the cooperated food zone attaches great importance to the project of cooperated food zone, and has elevated the project to the strategic height of concerning the food reputation of the country and regards it as a top priority for integrated scheduling of various departments. All these have created favorable conditions for the smooth implementation of the project, and the basic conditions for project organization and implementation are equipped.  

3. Technical conditions  

The domestic walnut deep-processing technology is mature. The project will adopt advanced, reliable and stable production technology, thus product quality is assured. 

4. Policy, social and public facilities etc. environment conditions  

The project construction area has obvious regional advantages, convenient transportation, and complete infrastructure, with good external conditions for the project construction. 

1.2 Content and Scale of Project Construction 

1.2.1 Product Scheme and Scale 

Annual output of 1,000 tons of walnut seed (that is, 5 million cans) and an annual output of 7,200 tons of walnut milk (30 million cans) 

  

  

Table of Product Scheme 

No. 

Product name 

Packaging spec. 

Unit  

Annual output 

Remarks  

1 

Walnut seed 

200g 

Ton 

1000 

  

2 

Walnut milk 

240ml 

Ton  

7200 

  

1.2.2 Construction Content 

The project will cover an area of 12,000 square meters; it will build integrated processing plant, warehouse and ancillary works.  

1.3 Total Investment and Funds Raising Plan of the Project 

1.3.1 Total Investment (See Table 1 for details) 

Total investment of this project is RMB71.64 million, including the construction investment of 59.5047 million yuan and current funds of 12.1364 million yuan.  

Table 1: Summary Table of the Total Investment of the Project 

Unit: 10 thousand yuan 

No. 

Name of expenses 

Amount of investment 

Proportion 

Remarks 

1 

Construction investment 

5950.47 

83.06 

  

1.1 

Building engineering investment 

952.94 

  

  

1.2 

Equipment purchase investment 

3272.00 

  

  

1.3 

Installation engineering investment 

534.00 

  

  

1.4 

Other expenses of project construction 

649.98 

  

  

1.5 

Basic contingency fund 

540.95 

  

  

2 

Interest in the construction period 

0 

0 

Not temporarily considered 

3 

Current fund 

1213.64 

16.94 

  

  

Total project investment (1+2+3) 

7164 

100 

  

Note: “10 thousand yuan” in the table refers to RMB.  

1.3.2 Funds Raising 

The investor of self-provided fund is the construction unit. The investment method is cash investment, with amount of 71.6411 million yuan. The self-provided capital will be invested annually according to funding schedule. 

1.4 Forecast of Economic and Social Benefits 

1.4.1 Major Indexes for Forecast of Economic Benefitsdetailed in Table 2 

 

1.4.2 Analysis of Social Benefits 

After the implementation of the project, it will not only give full play to local resources, but also make the farmers fully enjoy the high added value of agricultural and sideline products after processing, and effectively improve the income of farmers, benefit income from local agriculture, benefit local people, thus it has good social benefits. 

1.5 Cooperative Ways of the Project 

Sole proprietorship, joint venture, or cooperation.  

1.6 What to be Invested by Foreign Party 

Capital. Other method can be talked face to face. 

1.7 Construction Site of the Project 

Jilin (China-Singapore) Food zone of Chaluhe Town, Yongji County, Jilin Province 

1.8 The On-going Condition of Project 

The project feasibility study report has been compiled, and currently, external introduction and promotion is being carried on. 

2 Introduction to Partner 

2.1 Basic Conditions 

Name of development zone: Jilin (China-Singapore) Food zone 

Address of development zone: Chaluhe Town, Yongji County, Jilin Province 

Legal representative: Li Changshan 

2.2 Overview  

In October 2008, in the Seventh Asia-Europe Summit, from the strategic perspective of food quality and safety, and security of supply of their respective countries, China and Singapore reached a consensus on jointly building a food district project. Since the implementation of the project, under the strong promotion of the Chinese National Development and Reform Commission, Ministry of Commerce, Ministry of Agriculture, Ministry of Foreign Affairs etc. ministries, and Jilin Provincial Government, the municipal government and the Singapore National Development Ministry, Trade and Industry Ministry, Agri-Food and Veterinary Authority, International Enterprise Development Council, Embassy in China etc. and other government departments, as well as Singapore Xinxiang Group, Star Bridge International, Yulang International, Xinke, Keppel Logistics, Food Manufacturers' Association, International Food Group etc. strong enterprises, China and Singapore carried on frequent communication, with more than one hundred times’ mutual visit, and the food zone has achieved positive results. Jilin (China - Singapore) food zone is located in central Jilin Province, Yongji County. It is 40 kilometers from Changchun City in the west, 40 kilometers from Jilin City in the east. It is the hinterland of Chang-Ji-Tu development and opening up pilot area, and importance node of the third Eurasia Bridge. In the food zone, the 10,000 hectares of rice base is the green industry and technology demonstration park recognized by the United Nations, national level green rice demonstration zone, the green food raw materials standardization base recognized by the Ministry of Agriculture, and the special food base of the central authorities. The food zone has vast good organic soil, and it is located in World Golden Corn Belt. The region has more than a thousand species of wild plants and animals resources available for large scale development and utilization. Around the park, there are more than 50 research institutions, and reserve of high-tech human resources is rich, which can fully meet the development need of the food zone. The 1 million head pig industrialized project invested by Singapore Food Industry Private Ltd. and Taiwan Dacheng (Asia) Company, Beijing Ershang Group Capital Food Industrial Park Project and Beijijng Yinnuoke Health Products Processing Project has formally settled in the park. The food zone will be established as the internationally first-class case health food production demo zone, modern agriculture development demo zone, “sanhua” coordination demo zone, Chang-Ji-Tu development and opening up strategic pilot demonstration area. Ultimately, it will form a modern livable city with output value of 100 billion yuan and a population of 300,000. For the settled enterprise, it will practice favorable policies on “one discussion for one matter” in the aspects of land and tax.  

Director of the administration committee is Li Changshan, once the magistrate of Yongji County, and county secretary of Yongji County.  

2.3 Contact Method 

Contact PersonYang Dongbo  

Tel0432-6808572813844254999 

Fax0432-64118432 

Emailspqjhj@126.com 

Postal Code132214  

Contact Method of the Economic Cooperation Bureau of the City (Prefecture) of the Project 

Contact Persons: Wei Xiaoli, Liu Aiguo 

Tel: 0432-62026489 

E-mail: proinvest@126.com 

Website: www.jlszsw.gov.cn 

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