Abstract:With the continuous development of the national economy in mainland China, poultry breeding, egg processing industry and its technology have achieved corresponding development, and the proportion of fresh egg processing is also increasing year by year, which further promotes the development of egg processing industry. The increase in market consumption has increased the processing output of egg liquid, egg powder and other products in the mainland, and the processing technology has been continuously improved, in addition to the introduction of some egg product processing equipment, some domestic manufacturers have also developed a series of new equipment for the needs of Chinese egg processing, in order to produce egg products that meet higher and higher standards. In 2023, the egg consumption of the egg processing industry in mainland China will be about 4.35 million tons, accounting for 12.25% of the total poultry egg consumption in mainland China.
1. Definitions and Classification
Egg processing refers to the processing of eggs, duck eggs, quail eggs or other poultry eggs as raw materials to make egg products. According to different product types, the processed egg products mainly include traditional egg products and modern egg products. Among them, traditional egg products have a history of thousands of years in China, mainly including preserved eggs, Songhua eggs, salted eggs, marinated eggs, trough eggs (pickled on sake lees), drunken eggs (pickled with wine) and other types. Modern egg products can be divided into egg liquid, egg powder, egg drinks, functional extracts and other categories in terms of morphology.
Second, industry policies
1. Competent authorities and regulatory system
The relevant departments of the State Council, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the State Administration for Industry and Commerce, the Ministry of Agriculture and Rural Affairs, and the State Administration for Market Regulation are the competent authorities for the egg product processing industry. The relevant departments of the State Council shall, within the scope of their respective duties, be responsible for health supervision, quality supervision and other related management work. The National Development and Reform Commission (NDRC) is responsible for the research and formulation of industrial policies, policy guidance, and project approval. The Ministry of Industry and Information Technology is responsible for formulating and implementing industry plans, industrial policies and standards, monitoring the daily operation of the industry, and is responsible for the formulation and organization of long-term plans, policies and standards in the industry, and guiding the development of the industry. The Ministry of Rural Agriculture coordinates the study and organization of the implementation of the development strategy, medium- and long-term planning, and major policies for the "three rural" work; organizes the drafting of draft laws and regulations related to agriculture and rural areas, formulates departmental rules, and guides comprehensive agricultural law enforcement; and participates in the formulation of policies related to agriculture, such as taxation, pricing, collection and storage, finance and insurance, and import and export. The State Administration for Market Regulation is responsible for the comprehensive supervision and management of the market, drafting relevant laws and regulations for market supervision and management, formulating relevant rules, policies and standards, organizing the implementation of the strategy of strengthening the country with quality, food safety strategy and standardization strategy, formulating and organizing the implementation of relevant plans, regulating and maintaining market order, and creating a market environment of honesty and trustworthiness and fair competition.
2. Industry-related policies
Food safety is directly related to the health of the general public. In recent years, the state has paid more attention to the construction of food safety, and has issued a series of laws, regulations and industrial policies such as the Regulations on the Supervision and Administration of the Main Responsibility of Enterprises for Implementing Food Safety and the Interim Measures for the Supervision and Administration of Food-related Product Quality and Safety to regulate the production and operation activities of food production enterprises. The increasingly strict and perfect system of food safety laws and regulations has standardized the production and operation activities of the industry, and has also played a positive guiding role in the development of the industry, promoting the development of the industry to intensive, standardized and large-scale. In addition, the processing of agricultural products under egg processing is strongly supported by the national and local governments. In 2024, the No. 1 document of the central government clearly proposes to "promote the coordinated development of agricultural product production, primary processing and intensive processing, promote the transformation and value-added of nearby places, promote the transformation and upgrading of agricultural product processing facilities, support the construction of regional primary processing facilities such as pre-cooling and drying, storage and preservation, and fresh-cut packaging, and develop intelligent, clean and intensive processing; and support the construction of processing industrial parks in the main producing areas of grain and important agricultural products". Local governments such as Heilongjiang, Chongqing, and Inner Mongolia have also introduced policies to support the development of agricultural product processing industry.
Third, the development process
The mainland has a long history of egg processing, not only the birthplace of traditional duck egg products represented by preserved eggs and salted duck eggs and traditional egg products represented by braised eggs and tea eggs, but also egg powder and ice egg products once played a pivotal role in international trade. Traditional egg products have a history of hundreds to thousands of years, but before 2000, they were still basically in the state of workshop production, and the process technology is more derived from the experience passed down from generation to generation. Since the reform and opening up, with the substantial improvement of national food safety awareness and the development needs of the central kitchen processing mode of the baking industry, the modern egg product industry has continued to grow and develop. Before 1990, the domestic egg powder production enterprises were mainly Haichuan Egg Factory in Bozhou City, Anhui Province. From 1990 to 2000, Dalian Lvxue Egg Development Co., Ltd. and Shanghai Hunan Egg Co., Ltd. were established successively, and also began to engage in the production and sales of egg powder, liquid eggs, lysozyme and other products. On January 18, 2004, Suzhou Oufu Egg Industry Co., Ltd. was established, Suzhou Oufu is the first enterprise specializing in the production of pasteurized liquid eggs in China. Subsequently, other companies continued to follow up, and the types of modern egg products such as liquid eggs, egg powder, lysozyme, and immunoglobulin continued to be enriched, and the production scale continued to expand.
Fourth, industry barriers
1. Product quality and food safety barriers
The state attaches great importance to food safety supervision, and egg processing enterprises need to obtain relevant national production licenses before they can operate, and must accept continuous supervision and management and daily inspections. With the improvement of domestic food safety-related policies and regulations and the future food safety standard system, the quality threshold of egg products will be further improved. The product quality of the egg processing industry is affected by the quality control of raw material procurement, production process and warehousing and circulation, and it is difficult for smaller enterprises and new entrants in the industry to achieve higher quality standards in a short time. In addition, in view of the increasingly severe food safety situation in China in recent years, consumers have put forward higher requirements for product quality, and new entrants will face greater product quality and food safety barriers.
2. Brand barriers
With the improvement of residents' consumption level, people pay more and more attention to the quality and nutritional value of food. The leading companies in the industry are trusted by the market and consumers because of their high quality control standards, rich product portfolio, and distinctive products. At the same time, the leading enterprises in the industry have formed a high brand effect through years of operation, have a wide customer base, and have high customer stickiness, forming a certain brand barrier.
3. Supply chain barriers
Poultry disease is one of the bottlenecks restricting the development of poultry farming, and it is also a major risk for poultry farming, which in turn affects the stability of raw material supply in the egg processing industry. At the same time, the egg processing industry has high requirements for the quality of raw eggs, and has requirements for the purchased egg pesticide residues, drug residues and other indicators. Leading companies in the industry often establish long-term cooperative relationships with upstream suppliers, which can ensure a stable supply of raw materials while ensuring the quality of raw materials. Therefore, industry leaders often establish a mature supply chain management system with egg suppliers, forming supply chain barriers.
4. Technical barriers
The new egg processing industry has higher requirements for professional talents, professional knowledge, and industry experience, and requires forward-looking prediction of industry and product development trends. However, due to the fact that the new egg processing is an emerging industry, there are very few talents with many years of rich experience in the industry, and talent reserve is one of the main barriers faced by new entrants in the industry.
5. Financial barriers
Egg processing enterprises need to invest a lot of money in plant construction, procurement of advanced production equipment and R&D equipment, product and technology research and development, etc., in order to maintain the advanced nature of products and ensure the stability of quality. In addition, because raw materials account for a relatively large proportion of the main business cost composition of the egg processing industry, its procurement and operating turnover need to occupy more working capital. As a result, new entrants face high financial barriers.
Fifth, the industrial chain
1. Analysis of the industry chain
The egg processing industry belongs to the deep processing industry of agricultural products, and its upstream industry is poultry breeding, which supplies eggs, duck eggs, pigeon eggs, quail eggs and other products for the egg processing industry; the midstream is the egg processing industry; and the downstream industries include food processing industry, catering industry, and end consumers. The mainland is the world's largest producer of poultry eggs, with an output of 35.63 million tons of poultry eggs in 2023. The demand of the downstream industry is affected by the macroeconomic prosperity index, urbanization rate, disposable income, warehousing and logistics transportation efficiency, consumption habits and other factors, with the further improvement of the level of economic development and the increasing attention of consumers to the importance of food safety, the demand for egg products in the downstream industry is expected to continue to increase. The egg processing industry is an important sub-industry of the entire egg industry, and its importance in the entire industrial chain is increasing.
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