Contents:

INTRODUCTION Report Coverage China’s Retail Statistics: A Cautionary Note The Problems With Chinese Retail Data? What Does All This Mean Practically? Figure A CHINA TOTAL & PER CAPITA RETAIL SALES COMPARED TO OTHER ASIAN COUNTRIES, 2005 Other Access Asia Reports of Possible Interest Glossary Free Monthly Online Newsletter and Editorials 1 CHINA’S SUGAR MARKET 1.1 Overview 1.2 China’s Total Food & Beverage Market 1.2.1 Total Food Market: Food & Non-food Sales Table 1.1 TOTAL CURRENT VALUE RETAIL SALES BY FOOD AND NON-FOOD, 2001-2007 1.2.2 Total Food Market: Food/Non-food Sales Split Table 1.2 % BREAKDOWN OF SALES BY FOOD AND NON-FOOD, 2001-2007 1.2.3 Total Food Market: Urban and Rural Split Table 1.3 TOTAL CURRENT VALUE RETAIL SALES BY FOOD & NON-FOOD, 2001-2007 1.2.4 Total Food Market: The Trends Figure 1.1: Total Volume Growth in Retail Sales of Selected Food Products in China, 2000-2006 Figure 1.2: Per Capita Volume & Growth of Retail Sales of Selected Food Products in China, 2000/2006 Table 1.4 CURRENT VALUE RETAIL FOOD SALES BY MAJOR PRODUCT CATEGORY, 2001-2007 1.2.5 Total Food Market: Urban Value Trends Table 1.5 CURRENT VALUE URBAN RETAIL FOOD SALES BY MAJOR PRODUCT CATEGORY, 2001-2007 1.2.6 Total Food Market: Rural Value Trends Table 1.6 CURRENT VALUE RURAL RETAIL FOOD SALES BY MAJOR PRODUCT CATEGORY, 2001-2007 1.3 China’s Sugar Market 1.3.1 Total Sugar Market: Sugar Consumption Table 1.7 TOTAL SUGAR CONSUMPTION, PRODUCTION, TRADE AND RETAIL SALES VOLUME & VALUE, 2001-2007 Table 1.8 % GROWTH IN TOTAL SUGAR CONSUMPTION, PRODUCTION, TRADE AND RETAIL SALES VOLUME & VALUE, 2001-2007 1.3.2 Total Sugar Market: F&B Sugar Consumption Table 1.9 TOTAL PRODUCTION OF PROCESSED FOODS CONTAINING SIGNIFICANT AMOUNTS OF ADDED SUGAR IN CHINA, JAN.-NOV. 2006 &-2007 1.3.3 Total Sugar Market: Per Capita Sugar Consumption Table 1.10 PER CAPITA SUGAR RETAIL SALES AND CONSUMPTION VOLUME & VALUE, 2001-2007 1.3.4 Total Market: The Retail Market Size Table 1.11 TIER-ONE CITIES STORE NUMBERS & TOTAL AND AVERAGE OUTLET RETAIL SALES BY STORE TYPE FOR CHAIN RETAILERS ABOVE OFFICIAL STATISTICS THRESHOLD, 2004-2006 Table 1.12 TOTAL RETAIL MARKET VALUE FOR SUGAR IN CHINA, 2001-2007 Table 1.13 TOTAL RETAIL MARKET VOLUME FOR SUGAR IN CHINA, 2001-2007 1.3.5 Total Market: Retail Food Market Significance Table 1.14 THE SUGAR RETAIL MARKET AS A PROPORTION OF TOTAL RETAIL FOOD SALES IN CHINA, 2001-2007 1.4 Regional Markets 1.4.1 Regional Markets: Provincial Values Table 1.15 VALUE OF SUGAR RETAIL MARKET BY PROVINCE IN CHINA, 2001-2007 1.4.2 Regional Markets: Value Market Growth & Breakdown Table 1.16 % BREAKDOWN & MARKET VALUE GROWTH OF SUGAR RETAIL MARKET BY PROVINCE IN CHINA, 2001-2007 1.4.3 Regional Markets: Volume Market Sizes Table 1.17 VOLUME OF SUGAR RETAIL MARKET BY PROVINCE IN CHINA, 2001-2007 1.4.4 Regional Markets: Volume Market Growth & Breakdown Table 1.18 % BREAKDOWN & MARKET VOLUME GROWTH OF SUGAR RETAIL MARKET BY PROVINCE IN CHINA, 2001-2007 1.4.5 Regional Markets: Per Capita Spending Table 1.19 PER CAPITA RETAIL SPENDING ON SUGAR BY PROVINCE IN CHINA, 2001-2007 1.4.6 Regional Markets: Per Capita Consumption Table 1.20 PER CAPITA RETAIL CONSUMPTION OF SUGAR BY PROVINCE IN CHINA, 2001-2007 1.5 Urban & Rural Sales of Sugar in China 1.5.1 Urban & Rural Market: Total Sales Table 1.21 THE RETAIL MARKET FOR SUGAR BY URBAN & RURAL SALES IN CHINA, 2001-2007 1.5.2 Urban & Rural Market: Growth Rates Table 1.22 GROWTH RATES FOR SUGAR BY URBAN & RURAL RETAIL MARKETS IN CHINA, 2001-2007 1.6 Market Shares 1.6.1 Market Shares: Retail Market Shares Table 1.23 LEADING SUGAR PROCESSORS RANKED BY REVENUES, 2003-2007 1.7 Prices 1.7.1 Prices: Retail Price Indices Table 1.24 AVERAGE INCOME ANNUAL GROWTH BY SECTOR, 2004–2007 Table 1.25 RETAIL PRICE INDICES BY BROAD SECTOR, 2000-2007* 1.7.2 Prices: Average Regional Unit Prices Table 1.26 AVERAGE RETAIL PRICES OF SUGAR BY PROVINCE, 2001-2007 1.7.3 Prices: Average Regional Unit Price Growth Table 1.27 % ANNUAL GROWTH OF AVERAGE RETAIL Prices OF SUGAR BY PROVINCE, 2001-2007 1.7.4 Prices: Selected Retail Prices Table 1.28 SELECTED RETAIL PRICES OF SUGAR, APRIL 2008 1.8 Outlook 1.8.1 Outlook: Forecast Trends 1.8.2 Outlook: Total Market Size In Value Terms Table 1.29 FORECAST TOTAL CONSUMPTION AND RETAIL SALES OF SUGAR BY VOLUME & VALUE, 2008-2012 1.8.4 Outlook: Total Per Capita Consumer Consumption Table 1.30 FORECAST PER CAPITA SUGAR VOLUME & VALUE CONSUMPTION AND RETAIL SALES IN CHINA, 2008-2012 1.9 Current Issues 1.9.1 Current Issues: Packaging: Dealing with massive amounts of waste 1.9.2 Current Issues: Fat Food: Facing an obesity epidemic 1.9.3 Current Issues: Dangerous Food: Eating poison 1.9.4 Current Issues: Going Green: The positive approach 1.9.5 Current Issues: Genetically Modified (GM) Food: The genie in the bottle 1.9.6 Current Issues: Vegetarianism: Consumers vote with their feet 1.9.7 Current Issues: Organic Farming 1.9.8 Current Issues: The Saccharine Market in China Table 1.31 CHINA’S SACCHARINE MARKET OUTPUT, SUPPLY & EXPORTS, 1999-2005 1.9.9 Current Issues: Molasses Production & Trade Table 1.32 MOLASSES PRODUCTION* & TRADE BY VOLUME, 1999-2005 1.9.10 Current Issues: Starch Sugar 2 MARKETING & DISTRIBUTION 2.1 Marketing & Advertising 2.2 Consumers 2.2.1 Consumer Profile: Broad Consumer Trends 2.2.2 Consumer Profile: Sugar Consumers Table 2.1 TOTAL VOLUME CONSUMPTION AND GROWTH IN HIGH-FAT & HIGH-SUGAR FOODS, 1996/2005 Table 2.2 PER CAPITA VOLUME CONSUMPTION AND GROWTH IN HIGH-FAT & HIGH-SUGAR FOODS, 1996/2005 2.3 Wholesale Distribution 2.4 Retail Distribution Table 2.5 % BREAKDOWN OF SUGAR SALES BY RETAIL OUTLET TYPE IN CHINA, 2001-2007 3 SOURCES OF SUPPLY 3.1 Sugar Industry 3.1.1 Sugar Industry: Total Industry Manufacturers & Revenue Table 3.1 TOTAL NUMBER OF SUGAR PROCESSORS AGAINST INDUSTRY REVENUES, 1996-2007 3.1.2 Sugar Industry: Total Industry Revenue & Profit Table 3.2 TOTAL SUGAR PROCESSING INDUSTRY REVENUE & PROFIT COMPARED, 1996-2007 Table 3.3 TOTAL SUGAR PROCESSING INDUSTRY REVENUE, PROFIT & OUTPUT VOLUME, 2001-2007 Table 3.4 AVERAGE SUGAR PROCESSING INDUSTRY REVENUE & PROFIT PER OUTPUT VOLUME, 2001-2007 3.1.3 Sugar Industry: Total Output Volume & Value Table 3.5 SUGAR BEET, CANE AND CENTRIFUGAL PRODUCTION VOLUME, VALUE & LOCAL PRODUCER PRICES IN CHINA, 2001-2006 3.1.4 Sugar Refining Industry: Regional Refiners Table 3.4 REGIONAL NUMBER OF CHINA’S SUGAR REFINERS, 2001-2006 3.1.5 Sugar Refining Industry: Major Cities of Production Table 1.5 LEADING CITY CENTRES OF PRODUCTION OF SUGAR IN CHINA, 2004 3.1.6 Sugar Refining Industry: Regional Employment Table 3.6 REGIONAL NUMBER OF EMPLOYEES AT CHINA’S SUGAR REFINERS, 2001-2006 Table 3.7 REGIONAL AVERAGE NUMBER OF EMPLOYEES AT CHINA’S SUGAR REFINERS, 2001-2006 3.1.7 Sugar Refining Industry: Regional Revenues Table 3.8 REGIONAL REVENUE OF CHINA’S SUGAR REFINERS, 2001-2006 Table 3.9 REGIONAL AVERAGE REVENUE OF CHINA’S SUGAR REFINERS, 2001-2006 3.1.8 Sugar Refining Industry: Regional Profits Table 3.10 REGIONAL PROFIT OF CHINA’S SUGAR REFINERS, 2001-2006 Table 3.11 REGIONAL AVERAGE PROFIT OF CHINA’S SUGAR REFINERS, 2001-2006 3.1.9 Sugar Refining Industry: Regional Profit Margin Table 3.12 REGIONAL AVERAGE PROFIT MARGIN OF CHINA’S SUGAR REFINERS, 2001-2006 3.1.10 Sugar Refining Industry: Regional Revenue and Profit Per Employee Table 3.13 REGIONAL AVERAGE REVENUE PER EMPLOYEE OF CHINA’S SUGAR REFINERS, 2001-2006 Table 3.14 REGIONAL AVERAGE PROFIT PER EMPLOYEE OF CHINA’S SUGAR REFINERS, 2001-2006 3.1.11 Sugar Refining Industry: Area of Crops Sown, Production and Stocks Chart 3.1 GUANGXI SUGAR ASSOCIATION SUGAR CROP GROWING AND SUGAR PRODUCTION STATISTICS FOR SEASON 2007/08 Table 3.15 AREA SEWN OF SUGAR CROPS IN CHINA, 2001-2006 Chart 3.2 CHINA SUGAR ASSOCIATION SUGAR PRODUCTION STATISTICS FOR SEASON 2007/08 Table 3.16 STOCK HELD AT YEAR END OF PROCESSED SUGAR IN CHINA, 1999-2006 3.1.12 Sugar Refining Industry: Wholesale Sugar Prices Table 3.17 AVERAGE ANNUAL WHOLESALE PRICES OF RAW SUGAR ON THE GUANGXI SUGAR EXCHANGE, 2001-18/04/08 3.2 Key Sugar Manufacturers 3.2.1 Key Sugar Manufacturers: Historical Key Manufacturer Statistics Table 3.18 SUMMARY STATISTICS OF CHINA’S LEADING SUGAR MANUFACTURERS, 2003/2004 3.2.2 Key Sugar Manufacturers: Recent Key Manufacturer Statistics Table 3.19 SUMMARY STATISTICS OF CHINA’S LISTED SUGAR MANUFACTURERS, 2005-2007 3.2.3 Key Sugar Manufacturers: Recent Key Manufacturer Sugar-only Statistics Table 3.20 COMBINED STATISTICS OF CHINA’S LISTED SUGAR MANUFACTURERS’ SUGAR-ONLY FINANCIAL RESULTS, 2005-2007 Chart 3.3 INDUSTRY SUGAR-ONLY REVENUE AND PROFIT SHARES FOR CHINA’S LISTED SUGAR MANUFACTURERS, 2005-2007 Table 3.21 SUMMARY STATISTICS OF CHINA’S LISTED SUGAR MANUFACTURERS’ SUGAR-ONLY FINANCIAL RESULTS, 2005-2007 3.3 Foreign Trade Legislation Table 3.22 CHINA TARIFF-RATE QUOTAS (TRQS) 3.4 Exports 3.3.1 Exports: Value Table 3.23 SUGAR EXPORT VALUE BY SECTOR, 1999-2005 Table 3.24 % BREAKDOWN OF SUGAR EXPORT VALUE BY SECTOR, 1999-2005 Table 3.25 % ANNUAL GROWTH OF SUGAR EXPORT VALUE BY SECTOR, 1999-2005 3.3.2 Exports: Volume Table 3.26 SUGAR EXPORT VOLUME BY SECTOR, 1999-2005 Table 3.27 % BREAKDOWN OF SUGAR EXPORT VOLUME BY SECTOR, 1999-2005 Table 3.28 % ANNUAL GROWTH OF SUGAR EXPORT VOLUME BY SECTOR, 1999-2005 Table 3.29 CHINA'S SUGAR EXPORTS BY DESTINATION, TRADE YEAR 2003/2004 3.5 Imports 3.4.1 Imports: Value Table 3.30 SUGAR IMPORT VALUE BY SECTOR, 1999-2005 Table 3.31 % BREAKDOWN OF SUGAR IMPORT VALUE BY SECTOR, 1999-2005 Table 3.32 % ANNUAL GROWTH OF SUGAR IMPORT VALUE BY SECTOR, 1999-2005 3.4.2 Imports: Volume Table 3.33 SUGAR IMPORT VOLUME BY SECTOR, 1999-2005 Table 3.34 % BREAKDOWN OF SUGAR IMPORT VOLUME BY SECTOR, 1999-2005 Table 3.35 % ANNUAL GROWTH OF SUGAR IMPORT VOLUME BY SECTOR, 1999-2005 Table 3.36 CHINA'S SUGAR IMPORTS BY ORIGIN - TRADE YEAR 2003/2004 4 SWOT ANALYSIS 4.1 Strengths 4.2 Weaknesses 4.3 Opportunities 4.4 Threats 5 COMPANY PROFILES Table 5.1 CHINA LISTED SUGAR PROCESSING COMPANIES SUGAR REVENUES AND PROFITS AS A % OF THEIR TOTAL COMPANY REVENUES AND PROFITS, 2005-2007 5.1 Baotou Huazi Industry Co., Ltd. 5.1.1 Baotou Huazi Industry: Company Details 5.1.2 Baotou Huazi Industry: Background 5.1.3 Baotou Huazi Industry: Financial Results Table 5.2 BAOTOU HUAZI INDUSTRY CO., LTD.: FINANCIAL RESULTS, 2001-2006 5.2 British Sugar (Overseas) Ltd. 5.2.1 British Sugar (Overseas): Company Details 5.2.2 British Sugar (Overseas): Company Background 5.2.3 British Sugar (Overseas): China Activities 5.3 Dongguan Dongtang Industry Group Company 5.3.1 Dongguan Dongtang Industry: Company Details 5.3.2 Dongguan Dongtang Industry: Financial Results Table 5.3 DONGGUAN DONGTANG INDUSTRY GROUP CO.: FINANCIAL RESULTS, 2002-2004 5.4 Guangxi Boqing Food Co., Ltd. 5.4.1 Guangxi Boqing Food: Company Details 5.4.2 Guangxi Boqing Food: Financial Results Table 5.4 GUANGXI BOQING FOOD CO., LTD.: FINANCIAL RESULTS, 2001-2004 5.5 Guangxi Fengtang Biochemistry Co., Ltd. 5.5.1 Guangxi Fengtang Biochemistry: Company Details 5.5.2 Guangxi Fengtang Biochemistry: Financial Results Table 5.5 GUANGXI FENGTANG BIOCHEMISTRY CO., LTD.: FINANCIAL RESULTS, 2001-2004 5.6 Guangxi Funan East Asia Sugar Co., Ltd. 5.6.1 Guangxi Funan East Asia Sugar: Company Details 5.6.2 Guangxi Funan East Asia Sugar: Financial Results Table 5.6 GUANGXI FUNAN EAST ASIA SUGAR CO., LTD.: FINANCIAL RESULTS, 2001-2004 5.7 Guangxi Guitang (Group) Co., Ltd. 5.7.1 Guangxi Guitang Group: Company Details 5.7.2 Guangxi Guitang Group: Company Background 5.7.3 Guangxi Guitang Group: Financial Results Table 5.7 GUANGXI GUITANG (GROUP) CO., LTD.: FINANCIAL RESULTS, 2004-2007 5.8 Inner Mongolia Zhengbei (Drambor) Food Co., Ltd. 5.8.1 Inner Mongolia Zhengbei (Drambor) Food: Company Details 5.8.2 Inner Mongolia Zhengbei (Drambor) Food: Company Background 5.9 Jiangmen Sugarcane Chemical Factory (Group) Co., Ltd. (Guangdong Ganhua) 5.9.1 Jiangmen Sugarcane Chemical Factory (Group): Company Details 5.9.2 Jiangmen Sugarcane Chemical Factory (Group): Company Background 5.9.3 Jiangmen Sugarcane Chemical Factory (Group): Financial Results Table 5.8 JIANGMEN SUGARCANE CHEMICAL FACTORY (GROUP) CO., LTD.: FINANCIAL RESULTS, 2004-2007 5.10 Nanning Sugar Industry Co., Ltd. 5.10.1 Nanning Sugar Industry: Company Details 5.10.2 Nanning Sugar Industry: Company Background 5.10.3 Nanning Sugar Industry: Financial Results Table 5.9 NANNING SUGAR INDUSTRY CO., LTD.: FINANCIAL RESULTS, 2004-2007 5.11 Taikoo Sugar Ltd 5.11.1 Taikoo Sugar: Company Details 5.11.2 Taikoo Sugar: Company Background 6 CONTACTS 6.1 Trade Organisations 6.1.1 China National Cereals, Oils & Foodstuffs Import & Export Corporation 6.1.2 All-China Federation of Industry & Commerce 6.1.3 China Sugar Manufacture Industry Association (China Sugar Association) 6.1.4 The Chinese Institute of Food Science and Technology 6.1.5 ChinaSugarMarket.com 6.1.6 World Sugar Research Organisation Limited (WSRO) 6.1.7 Beet and Sugar Industry Corporation 6.1.8 International Sugar Organisation 6.2 Government Departments 6.2.1 State Economic and Trade Commission – State Light Industry Bureau 6.2.2 China Food Additive Production & Application Industry Association 6.2.3 Ministry of Agriculture 6.2.4 Ministry of Light Industry Food Industry Bureau - Sugar Division 7 RELEVANT EXHIBITIONS & TRADE FAIRS 7.1 International Packing, Printing, Food Processing & Packaging & Plastic Machinery Fair (Hangzhou) 7.2 Tianjin Exhibition on Food Machinery & Packing 7.3 Trade Show of Machinery for Print, Packaging, Plastic Products & Food 7.4 Food Ingredients & Food Ingredients Asia 7.5 Agro-Foodtech 7.6 SIAL China 7.7 International Fast Food Products Exhibition 7.8 Zhengzhou Sugar, Alcoholic Drink & Food Trade Show 7.9 Guangzhou Exhibition on Machinery for Food, Packaging, Printing & Plastics 7.10 China Northeast International Exhibition on Food, Subsidiary Material, Processing Technology & Equipment 7.11 International Exhibition For Food & Drink South China 7.12 International Exhibition For Hotel & Bakery South China 7.13 International Quick Frozen Food Exhibition 7.14 Beijing National Food & Food Processing Machine & Packaging Machinery Show 7.15 Food China 7.16 International Food, Packaging, Print, Plastic Products Exhibition 7.17 Zhejiang Food & Drink Summer Sales Show 7.18 Dalian International Food Manufacturing & Packaging Machine Exhibition/Dalian International Food, Raw Materials & Food Additives Show 7.19 Shanghai International Food Machine & Package Machine Expo 7.20 China International Fair For Food, Food Processing & Packaging 7.21 Shanghai International Supermarket Expo 7.22 Shanghai International Food Expo 7.23 Packtech & Foodtech 7.24 Liaoning Food Show 7.25 Food & Hotel South China 7.26 Chengdu International Food, Food Processing & Packaging Show 7.27 International Food Show 7.28 Interfood Shanghai 7.29 International Food Processing & Packaging Machinery Exhibition 7.30 China Food Industry Exhibition 7.31 China International Dairy Product & Technology Exhibition APPENDIX: MARKET BACKGROUND A.1 Fast Facts A.2 Regions of China Map A.1 CHINA: PROVINCES AND MUNICIPALITIES A.3 Demographics A.3.1 Demographics: Total Population Table A.1 TOTAL POPULATION, 2000–2006 A.3.2 Demographics: Population by Location Table A.2 POPULATION BY URBAN-RURAL DIVIDE, 2001–2007 A.3.3 Demographics: Population Breakdown by Location Table A.3 POPULATION % BREAKDOWN BY URBAN-RURAL DIVIDE, 2001–2007 A.3.4 Demographics: Population by Province Table A.4 POPULATION BY PROVINCE, 2001-2007 A.3.5 Demographics: Population Density by Province Table A.5 POPULATION DENSITY BY PROVINCE, 2003-2006 A.3.6 Demographics: Population Concentration Map A.2 POPULATION CONCENTRATIONS BY PROVINCE, 2007 A.3.7 Demographics: Population by Gender Table A.6 TOTAL POPULATION BY GENDER & % BREAKDOWN, 2001–2007 A.3.8 Demographics: Population by Age Group Table A.7 POPULATION BY AGE GROUP, 2001–2007 Table A.8 % BREAKDOWN OF POPULATION BY AGE GROUP, 2001–2007 A.4 Consumer Attitudes A.4.1 Consumer Attitudes: Overview A.4.2 Consumer Attitudes: Response to Political Change A.4.2 Consumer Attitudes: Response to Economic Change A.4.3 Consumer Attitudes: Changes in Lifestyle Livelihood Individual loans Housing Possessions Travel Entertainment Health and Fitness Purchasing Influences Taboos A.5 Consumer Wealth A.5.1 Consumer Wealth: GDP and Cost of Living Dealing with WTO China’s New Middle Class Table A.9 MIDDLE AND UPPER INCOME HOUSEHOLDS IN CHINA, 1995/2000/2005/2010/2015 Table A.10 TOTAL CONSUMPTION BY MIDDLE AND UPPER INCOME HOUSEHOLDS, 2005/2010/2015 Table A.11 CONSUMPTION BY MIDDLE AND UPPER INCOME HOUSEHOLDS & % OF TOTAL HOUSEHOLDS, 1995/2000/2005/2010/2015 Confident Shoppers Table A.12 GDP AND COST OF LIVING INDEX, 2001–2007 A.5.2 Consumer Wealth: Provincial GDP Table A.13 GDP BY PROVINCE, 2001–2007 A.5.3 Consumer Wealth: GDP Growth by Province Table A.14 GDP GROWTH BY PROVINCE, 2001–2007 A.5.4 Consumer Wealth: GDP Per Capita by Province Table A.15 PER CAPITA GDP BY PROVINCE, 2001-2007 A.5.5 Consumer Wealth: Concentration of Wealth by Province Map A.3 VALUE OF GDP PER CAPITA BY PROVINCE, 2007 A.5.6 Consumer Wealth: The Major Cities Table A.16 LEADING CITIES KEY ECONOMIC INDICATORS, 2006 A.6 Households A.6.1 Households: Overview of Household Conditions A.6.2 Households: Total Households by Size Table A.17 NUMBER OF HOUSEHOLDS BY SIZE, 2001–2007 A.6.3 Households: Total households by Urban/Rural Split Table A.18 NUMBER AND SIZE OF HOUSEHOLDS BY LOCATION, 2001–2007 A.6.4 Households: Income Earners Per Household Table A.19 AVERAGE NUMBER OF INCOME EARNERS PER HOUSEHOLD, 2001–2007 A.7 Employment A.7.1 Employment: Number of Workers by Sector Table A.20 NATIONAL EMPLOYMENT BY SECTOR, 2001–2007 A.7.2 Employment: Growth by Sector Table A.21 GROWTH IN EMPLOYMENT BY SECTOR, 2001–2007 A.7.3 Employment: Number of Workers by Gender Table A.22 TOTAL NATIONAL WORKFORCE BY GENDER, 2001–2007 A.7.3 Employment: Number of Workers by Habitation Table A.23 NATIONAL WORKFORCE BY HABITATION, 2001–2007 A.7.4 Employment: Urban Unemployment Table A.24 URBAN UNEMPLOYMENT RATES, 2001–2007 A.8 Consumer Income A.8.1 Consumer Income: Average Incomes by Sector Table A.25 AVERAGE INCOMES BY SECTOR, 2001–2007 A.8.2 Consumer Income: Growth by Sector Table A.26 GROWTH IN AVERAGE INCOMES BY SECTOR, 2001–2007 A.8.3 Consumer Income: Average Incomes by Region Table A.27 AVERAGE INCOMES BY REGION, 2001–2007 A.8.4 Consumer Income: Growth by Region Table A.28 GROWTH IN AVERAGE INCOMES BY REGION, 2001–2007 A.9 Consumer Market A.9.1 Consumer Market: Spending Trends Table A.29 CONSUMER EXPENDITURE* BY BROAD SECTOR AT CURRENT PRICES, 2001–2007* A.9.2 Consumer Market: Per Capita Consumer Expenditure Table A.30 PER CAPITA CONSUMER EXPENDITURE* BY BROAD SECTOR AT CURRENT PRICES, 2001–2007* A.9.3 Consumer Market: Retail Sales and Consumer Spending Table A.31 RETAIL SALES AS A PROPORTION OF CONSUMER EXPENDITURE*, 2000–2006 A.9.4 Consumer Market: Urban Income and Spending Compared Table A.32 URBAN AVERAGE ANNUAL INCOME/EXPENDITURE, 2001–2007 A.10 Exchange Rates A.10.1 Exchange Rates: China Table A.33 AVERAGE ANNUAL RENMINBI EXCHANGE RATES AGAINST A VARIETY OF CURRENCIES, 2000–2007 A.10.2 Exchange Rates: Hong Kong Table A.34 AVERAGE ANNUAL HONG KONG DOLLAR EXCHANGE RATES AGAINST THE UNITED STATES DOLLAR AND RENMINBI, 2000–2007

Summary:

The retail market for sugar in China has grown by over 130% since 2001 to RMB7.66bn in 2007. Despite price fluctuations due to the effects of altering world sugar prices and local shortages the demand for sugar by Chinese consumers is steadily growing. Growth is being stimulated by growing use of sugar as an ingredient in food and beverage products as well as an additive to foods and drinks. In general cane sugar refineries are performing better than beet sugar refineries, many of which are currently recording losses. However, the government is seeking to control production and imports of sugar to maintain prices. Low prices have caused sporadic trouble between the government and sugar growers over recent years. While retail prices have continued to rise, wholesale prices have fluctuated due to local supply inconsistencies, often intervened in by the government using state-owned sugar stocks. The market is also threatened by the rise in prominence of alternative sweeteners such as artificial sweeteners and molasses. Sugar is obviously a major crop for China, both as a result of increasing retail consumption and the switch to high quality products, but also through the much larger food and beverages sector consumption. China grows both beet and cane sugar. Sugar cane is really a form of perennial grass, which is replanted every few years and contains approximately 10% sugar. Sugar beet is an annual crop with around 15% sugar content. As well as sugar for ingredients and personal consumption it is also used for ethanol (an automobile fuel) and other by-products including animal feed and paper. The total consumer market for sugar in China (including food and beverage processing) has grown by 44% since 2001 to RMB50bn (US$6.6bn) in 2007. The arrival of the fast-food chains, western-style supermarkets, greater awareness of convenience foods and the emergence of a generation both willing and able to try new products has meant that the market for sugar in China has grown strongly. Despite price fluctuations due to the effects of altering world sugar prices and local shortages the demand for sugar by Chinese consumers is steadily growing. Growth is being stimulated by growing use of sugar as an ingredient in food and beverage products as well as an additive to foods and drinks.

Companies Mentioned

- Baotou Huazi Industry Co, Ltd - British Sugar (Overseas) Ltd - Dongguan Dongtang Industry Group Company - Guangxi Boqing Food Co, Ltd - Guangxi Fengtang Biochemistry Co, Ltd - Guangxi Funan East Asia Sugar Co, Ltd - Guangxi Guitang (Group) Co, Ltd - Inner Mongolia Zhengbei (Drambor) Food Co, Ltd - Jiangmen Sugarcane Chemical Factory (Group) Co, Ltd (Guangdong Ganhua) - Nanning Sugar Industry Co, Ltd - Taikoo Sugar Ltd