reached 1,000,000t/a in 2012, and the company produced 970,000 tonnes of MSG - up 49%from 2011. Sales climbed 53% to 940,000 tonnes. As a result, as for some big MSGcompanies which didn't expand their capacities, their market shares are decreasing.Increasing capacity has also pushed down prices. Fufeng Group, the biggest MSG company inChina, adopted a low-price strategy to capture more market share. Fufeng Group's 2012annual report shows it sold MSG for 11% less in 2012 than it did in 2011. Rising raw materialsprices such as for corn also put pressure on the profit margins. According to the annual reportsof Fufeng Group, Meihua Group and Henan Lotus, their profit margins of MSG business allshow a down trend.However, there is no need to be pessimistic. In general, the consolidation is benefit for the longterm development for the MSG industry, and the profit margin of MSG may witness a slightrebound in the near future.
HeadlinesSupply and demandConsolidation of domestic MSG industry drawing to an endCrystalline fructose industry faces both opportunities and challengesImport & export analysisChina's mannitol export volume shows recovery in Jan.-May 2013Chinese corn products Imp. & Exp. analysis in May 2013Price updatePrice update of corn products in July 2013Domestic ex-work price of citric acid rebounded in June 2013Ex-works price of threonine declined in H1 2013Market and company dynamicsBaolingbao to buy bank financial products with no more than USD65.25 millionFufeng Group makes the list of top 100 enterprises in light industries againPolicyChina increases temporary reserve price of corn in 2013/2014Chinese government has approved two GM corns importCompetitivenessConsumption of wheat used as feed to decline this year News in brief China Starch's financial performance to decline in the first five months of 2013USDC launches preliminary administrative ruling on Chinese citric acid and citrateCargill Luohe's high-fructose corn syrup project put into operationZhejiang Fuel's bio-fuel ethanol project startedChina to complete the target of backward capacities elimination(2011-2015) ahead of scheduleLonglive Bio-technology launched a new functional food containing XOS