Market Information
Asia Pacific

The Market for Malting Barley and Malt
in China

A Brief Report

May 2002

Alberta Office
Canadian Embassy
Beijing

1. Overview

The beer market in China has been growing at a healthy rate of 5-6% per annum and is expected to continue to increase at this rate in the future. Nearly two thirds of total malting barley demand is currently met by imports and domestic production of malting barley has been decreasing. Continued beer demand growth combined with lack of ability to expand domestic production of malting barley would indicate that the outlook is for continued strong growth in imports of barley for malting purposes.

Canada supplies about 25% of the import volume with exports of US$106 million in 2001. Prospects look very good for Canada to expand volume substantially in the years ahead, subject to product availability. The new lower tariff of 10% for malt which was put in place January 1, 2002 after China's accession to the WTO will create new opportunities for this product as well.

2. Malting barley production

The Northwest provinces of Xinjiang, Xingxia and Gansu and the Northeast provinces of Heilongjiang, Jiangsu and Zhejiang are China's main malting barley production areas. However, in recent years China's malting barley production has been decreasing at 10% each year and can now only meet about one third of domestic demand.

In 2000, China produced more than 20 million tons of beer which consumed 3 million tons of malting barley, of which 2 million tons were imported from North America, Australia and European countries. Most large beer breweries use imported malting barley as their major raw material.

The main varieties of imported malting barley are Schooner and Sloop from Australia, Harrington from Canada, and Alexis from the European Union.

3. Malt production

China's total malt production was 2.5 million tons in 2001, the second highest production level in the world. Currently, there are approximately 20 large scale Chinese malt producers with annual output between 40,000 and 200,000 tons, and 47 medium-sized malt producers with annual output between 10,000 and 30,000 tons. In addition, about 100 beer producers have established their own malt production facilities.

As of January 2002, there were about 100 Chinese breweries with production capacity of over 50,000 tons of beer which use 1.7 million tons of malt annually. Another 380 small breweries require 520,000 tons of malt annually.

4. Imports

Chinese imports of malting barley have increasing dramatically reflecting the reduced domestic production together with a robust 5-6% annual increase in beer consumption.

Chinese imports of malt have been minimal with only US$1.2 million worth of malt (roasted and not roasted) imported in 2001.

5. Tariff Rates:

Malting barley has a Value Added Tax (VAT) of 13% and malt has a VAT of 17%.

6. Chinese malt barley and malt importers

According to China Brewery Association and China Malt Industry Association, there are about a dozen major malting barley importers in China.

COFCO is the largest importer of malting barley and uses it in its malt processing facilities in Dalian, Liaoning Province. Major Chinese beer producers such as Qingdao Beer, Yanjing Beer and Huarun Beer also have a department which conducts malting barley trade for its own use.

Below are coordinates of some Chinese importers of malting barley:

Beijing Long Yang Brewing Material Corporation
Add: Jincheng Center District 4
Fangqunyuan,Fangzhuan
Beijing China,100078

Contact: Xu Jin Yang, Manager
Tel: 86-10-6762-2029, 6764-8694, 6764-8693
Fax: 86-10 6761-2274, 6762-1986
E-mail: beijinglongyang@sina.com
www. longyang.com.cn

Shandong Jiufa Company Ltd.
Jindu Masion, No. 9,
Nanda Street, Yantai,
Shandong Province, China

Contact: Mr. Ma Qinghai, Manager of Malt Barley Dep't
Tel: 86 535 660-3283
Fax 86 535 662-3798

China Grains & Oils Group Corporation, Imp. & Exp. Branch
Add: No. 5 Xi San Huan Zhong Rd.
Haidian District, Beijing, 100036, China

Tel: 86 10 68474763
Fax: 86 10 68474721
Email: jinfuzi@public3.bta.net.cn

China National Native Produce & Animal By-Products Imp. & Exp. Corporation
China Grains, Oils and Feedstuffs Co., Ltd.
Add: Rm. 8005
No. 208 An Ding Men Wai Ave.
Beijing, 100011, China

Tel: 86 10 64207800
Fax: 86 10 64205100
Email: yangli@tuhsu.com.cn

China National Cereals, Oils & Foodstuffs Imp. & Exp. Corp.
Beer Raw Materials Dept.
Add: Tower A COFCO Plaza
No. 8 Jianguomennei Ave.
Beijing, 100005, China

Tel: 86 10 6526-8888 ext. 2925
Fax: 86 10 6527-6041
www. cofco.com.cn

Jiangsu Heng Xing Malt Co., Ltd.
Add: No.86, Suzhong South Road
Baoying, Jiangsu, 225800, China

Tel: 86 514 822-2294
Fax: 86 514 822-3481
Email: by.myc@public.yz.js.cn

China Township Enterprises Corp., Yantai Co.
Add: 10/F, Huifeng Plaza
201-209 Shengli Road, Yantai
Jiangsu, 264001, China

Tel: 86 535 662-3295
Fax: 86 535 662-3798
Email: jiufa@public.ytptt.sd.cn

Ningbo Malt Co., Ltd.
Add: Da Gang Industrial Zone
Beicang, Ningbo
Jiangsu, 315800, China

Tel: 86 574 688-5598
Fax: 86 574 688-3958
Email: nbmalt@gd-y-malt.com
www. Gd-y-malt.com

Yenhere Corporation
Add: 21/F Futai Plaza
No 18 Hong Kong Middle Road
Qingdao, Shangdong, China

Tel: 86 532 576-1346
Fax: 86 532 576-8370
Email: stormli@public.qd.sd.cn
www. Yenhere.com.cn

Guangzhou Malt Co., Ltd.
Add: No. 2 Chuang Ye Road
Guangzhou ETDZ
Guangdong 510730 China

Tel: 86 20 8221-2422
Fax: 86 20 8221-2988

7. Relevant Trade Associations

China Brewery Association
B22, Fuwai Ave.
Beijing, China

Contact: Mr. Wang Yancai
Tel: 86-10-6839- 6516
Fax: 86-10-6839-6518
Email: cadmia2@clii.com.cn

China Beer Association
Guan Hua Yuan Plaza
Huan Bei Road, Chaoyang District
Beijing, China

Contact: Mr. Xiao Derun, Chairman
Tel: 86-10-6503-1529
Fax: 86-10-6503-1529
Email: pigxh@sina.com

China Malt Industry Association
Yangzhou Agriculture College
Jiangsu, China

Contact: Mr. Liu Zi Qiang, Chairman
Tel: 86-514-735-4324
Fax: 86-514-734-9817

8. Major Breweries

According to the China Beer Association, 70% of Chinese breweries use malting barley for beer production while about 30% use rice as the raw material. Wheat is seldom used for beer production.

Brewchina.com.cn publishes a list of Chinese beer producers whose sales are over RMB300 million (C$60 million) in 2000 as shown below.

Source: Brewchina