核桃精深加工及市场服务体系项目 Walnut Fine and further processing and Market Service System Project

Name

核桃精深加工及市场服务体系项目
Walnut Fine and further processing and Market Service System Project

Industry Involved

Modern plateau characteristic agriculture

Site

Biological Medicine Industrial Park (Phase 1) in Fengyi Area of Dali Innovative Industrial Park in Dali Prefecture

Description

Yunnan Province has become the largest walnut production base in China. As of the end of 2015, walnut planting area in Yunnan was up to 42.30 million mu, the area with walnut production was more than 10 million mu, the production was up to 850,000t and the production value was RMB 26.6 billion. Walnut planting area and production in Dali account for the largest proportion in that in Yunnan. According to the statistical yearbook of Yunnan Province, in 2014, the walnut production in Yunnan was 644,800t, while that in Dali was 249,500t, accounting for 38.7% of the walnut production in the whole province. To extend the walnut industrial chain in Yunnan Province, increase additional value of walnut, enhance impact of walnut brand in Yunnan and gain more popularity, Yunnan Province is intended to attract social funds to develop a "project for Yunnan walnut deep-processing and brand cultivation". This project has good foundation, broad market prospect and high investment value.

Content

This project mainly consists of fine and further processing line construction and brand cultivation.

Fine and further processing line:

Scheme: annual deep-processed walnut production reaches to 63,000t, including walnut oil of 3,000t, fresh walnut of 5,000t, walnut powder of 5,000t and walnut milk of 50,000t.

Construction contents: the land area is 100 mu for construction of production plant, raw material warehouse and other office facilities, and the building area is 12,000 m².

Construction duration: 3 years

Brand cultivation: including four aspects: positioning of product image, design of brand name, construction of sales channels and brand marketing and promotion

Supporting Conditions

Land utilization planning:

Biological Medicine Industrial Park in Fengyi of Dali Innovative Industrial Park in Dali Prefecture is divided into three phases: for phase 1, the park is located in Fengyi Town of Dali City, and its land area is 3.33 km²; for phase 2, the land area is about 3.37 km²; and for phase 3, the land area is about 3.43 km². There is enough industrial land and abundant supporting facilities in the park and demand on land of this project can be met.

Advantages:

Advantage of raw materials: Yunnan is the first walnut province in China, while Dali is the first prefecture in walnut planting area and production.

Location and transportation advantages: Dali Prefecture is located at the center of the eight prefectures in western Yunnan and it is planned to be built as the center city, transportation junction and logistics center in western Yunnan.

Image advantage: due to long history, culture of great splendor and beautiful scenery, Dali is renowned at home and abroad. Good city image can support cultivation of walnut brands in an invisible manner.

Policy advantage: in addition to preferential policies in tax, industrial, funds and talents for Western Development and "gateway" construction, this project can also enjoy special policy environment in economic development zones of national level.

Investment Estimate and Fund Raising

Investment estimate: the total investment of this project is RMB 172.50 million, including RMB 142.50 million for walnut fine and further processing line and RMB 30 million for brand cultivation

Fund raising: self raising by enterprise, bank loans and policy support

Preferential Policies Applicable

The policies for inviting outside investment provided are Rules for Foreign Investment Promotion in Yunnan Province, Opinions on Further Opening-up to the Outside World, Opinions on Enhancing Promotion of Foreign Investments, Measures of Dali Bai Autonomous Prefecture for Implementing the Service Commitment in Investment Promotion Projects and Interim Provisions on Legal Interests of Foreign Investors in Dali Prefecture, etc.

Market Prediction (Analysis)

Walnut oil market: gap of supply and demand in walnut oil market is wide and the annual gap is about thousands of tons in conservative estimate.

Walnut milk market: in 2015, the demand in milk beverage market in China was 36.31 million tons and the year-on-year growth was 26%. High market demand can guarantee sales of walnut milk of this project.

Marketing strategy: short-term strategy and long-term strategy

Short-term market: The short-term market is based on market in Yunnan Province and supported by market in whole China. In this phase, sales channel construction and brand promotion are dominant. Sales channel outside Yunnan Province as well as electric business platform will be constructed actively and then gradually go through markets in Pearl River Delta, Yangtze River Delta and Wuhan Metropolitan Area.

Long-term market: The long-term market is based on market in whole China and supported by market in Yunnan Province. With establishment of project brand and increase of popularity, the products of the project can represent the quality and brands of walnut in Yunnan Province and then gain certain brand premium. Therefore, the project investor shall focus on selling products in regions with developed economy and large population, strengthen market and brand penetration, as well as exploit overseas market.

Profit Model and Preliminary Benefit Analysis

After completion and operation, this project will bring an annual sales revenue of RMB 1.8 billion and a net profit after tax of RMB 68.79 million. The pay back period is 2.5 years and the construction period is 5.5 years.

Risk Analysis

The main risks are from market and capital management. The risks, although objective, can be kept under control.

Cooperation Pattern

Sole proprietorship

Contact Information

Contact Unit: Investment Invitation and Cooperation Bureau of Dali Economic and Technological Development Zone

Contact Person: Li Jun

Tel.: 13887296337

E-mail: lijunkorn@163.com