Phase I of Songming Green Food Industrial Park Project in Yunnan Dian Zhong New Area

Project Name

云南滇中新区嵩明绿色食品产业园一期项目

Phase I of Songming Green Food Industrial Park Project in Yunnan Dian Zhong New Area

Project

Industry

Food and Consumer Goods Manufacturing Industry

Project Site

Plot 1 and plot 2, south of the Management Committee of Yunnan Flower Demonstration Park, Songming County, Kunming City, Yunnan Province

Project Overview

By virtue of a sound industrial basis and guided by the market demand, the project focuses on introducing large and quality leading food enterprises inside and outside the province, developing intensive processing, terminal food and healthy food, and realizing scale and centralized development of agricultural product processing in the park, in a bid to build a green-food intensive processing center, a distribution center, an information and e-commerce center and a green-food industry cluster that will drive the whole province, interconnect the whole country and orient to the South Asia and Southeast Asia, thus building the unique industrial business card of Songming.

Project Construction

Content

Construction scale: The project is planned to be implemented on plot 1 with a construction land of 300 mu and plot 2 with a construction land of 200 mu. The regulatory plan has been completed. Plot 1 is constructed according to "one axis and three areas", including the industrial development axis, flower-food development area, flower-medicine development area and flower-daily-chemical development area. Plot 2 is constructed according to "one center, one axis and three areas", including the comprehensive industrial center, industrial development axis, green-food processing area, processing area of agricultural local products and agricultural area of digital facilities.

Construction Duration: 3 years

Land area: 1,100 mu

Supporting Conditions

1. Project Advantages and Opportunities:

Located in the eastern core area of the Dian Zhong New Area, Songming is within the half-hour economic circle of Kunming and airport and is the core area for integrated development of modern new Kunming and Dian Zhong New Area; Songming is an important part in Kunming's construction of a radiation center oriented to the South Asia and Southeast Asia. A station is set up at Songming for Guiyang-Kunming railway and Shanghai-Kunming high-speed railway, and a transit station is planned at Songming for Chongqing-Kunming high-speed railway; the Hangzhou-Ruili expressway and Chongqing-Kunming expressway meet within the territory; the Songming-Kunming expressway and Xiaopu-Wulong expressway surround the county; the Kunming ring expressway and airport north expressway connect the east and west; national highways 213 and 320 run through the whole territory; the Changsong avenue and Airport avenue lead directly to Kunming Changshui International Airport.

2. Associated Industries:

The agricultural research force is powerful. With four science and technology R&D bases, three academician (expert) workstations and seven modern agricultural science and technology research centers, Songming state-level modern agriculture demonstration park gathered a group of top talents in agricultural science and technology research and development and built a modern agricultural system with agricultural science and technology research and development as the main body and covering planting, product marketing, brand cultivation and other functions. Construction of the flower public display platform, public information platform and R&D platform has been completed in Yunnan's Songming modern agricultural science and technology demonstration park, which can develop with the green-food industrial park in a coordinated way.

Rich agricultural resources and sound industrial basis; Songming is located at low latitude and high altitude. Due to the special geographical environment, Songming is rich in agricultural and sideline product resources; it is a big agricultural province in China; plateau-characteristic agriculture is the key and feature of Yunnan province's agriculture. It is the famous "granary of Dian Zhong" and "the land of fish and rice." Songming has been built into a national, provincial and municipal production base of commodity grains, flue-cured tobaccos, commercial pigs, beef cattles and mutton sheep, fishery, fruits and vegetables. Yanglin liquor, "the first liquor in Yunnan", is awarded the title of "China time-honored brand" by the Ministry of Commerce of the People's Republic of China. Songming has been successfully established as a national agricultural-product quality safety county; a national modern agricultural science and technology demonstration park has been built in Songming. At present, the state-level modern agricultural demonstration park has 68 enterprises, including 12 foreign-funded enterprises; it is speeding up the construction of six dominant agricultural industries, including the grain industry, tobacco industry, livestock industry, vegetable industry, flower industry and fruit industry, which can form a linkage development with the project.

3. Early Preparations: An enterprise has settled in plot 2 of the park; the regulatory plan has been completed; construction has begun for the agricultural area of digital facilities.

Investment Estimate and Fund Raising

Investment estimate: RMB 1.2 billion.

Fund Raising: elf-raised by enterprises and bank loan.

Preferential Policies Applicable

The project may enjoy relevant preferential policies stipulated in the Measures to Encourage Investment by Leading Enterprises in the Green Food Industry in Yunnan Province (Trial) and Trial Measures of Preferential Policies for Investment Attraction of the Manufacturing Industry in Yunnan's Dian Zhong New Area.

Market Prediction (Analysis)

China's green food is in the introduction period, with a substantial development potential. With the remarkable growth of China's national economy and the integrated development of the global economy, as well as the successful transformation of China from a "adequate food and clothing" society to a "well-off" society, people have increasingly higher requirements for the quality of agricultural products and food, especially for pollution-free food and green food. From the perspective of the number of certified green-food enterprises, more and more green-food enterprises have been recognized; the number of certified green-food enterprises in the industry has increased substantially every year; in 2019, the number of certified green-food enterprises in China was nearly 7,000.

The scale of China’s green food market continues to expand. With the increase in the number of companies, the number of certified products in the industry has also seen rapid growth. In 2019, China's domestic sales of green food reached RMB 465.66 billion, and exports were US$4.131 billion. The development of green food has achieved good economic, social and ecological benefits.

Profit Model and Preliminary Benefit Analysis

According to estimation, the main income of the project is the sales of green food, and the investment cost is going to be recovered in the seventh year of the project (excluding the construction period).

Risk Analysis

Capital risk: In the early stage of project production, a large amount of capital needs to be invested to purchase raw materials and equipment, which requires a large amount of capital for the company and requires the company to have strong capital management and control capabilities.

Raw material risks: The production and development of green products requires very high-quality raw materials as support, and companies need to find high-quality, long-term raw material suppliers to supply them with raw materials for their production.

Market risk: The prices of green food is much higher compared with other types of products. Given a relatively lower consumption capacity of the general public, the customer group for green food is small, which makes it necessary for relevant businesses to do preliminary market research to have targeted market and consumer groups.

Cooperation Pattern

Joint venture, sole proprietorship, cooperation, etc.

Contact Information

Contact entity: The Management Committee of Yunnan Flower Demonstration Park

Contact Person: Li Yongwen, Li Xingyong

Tel.: 0871--67981413

Fax: 0871--67981413

E-mail: 1056960585@qq.com