云龙县核桃产业园建设项目 Construction Project of Walnut Industrial Park in Yunlong County

Project Overview

1. Project Name

云龙县核桃产业园建设项目

Construction Project of Walnut Industrial Park in Yunlong County

2. Project Industry

Food and Consumer Goods Manufacturing Industry

3. Project Site

Industrial Park of Caojian Town, Yunlong County, Dali Bai Autonomous Prefecture

4. Project Overview

The project will seize the development opportunity of the times when the country vigorously implements the rural revitalization strategy, and Yunnan Province will create a world-class "green food brand" industrial development opportunity. Based on the brand and raw material advantages of the walnut industry in Yunlong County, the project aims to build a walnut planting and processing mode of "base+farmer+enterprise" for the leading walnut intensive processing enterprises, vigorously develop dried walnut processing, walnut powder, walnut oil, walnut milk, walnut snack food and other related products, enhance the added value of walnut products, cultivate and expand the walnut industry in Yunlong County, expand the market influence of Yunlong walnut brand, and build a walnut industry demonstration base leading the southwest region.

Project Implementation Background

1. Industrial Policies

In 2015, the State Forestry Administration of the People's Republic of China, the Ministry of Finance of the People's Republic of China, State Council Leading Group Office of Poverty Alleviation and Development and the China Development Bank jointly issued the Opinions on Integrating and Coordinating Funds to Support the Development of Woody Oil Industry, which pointed out: some related funds, including integrating and coordinating the special funds of the central government, returning farmland to forests, shelterbelts, central financial forestry subsidy funds, financial poverty alleviation funds, modern agricultural development funds and comprehensive agricultural development funds to support the development of woody oil industry such as camellia oleifera abel and walnut.

In 2020, the walnut industry was listed in the Catalog of Encouraged Industries in Western Regions (2020) by the National Development and Reform Commission, enjoying the preferential policy of collecting enterprise income tax at a reduced rate of 15%.

In 2021, the Opinions of the Central Committee of the Communist Party of China and the State Council on Comprehensively Promoting Rural Revitalization and Accelerating Agricultural and Rural Modernization in an All-round Way (2021) put forward: relying on the advantageous resources with rural characteristics, we build the whole agricultural industrial chain, leaving the main body of the industrial chain in the county seat, and allowing farmers to gain more industrial value-added benefits. We shall accelerate the improvement of the standard system of the whole industrial chain of modern agriculture, promote the standard production of new agricultural business entities, and cultivate the standard "leaders" of leading agricultural enterprises. Based on the primary processing and intensive processing of characteristic agricultural products in the county layout, we will build a modern agricultural industrial park, a strong town of the agricultural industry and industrial cluster with advantages and characteristics. We shall promote the construction of public welfare agricultural products market and agricultural products circulation backbone network. We shall develop leisure agriculture and rural tourism quality routes and improve supporting facilities. We shall promote the construction of demonstration parks and science and technology demonstration parks for the integration of primary secondary and tertiary industries in rural areas.

In 2019, the Guiding Opinions of People's Government of Yunnan Province on Establishing a "One County, One Industry" Demonstration County and Accelerating the Building of a World-class "Green Food Brand" (YZF [2019] No.14) proposed that the key links such as technological transformation, product research and development, brand building and cold chain logistics of leading enterprises should be emphasized. We shall establish a catalogue of key supporting and cultivating leading enterprises, strengthen identification and operation monitoring, and establish a competitive elimination mechanism. We shall improve the ability and level of serving leading enterprises, create a good business environment, and help leading enterprises to go public for financing in all directions. We shall intensify investment attraction and attract a number of domestic and foreign leading enterprises with large scale, strong strength and high brand awareness to participate in the investment and development of leading industrial projects. We shall encourage leading enterprises to establish a modern enterprise system, introduce outstanding talents and advanced technology, and increase investment in research and development.

In 2021, the Outline of the 14th Five-Year Plan for National Economic and Social Development and Long-Range Objectives through the Year 2035 of Yunnan Province pointed out: to speed up the development of the modern industrial system, to vigorously develop agricultural products processing in modern agriculture with plateau characteristics, to build the whole industrial chain of intensive processing with multi-level and multi-link transformation and value-added of agricultural products with plateau characteristics, and to promote the integrated development of rural primary, secondary and tertiary industries.

Notice of Yunnan Forestry and Grassland Bureau on Printing and Distributing the Three-year Action Plan for Improving Quality and Efficiency of Walnut Industry in Yunnan Province (2021-2023) proposes that by 2023, the walnut industry will gradually realize the transformation from "big" to "strong", and the level of industrial scale, specialization, greening, organization and marketization will be greatly improved, the product processing capacity and level will be significantly enhanced, and the degree of industrial agglomeration will be significantly improved, so as to make the walnut industry an important industry supporting the economic and social development in Yunnan mountainous areas.

2. Upper-Level Plan

The overall planning, industrial development planning, and industrial land planning of the industrial park have been completed.

Project Construction Plan

1. Project Site Overview

(1) Project Site: southeast of Youyi Food Company in Caojian Town Industrial Park.

(2) Land Scale: the project covers an area of 200 mu.

(3) Land Use Attribute: industrial land (to be regulated), plot ratio ≤ 1; Building density ≤ 35%; Green rate ≥35%.

2. Construction Duration

One Year

3. Investment Estimate

(1) Investment Scale: RMB 290 million

(2) Fund Raising: Self-raised by enterprises, bank loans, etc.

4. Project Content

(1) Project Positioning: we want to build a leading walnut distribution, trading, R&D and intensive processing base in southwest China, and radiate walnut intensive processing, e-commerce trading, cold chain logistics and scientific research and development centers in western Yunnan.

(2) Project Content: walnut dried fruit processing production line, walnut powder, oil and milk processing production line, walnut snack food production line, warehousing cold chain logistics center, product research and development center, e-commerce trading center, comprehensive office building and other supporting facilities will be built.

Project Advantages

1. Industrial Basis

Yunlong County has a wide range of walnut planting and a large contiguous planting area. There are more than 60 specialized walnut cooperatives and 44,283 walnut growers in the county, accounting for 87% of agricultural households in the county. Among them, there are 21 households with a planting area of more than 500 mu and 2 walnut processing enterprises. Among them, Yunlong Youyi Grain, Oil and Food Co., Ltd. has been put into operation, and Tuanjie Hongda walnut intensive processing project is under construction. The primary walnut processing industry chain in Yunlong County is gradually taking shape, which has the industrial basis for further optimization and development.

Formation of Basic Processing System: At present, a primary walnut processing and sales model of "fresh walnut purchase-processing (de-greening, baking, sorting and packaging)-export" has been initially formed locally. However, the local walnut processing enterprises are small in scale, weak in brand marketing and high in business pressure.

Sales Channels Constantly Expanding: the distribution market of walnut dried fruit in Yunlong County is active, and it has gradually become a larger distribution center of walnut in western Yunnan.

At the same time, Yunlong County E-commerce Industry Association and walnut merchants constantly explore the market through e-commerce sales channels, and Yunlong County walnuts are gradually sold to all parts of the country.

2. Resource Advantages

(1) Good Natural Environment

Yunlong County is located in a subtropical plateau monsoon climate zone, with an annual average temperature of 16.1℃, annual average rainfall of 781.4 mm, annual average sunshine of 2088.3 hours and annual average frost-free period of 258 days. The special geographical location and complex geomorphic influence have created a three-dimensional mountain climate with obvious characteristics in Yunlong County. The climate environment of "clear separation of dryness and wetness, plenty of rain and heat in the same season, and sufficient sunshine" has been formed, which is very beneficial to the growth of walnut trees.

(2) Excellent Quality and High Yield of Walnuts

Yunlong is the birthplace and one of the main producing zones of Yunnan Juglans sigillata Dode. It has been awarded the titles of "Key County of China's High-quality Walnut Base", "National Advanced Unit of Serving Fruit Industry" and "China Famous Fruit" by the China Fruit Marketing Association, and has obvious competitive brand advantages in the market.

Walnut, as a traditional economic fruit of Yunlong, has a long planting history, excellent quality, large-scale planting, and sufficient and high-quality raw materials supply to lay a solid foundation for the downstream development and extension of walnut products.

Excellent Quality of Walnuts: Yunlong County, due to its unique natural climate and environmental conditions, is the birthplace and one of the main producing zones of Yunnan Juglans sigillata Dode. Its fruit is famous both at home and abroad for its big size, white kernel, sweet taste, high oil yield and rich nutrition.

Large Output Value: the walnut planting area in Yunlong County is 1.3 million mu. In 2019, the output of walnut in the county reached 55,100 tons, with an output value of RMB 771 million.

High Age of Ancient Walnut Trees: there are a large number of old walnut trees over 300 years old.

3. Supporting Conditions

Supplies and Leveling Conditions: the project site is close to the main road of Caojian Industrial Park, and the land has not been leveled yet; Drainage and other facilities need to be further improved.

Preliminary Work: the land use planning of the industrial park has been completed.

Environmental Assessment: this project does not involve cultivated land redline or ecological redline.

4. Location and Transportation

Yunlong County, located in the west of Yunnan Province, is the junction of Dali Bai Autonomous Prefecture, Baoshan City and Nujiang Lisu Autonomous Prefecture. It connects Eryuan County and Yangbi County in the east, Yongping County and Baoshan City in the south, Lushui City in Nujiang Prefecture in the west, Jianchuan County and Lanping County in Nujiang Prefecture in the north. It is an important stop for "the Belt and Road Initiative" and the western port of China-ASEAN economic circle, and an important land passage connecting South Asia, Southeast Asia and the Western Pacific Economic Zone.

Railway: it is about 140 km (2 hours' drive) away from Dali high-speed railway station.

Airport: it is about 160 km (2.5 hours' drive) from Dali Airport.

Expressway: there is Hangzhou-Ruili Expressway. Dali-Yangbi-Yunlong-Lanping Expressway and Yunlong-Yongping Expressway are under construction. Yunlong-Lushui Expressway is under planning.

National Highway: G320

Provincial Highway: S320, S228, S311, S227 and S232

County Highway: Gongbiao Highway, Shigong Highway, Guanxi Highway, Jiancao Highway and Yunjian Highway.

5. Development Opportunities

(1) Policy Environment: national, provincial, city, county and district governments have issued a number of policies to support and encourage the development of the walnut industry.

(2) Market Analysis: in recent years, China's walnut market scale has been increasing year by year. In 2019, the domestic walnut industry market scale was about RMB 57.94 billion, a year-on-year increase of about 5.73%.

Although the rapid growth of walnut production has led to the imbalance between supply and demand in some areas and the decline of walnut price, on the whole, driven by the market segments of walnut nuts, walnut oil and walnut milk, there is still much room for development in the demand side of walnut market.

Roasted Nuts: data show that by the end of 2019, the sales scale of enterprises above designated size in China's roasted nuts industry reached RMB 176.64 billion, up by 8.0% compared with the same period of last year, and it is estimated that it will exceed RMB 180 billion in 2020. With the increasing demand for healthy food, the nut industry will continue to maintain a strong development momentum, and the demand for walnuts will also rise.

Walnut Oil: at present, the self-sufficiency rate of edible vegetable oil in China is only about 30%. The rise of unilateralism and protectionism and international trade friction superimposed on the dual impact of the COVID-19 epidemic to increase the uncertainty of imports, China's edible oil supply security situation is serious. On the other hand, because walnut oil is fresh and pure, rich in nutrition and light in taste, and its fatty acid configuration is similar to that of breast milk, it is easy to be digested and absorbed, and it is an advanced health-care edible oil for children's development, women's pregnancy and postpartum rehabilitation, so it is favored by female consumers. At present, the market price of walnut oil is 10-20 times that of common edible oil, and the market scale only accounts for 1% of the edible oil market. With the progress of walnut oil processing technology, walnut planting and processing links are gradually moving towards the field of scale and standardization, and the price of walnut oil is expected to be further reduced, and the market scale will be gradually expanded.

Walnut Meal Replacement Products: in recent years, with the help of the viral concept of healthy meal replacement, walnut meal replacement featuring "returning to nature" has also become the "new favorite" of people who seek fitness and weight loss and has been promoted to a market that is worth tens of millions RMB. Walnut protein powder/energy bars are also a popular necessity for people who seek fitness and weight loss during the same period. Although the market volume of walnut protein powder/energy bar is small at present, the data shows that the sales growth rate has been maintained at a high level in the past three years.

Element Guarantees

1. Production Operation Cost

Walnut industry is the key industry supported by Yunlong. The land for project construction is guaranteed, the land cost is low, the infrastructure conditions such as water, electricity, roads and communications are available, the supporting elements for project construction are complete, and it is convenient for enterprises to land.

Project Policy Support

1. Optimization of business environment

Notice of People's Government of Yunnan Province on Measures for Optimizing Business Environment in Yunnan Province (YZG [2020] No.1)

Government Services Work Plan for Optimizing and Improving the Business Environment of in Dali Prefecture

2. Fiscal and tax preferential policies at all levels available to enterprises such as provincial/municipal/district/county/park investments

Measures to Encourage Investment by Leading Enterprises in the Green Food Industry in Yunnan Province (Trial)

Guide for the Application of Cold Chain Logistics Award and Supplement Project for Cultivating Leading Enterprises in the Green Food Industry in Yunnan Province

Benefit Analysis

After the completion of this project, the operating revenue mainly includes the sales income of walnut oil, walnut milk, walnut protein powder and snack food, and the service income of cold chain, storage, seedlings, technology, etc., which will be further explored in the future. It is estimated that the annual output value will reach more than RMB 226 million with an investment payback period of about 9 years.

Investment Promotion Direction

Walnut industry chain leading enterprises, intensive processing and e-commerce sales.

Cooperation Pattern

Sole proprietorship, joint venture, and cooperation.

Contact Information

Contact Authority: Investment Promotion Bureau of Yunlong County

Contact Person: Li Donghua

Tel.: 13769228393