Starch sugar production tops other deep-processed starch products. As a new type of sweetner, it is widely used in food industry. By Year 2005, starch sugar products increased from 6 to 27 kinds. China?s starch and starch sugar production registered 10.9 million MT and 4.2 million MT in 2005, exceeding the previous year by 16.82% and 21.03% respectively. Starch and starch sugar exports registered 226,200 MT and 353,300 MT in 2005, valuing $64.32 million and $100 million respectively. 7 starch sugar enterprises were capable of more than 200,000 MT/year each in 2005, contributing to 71.42% of the nation?s total. The largest producer was capable of more than 800,000 MT a year. The number of producers decreased to 30, suggesting a further concentration in starch sugar production.

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BOABC INSIGHTS 1

NEWS FLASH 1

1.1 FEED ADDITIVE INDUSTRY?S NEWS UPDATE & POLICY REVIEW 1

1.2 MONTHLY REVIEW OF MAJOR FOOD ADDITIVE ENTERPRISES? DEVELOPMENT 2

1.3 NEW TECHNOLOGY & NEW PRODUCTS 3

FOOD ADDITIVE INDUSTRY?S DEVELOPMENTS 3

2.1 PRESERVATIVES, ANTIOXIDANTS & FRESHNESS AGENTS 3

China?s Major Preservative, Antioxidant & Freshness-Preserving Agent Producers 3

2.2 FLAVOR-ENHANCERS 4

Starch Sugar Industry under Rapid Development 4

2.3 THICKENING, STABILIZING & TEXTURE-MODIFYING AGENTS 6

China?s Pectin & Agar Imports in 2006 6

2.4 NUTRITIONAL FORTIFICATION SUBSTANCES 7

Ministry of Health to Extend Iron-Fortified Soy Sauce in 14 Provinces 7

Fonterra Losing Shares in Dairy Ingredient Market 7

2.5 FOOD COLORANTS 8

Excessive Use of Benzoyl Peroxide in Wheat Flour 8

2.6 FOOD FLAVORS 8

Cigarette-Use Flavor Production 8

MARKET PRICE OF FOOD ADDITIVES 9

3.1 MARKET PRICE OF PRESERVATIVES, ANTIOXIDANTS & FRESHNESS AGENTS 9

3.2 MARKET PRICE OF FLAVOUR-ENHANCERS 9

3.3 MARKET PRICE OF THICKENING, STABILIZING & TEXTURE-MODIFYING AGENTS 11

3.4 MARKET PRICE OF NUTRITIONAL FORTIFICATION SUBSTANCES 12

3.5 MARKET PRICE OF FOOD COLORANTS 12

3.6 MARKET PRICE OF FLAVOUR 12

FOOD ADDITIVE IMPORTS & EXPORTS 13

CHINA?S COCOA MARKET TREND IN 2007 13

FOOD ADDITIVE CONSUMPTION 14

FOOD ADDITIVE CONSUMPTION FOR DIFFERENT FOOD PRODUCTS 14

Citric Acid Consumption Restricted in Drinks 14

ABOUT BOABC 16