China Releases 12th Five-Year Plan for the Wine Industry

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By Yao Lu

Jul. 9 – With the continuing improvements in living standards, increasing consumption of luxury goods, and changing drinking habits of the Chinese people, the country’s wine industry has experienced tremendous growth and development over the past five years. Therefore, in order to support and regulate the healthy development of the wine industry, China’s Ministry of Industry and Information Technology (MIIT) and Ministry of Agriculture (MOA) jointly issued the “12th Five-Year Development Plan for the Wine Industry (hereinafter referred to as the ‘Plan’)” on July 6.

The Plan illustrates the main achievements of the industry during the 11th Five-Year Plan period, as well as sets up the development objectives for the 12th Five-Year Plan period. In addition, it lays out the main tasks for the industry and comes up with safeguarding measures to facilitate the implementation of the Plan.

Key Achievements 2006-2010
According to the Plan, below were the key statistics from the industry in 2010:

  • The production volume of wine hit 1.089 billion liters, representing an increase of 105.7 percent compared to 2005
  • The sales revenue of wine reached RMB32.5billion, representing an increase of 217.6 percent compared to 2005
  • Profits and taxes reached CNY6.4 billion, representing an increase of 159.8 percent compared to 2005
  • The production volume of the top 30 wine industry enterprises accounted for 43.4 percent of the total output

Development Objectives 2011-2015
According to the Plan, below are the key development targets objectives for the industry by 2015:

  • The Plan targets wine output of 2.2 billion liters by 2015, double the output seen in 2010, with annual growth of 15 percent
  • Sales revenue in 2015 is expected to reach RMB60 billion, up 85 percent compared with that of 2010, with average annual growth standing at 13 percent
  • Profits and taxes are anticipated to be RMB 12 billion, an 88 percent increase over 2010

The Plan also mentions that support will be given to develop a group of internationally-influential enterprises. Among these, two large enterprises groups, each with sales revenues reaching more than RMB10 billion will be cultivated. Meanwhile, each major production area shall establish and develop one to two famous brands with the characteristics of the production location.

The plan further points out that central, west and northeast China will receive greater support from the government in the creation of vineyards with local features to cultivate more domestic wine brands. The goal is that the share of wine output from western China will constitute 20 percent more towards the nation’s total in 2015.

Main Tasks 2011-2015
As forwarded by the Plan, there are five major tasks during the 12th Five-Year Plan period. They are:

  • Strengthening the guarantee for raw materials
  • Promoting industrial restructuring
  • Giving full play to the role of scientific and technological support
  • Guaranteeing food quality and safety
  • Strengthening cultural brand building

Safeguarding Measures
To ensure the full implementation of the Plan and to better support the development of the industry, the government offers six measures to facilitate the goal.

  • Providing policy guidance and coordination
  • Strengthening management of the industry
  • Increasing support for the industry
  • Carrying out the management regarding division of production areas
  • Advancing the development of a system of good faith for enterprises
  • Utilizing fully the functions of industry organizations

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