China's corn starch business continues to grow

The booming logistics and small house appliance industries have stimulated China's corn starch business, an industrial report pointed out.

According to the report, released by the China Starch Industry Association and CnAgri, an agricultural consultancy, national production of corn starch reached historical records in 2017, topping 25.9 million metric tons, up 15 percent year-on-year.

Due to the fast-expanding delivery business and growing popularity of small house appliances, the demand for wrapping paper — made mainly with corn starch — has been soaring, which led to increased production capacity of the materials.

Liu Aimin, chief researcher at CnAgri, predicted the production capacity of corn starch will keep growing in 2018, by at least five million tons.

"In recent years many companies have invested in their business and expanded production capacity," he said. "In the current stage, capacity is exceeding demand, which will stimulate the companies and cause enterprises to merge and reform in the future."

Tong Yi, head of the CSIA, also pointed out the structure of the corn processing industry is yet to be optimized.

"There are still many companies which are small in size, with incomplete industrial chains and less advanced equipment. They lack the concept of green development," Tong said.