Benchmarking on Chitosan Production in China

Benchmarking on Chitosan Production in China

Although chitosan industry in China has developed for about twenty years, it is still immature. There are few large-scale enterprises, and most are township enterprises with unscientific production and management. There is no strict and uniform product standard either, which results in some confusions in the chitosan price in China’s market.

What’s the production cost in China’s chitosan producers? What constitute this production cost? What’s the profit margin to Chinese producers?

In order to find the answers to these questions, CCM carries out this benchmarking analysis to China’s chitosan production at present.

After various chitosan production methods are introduced briefly, the report dwells on the most popular method for the benchmark of chitosan production cost and profit in China by finding answers to the following questions:
ü What raw materials are involved in Chinese chitosan production?
ü What is the cost structure of the raw materials?
ü How does the cost structure of the raw material differ for the production of different specifications of chitosan, namely industrial grade chitosan, including 70% DAC degree and 85% DAC degree, food grade chitosan, including 90% DAC degree and 95% DAC degree?
ü What are the manufacturing cost structures for different specifications of chitosan?
ü What is the management cost?
ü What’s the production cost from chitin to chitosan? And how does it differ from that with shrimp and crab shell as the starting material?
ü What’s the profit in Chinese manufacturers?

This report also provides a case analysis, with Jiangsu Xincheng as the object.

With this report, the reader will have a clear picture of China's chitosan production level and know where China is weak and where it is strong in chitosan production.




Jiangsu Nantong Xincheng Biological Industrial Co., Ltd., and Shandong Jinan Haidebei Marine Bioengineering Co., Ltd.

TABLE OF CONTENT
Executive summary
Introduction and methodology
I Brief introduction to various production methods of chitosan
II Production cost of chitosan in China
II-1 Brief description of the most popular production process
II-2 Flow chart of chitosan production
II-3 Theoretical model of raw material
II-4 Estimation on the cost and profit of chitosan production
II-4.1 Estimation on raw material cost
II-4.2 Estimation on manufacturing cost
II-4.3 Estimation on management cost
II-4.4 Estimation on total production cost
II-4.5 Estimation on cost from chitin to chitosan
II-4.6 Estimation on profit in Chinese manufacturers
II-4.6.1 Sales channel of chitosan manufacturers
II-4.6.2 Pricing of chitosan for each application
II-4.6.3 Shipping cost of export chitosan to Europe or USA
II-4.6.4 Profit estimation in A(B...) manufacturer
II-5 Findings and conclusions
III Global situation of chitosan
III-1 Global consumption pattern of chitosan
III-2 Key factors and driving forces for the global development of chitosan
LIST OF TABLES
Table 1 Estimation on total production cost of chitosan (Unit: RMB/kg chitosan product Time: June-06)
Table 2 The production cost from chitin to chitosan (Time: June of 2006)
Table II-3-1 Theoretical consumption of raw materials (industrial grade)
Table II-3-2 Theoretical consumption of raw materials (food grade)
Table II-4-1 The unit consumption of shell for regular specifications
Table II-4.1-1 Estimation on the cost of raw materials (Industrial grade, 70% DAC degree)
Table II-4.1-2 Estimation on the cost of raw materials (Industrial grade, 85% DAC degree)
Table II-4.1-3 Estimation on the cost of raw materials (Food grade, 90% DAC degree)
Table II-4.1-4 Estimation on the cost of raw materials (Food grade, 95% DAC degree)
Table II-4.1-5 Cost structure of raw materials (Time: June2006)
Table II-4.2-1 Estimation on manufacturing cost of industrial grade chitosan (70% DAC degree)
Table II-4.2-2 Estimation on manufacturing cost of industrial grade chitosan (85% DAC degree)
Table II-4.2-3 Estimation on manufacturing cost of food grade chitosan (90% DAC degree)
Table II-4.2-4 Estimation on manufacturing cost of industrial grade chitosan (95% DAC degree)
Table II-4.4-1 Estimation on total production cost of chitosan (Unit: RMB/kg chitosan product Time: June-06)
Table II-4.4-2 Cost structure of chitosan production (Time: June 2006)
Table II-4.5-1 The production cost from chitin to chitosan (Time: June 2006)
Table II-4.6.4-1 Estimation on costs of raw material in Jiangsu Xincheng (70% DAC degree)
Table II-4.6.4-2 Estimation on costs of raw material in Jiangsu Xincheng (90% DAC degree)
Table II-4.6.4-3 Estimation on manufacturing cost of industrial grade chitosan in Jiangsu Xincheng (70% DAC degree)
Table II-4.6.4-4 Estimation on manufacturing cost of food grade chitosan in Jiangsu Xincheng (90% DAC degree)
Table II-4.6.4-5 Profit estimation on chitosan in Jiangsu Xincheng (70% DAC degree)
Table II-4.6.4-6 Profit estimation on chitosan in Jiangsu Xincheng (90% DAC degree)
LIST OF FIGURES
II-2 Flow chart of chitosan production