[Breaking News] Quick Overview of the Northeast China Rice Oil Industry Survey

Editor’s Note: General Secretary Xi Jinping attaches great importance to food security and has emphasized the need to “ensure the safety of grain and other important agricultural and sideline products.” Ensuring the effective supply of oilseed crops such as edible oil and protein feed is a key task in the development of modern agriculture during the 14th Five-Year Plan period. Throughout the 14th Five-Year Plan and beyond, China will continue to face risks of supply shortages for soybeans, edible vegetable oils, and protein feed. In recent years, China’s agricultural production has accelerated, significantly enhancing the capacity to supply key agricultural products such as grain, cotton, oilseeds, sugar, and meat, thereby playing a crucial stabilizing role in maintaining overall economic and social development. However, structural supply-side issues persist in certain agricultural sectors, most notably the heavy reliance on foreign imports for edible oil and protein feed. Therefore, taking effective measures to address the shortcomings in oilseed supply, strengthening the capacity to guarantee oilseed supplies, adopting a strategy of “developing multiple oil sources and cultivating new ones,” closing the domestic oilseed gap, and reducing dependence on imported soybeans have become critical tasks for achieving high-quality development of the oilseed industry.

Recently, a research team under the Oilseed Industry Branch of the China Association of Leading Agricultural Industrialization Enterprises—comprising a large-scale survey and the establishment of a think tank on the rice oil industry—visited Northeast China. The team conducted field visits to seven key enterprises and engaged in face-to-face discussions to gain an in-depth understanding of these companies’ perspectives, recommendations, and the bottlenecks they face in developing the rice oil sector. The surveyed enterprises encompassed both crude (semi-finished) and refined (small-packaged) rice oil processors, spanning small, medium, and large production scales. The mission provided a preliminary assessment of the current state of the rice oil industry in the Northeast market, including the latest trends in the production and sales of rice bran, crude oil, and finished products, as well as market demand and the challenges hindering the industry’s move toward high-quality development.

In Japan, rice bran oil is designated as the exclusive cooking oil for school lunch programs in primary and secondary schools nationwide. Subsequently introduced to Western and other developed countries, rice bran oil has been endorsed by the American Heart Association (AHA) as a healthy cooking oil.

China’s paddy rice output is approximately 200 million tonnes, yielding nearly 20 million tonnes of rice bran—roughly equivalent to the country’s soybean production. Rice bran has a similar oil content to soybeans; however, China’s utilization rate for rice bran stands at only about 30%, far below that of India (80%) and Japan (100%). If rice bran were more effectively utilized, it could significantly enhance China’s self-sufficiency in edible oils. Furthermore, supplementing this with woody oilseed crops such as camellia, walnut, peony seed, cyperus esculentus, Chinese tallow tree, palm, and animal fats would help alleviate the country’s supply–demand imbalance in oils and fats.

In addition, the production of rice bran oil in China has a long history; as early as the 1950s, comprehensive utilization efforts focused on extracting oil from rice bran were initiated. In the 1970s, with the support of national policies, a nationwide resurgence of integrated utilization centered on oil extraction from rice bran and corn germ once again took hold, concurrently giving rise to a growing domestic demand for rice bran oil. At one point, rice bran oil output exceeded 10,000 metric tons, playing a positive role in alleviating the then-severe shortage of edible oils and fats in the country. However, due to the relatively small scale of rice mills at the time, large-scale production of rice bran oil proved difficult to achieve. Moreover, shortcomings in rice bran preservation and refining technologies further constrained output, causing it to remain stubbornly around the 10,000-ton mark.

As public awareness of health continues to grow, natural vegetable oils such as rice bran oil are gradually replacing traditional animal fats and have become the preferred choice for healthy eating. The rice bran oil industry is poised to enjoy even broader market prospects. At the same time, with the steady increase in urban populations and rising living standards, consumption of rice bran oil is expected to continue expanding. Moreover, amid growing Sino–foreign exchanges, rice bran oil—a quintessentially Chinese specialty—has won favor among many international consumers, and the development of overseas markets will create new opportunities for the industry’s growth.

In 2022, China’s rice oil production reached approximately 600,000 tonnes, indicating strong growth momentum and promising market prospects for the industry. However, there is still a gap between the current state of the sector and the national grain and oil strategy as well as the requirements for high-quality development. To establish a solid market position, companies must carve out a competitive edge in an intensely competitive environment and build their core competencies. In terms of market positioning, firms should conduct in-depth research into consumer needs, actively solicit feedback and suggestions, and continuously enhance product and service quality in response to those needs. Regarding product quality, companies should strengthen their R&D capabilities and production technologies to consistently introduce higher-quality offerings. As for brand image, enterprises should develop a distinctive brand identity, prioritize brand marketing, and elevate consumer perception and awareness of their brand. Only by making robust efforts in these areas can rice oil companies truly achieve their business objectives.

[Corporate Profile Showcase]

Huachuan County Huayu Grain and Oil Co., Ltd. was established in 2002 and is a private enterprise primarily engaged in the processing and production of rice-bran oil and refined Northeast Chinese rice. The company operates two daily-processing lines for extracting oil from 400 metric tons of paddy per day, three daily-processing lines for refining oil from 100 metric tons of paddy per day, three annual-processing lines capable of handling 300,000 metric tons of refined Northeast Chinese rice, one drying tower with a daily processing capacity of 500 metric tons, and storage facilities that can accommodate 100,000 metric tons of marketable grain. The company’s annual output value can reach RMB 1 billion.

Visit the Product Exhibition Hall of Huachuan County Huayu Grain and Oil Co., Ltd.

Fushi Rice Industry Group was founded in 2002 and comprises two subsidiaries: Fushi Rice Industry and Yiji Fushi Rice Industry. Yiji Fushi Rice Industry equips its production lines entirely with imported machinery, including Swiss Bühler color sorters and Japanese Satake polishing machines, boasting an annual processing capacity of 50,000 metric tons. Within the Fushi Rice Industry Group, Huachuan Fushi Rice Industry commenced operations in April 2006, with a daily rice-processing capacity of 750 metric tons and an annual capacity of 360,000 metric tons; it also processes 45,000 metric tons of rice bran through deep processing, generating nearly RMB 1 billion in sales. The company is steadfastly advancing along the path of a fully integrated, end-to-end value chain for rice processing and comprehensive utilization of paddy rice, rooted in the fertile black soil of Northeast China and committed to developing into an eco-friendly, agro-industrial processing enterprise. At the same time, it pursues innovation in scientific breeding and advanced technologies such as refined rice oil, continuously enhancing its technological content, expanding its operational scale, and broadening online e-commerce channels, thereby providing consumers with more abundant, higher-quality, safe, and trustworthy rice and edible rice oil.

Production Workshop of Fushi Rice Industry Co., Ltd. in Huachuan County

Huachuan County Xinsheng Oil Products Co., Ltd., established in 2019 and located in Jiamusi City, Heilongjiang Province, is a company primarily engaged in the processing of agricultural and sideline food products. The company’s registered capital is RMB 3 million.

Exchanged views with the person in charge of Huachuan County Xinsheng Grain and Oil Co., Ltd.

Huachuan County Xianghe Oil and Rice Co., Ltd. was established in 2006 as a crude oil and fat processing plant. Its business scope includes the production of edible vegetable oil (semi-refined), the procurement of rice, corn, and soybeans, and the sale of grain.

Huachuan County Xianghe Oil and Rice Co., Ltd.

Yihai (Jiamusi) Grain and Oil Industry Co., Ltd. was established in 2006. Its business scope includes the processing of paddy rice, rice bran, and soybeans, as well as the sale of finished products; the production and sale of silica and activated carbon; the procurement and wholesale of soybean oil, palm oil, rice bran oil, corn germ oil, peanut oil, sesame oil, sunflower oil, rapeseed oil, and cottonseed oil; the procurement and wholesale of grains (paddy rice, corn, wheat, and miscellaneous grains) and soybeans; and the procurement and wholesale of agricultural by-products such as rice bran and feed ingredients (oilseed meals and corn by-products).

Research Visit to Yihai (Jiamusi) Grain and Oil Industry Co., Ltd.

Jilin Heliang Grain and Oil Industry Co., Ltd. was established in 2014, succeeding Jilin Heliang Economic and Trade Development Co., Ltd. Its core business is the processing and marketing of rice. In 2017, the company was rebranded as Jilin Heliang Grain and Oil Industry Co., Ltd., and subsequently invested in the construction of a new production facility, which officially commenced operations in October 2018. The company primarily uses rice bran as raw material and employs an advanced vacuum-evaporation leaching process to extract crude rice-bran oil and its co-product, rice-bran meal. Thanks to the high quality of the raw material—rice bran—the resulting crude rice-bran oil and rice-bran meal are rich in amino acids, proteins, and a variety of trace elements, making them indispensable, high-quality feed ingredients. Moreover, the “gamma-oryzanol” contained in edible rice-bran oil is unmatched by other edible oil products.

The company occupies a total area of 17,977 square meters and has secured initial total investment exceeding RMB 15 million. Its existing production line is capable of processing 300 metric tons of rice bran per day; following an expansion in 2021, daily processing capacity increased to 500 metric tons. In 2021, the company’s total assets amounted to RMB 35.5169 million, with annual rice-bran processing reaching 120,000 metric tons, yielding 20,000 metric tons of crude rice-bran oil and 98,000 metric tons of rice-bran meal per year. In 2022, the company extended its production processes by constructing a physical deacidification line for rice-bran oil, resulting in a year-on-year increase of more than RMB 2,000 per ton in sales revenue from low-acid crude rice-bran oil and generating RMB 280 million in sales that year. As of September 2023, the company has already recorded sales of RMB 242 million, with projections indicating that full-year sales for 2023 could surpass RMB 300 million. This steady, stepwise growth in annual sales serves as the clearest evidence of the company’s robust development.

Jilin He Liang Grain and Oil Industry Co., Ltd.

Liaoning Agricultural Science and Technology Co., Ltd. was formerly the Panjin Xingwang Oil Factory, established in 2002 with a registered capital of RMB 62 million and covering an area of 45,000 square meters. It is a technology-driven biotechnology enterprise that integrates the research, development, production, and sales of rice bran and its by-products.

Panjin Xingwang Oil Factory uses rice bran as its raw material and is one of the few domestic enterprises that operate a fully integrated, end-to-end processing chain. Its production process encompasses oil extraction from raw materials, crude oil refining, and in-depth processing of by-products, resulting in a comprehensive product portfolio that includes extruded rice bran, crude rice bran oil, rice bran meal, refined rice oil, rice bran wax, natural ferulic acid, oryzanol, and other products. The plant has an annual processing capacity of 200,000 tonnes of rice bran, 100,000 tonnes of refined crude rice bran oil, 10,000 tonnes of “”-branded small-packaged edible rice oil (which has already obtained ISO 9001 certification), 400 tonnes of natural ferulic acid, 100 tonnes of oryzanol, and 500 tonnes of rice bran wax.

Panjin Xingwang Oil Factory is currently the largest domestic producer of refined rice oil and natural ferulic acid, with refining technology that ranks among the best in China. Its key partners include well-known enterprises such as Yihai Kerry Group (Golden Dragon Fish). The factory’s own brand, “,” offers small-packaged oils whose sales have been steadily increasing year after year across the province and throughout northern China, with plans for nationwide expansion. In addition, the company collaborates on OEM projects with leading domestic firms such as Suning.com Group, Longping High-Tech, and Hema Fresh. Ferulic acid is a byproduct of the refined-oil production process that undergoes further deep processing to serve as a raw material for natural flavorings—specifically vanillin—and is primarily used as an additive in premium food products, including those from Nestlé, Häagen-Dazs, and Ferrero. In recent years, Xingwang Oil has continuously invested in R&D, focusing on the deep processing of byproducts within the industry value chain, with ongoing advancements in the development of refined rice-bran wax, natural octacosanol, ceramides, and squalene.

Liaoning Aever Co., Ltd.