Food safety inspection market is at the initial stage of outbreak growth

Recently, the issue of food safety broke out in succession. The Daan gene involved in the food safety inspection business has become a hot spot in the market. Dae An Gene and Sanyuan Technology Co., Ltd., a joint venture established by Guangdong Dayuan Food and Drug Safety Technology Co., Ltd., is engaged in the research and development of food security products. The company holds 40% of the shares.

Analysts believe that the market for food security screening is at least trillions of yuan, but it has not been fully developed. The company also believes that the current food safety testing market is at the initial stage of explosive growth.

The trillion market still needs to be dug

CCID predicts that the Chinese testing market will still maintain a growth rate of more than 15% in the next few years, of which private inspection institutions will increase by more than 30%. With the growth of exports, the prevalence of technical trade barriers, and the increase in consumer demand for products, the implementation of corresponding policies and regulations will determine that the testing market will have a vast space. In the entire inspection industry, food safety testing has the greatest demand and development potential.

Shuanghui's chairman Wan Long once stated that the “full-industry inspection” of lean meat for pork slaughtering should cost 600 billion yuan a year, and if the farming link is also tested, the cost will double. From this point of view, if coupled with the detection of beef and mutton, the potential market for clenbuterol detection in the entire meat industry can reach 2 trillion yuan. With the addition of melamine, poisonous blood, non-food coloring, pesticide residue and nuclear radiation testing items, food safety testing space will be several times.

From the perspective of national policies, the intensity of food safety inspections has recently increased. On April 22, the General Office of the State Council issued the “Notice of the State Council to Severely Crack Down on the Illegal Addition of Food”, urged the food production and business unit to improve the inspection system, encrypt the frequency of self-inspection, popularize and apply the rapid inspection and screening technology, and increase the sampling efficiency. Yang Gang, deputy director of the General Administration of Quality Supervision, Inspection and Quarantine, said in a meeting that it will increase investment in grassroots quality and safety inspections throughout the country and improve the working conditions and detection levels at the grassroots level. This seems to indicate that the food safety inspection market will face great opportunities for development.

Regulatory standards determine market space

As of now, the food safety testing market has not been fully developed. A food industry analyst believes that, for a long time, the national food safety supervision system and standards have not been fully established, and the uncertainty of the market and profitability has caused the relevant companies to lack the enthusiasm for participation. With the increase of supervision, the state has begun to establish a food safety management system. However, many issues such as policy standards, corporate costs and industry access have led to the establishment of an orderly market that is not a short-term process.

It is understood that fast screening is the technical strength of Guangdong Dayuan. However, Zhou Xinyu, the general manager of Daan Gene, also has a rational view of the market. He said that investment in food safety inspections involves enterprise costs and terminal prices. Taking the pork industry as an example, lean meat quality testing will be conducted at a scale of 600 billion yuan, and the pig price will be much higher than the current situation. The size of the market space mainly depends on the government's regulatory standards.

Zhou Xinyu introduced that Guangdong Dayuan’s initial sales strategy is for government inspection departments. In previous years, "National Industrial and Commercial Inspection" also had explosive growth, sales had reached more than 40 million yuan. However, this situation has not been sustained. In recent years, the company has adjusted its sales strategy and started to face the government inspection department, food production companies and consumers.

The current situation of unclear policies does not prevent the market from paying attention to the future market space of the food safety industry. Su Xuejing, an analyst at Changjiang Securities, believes that this area is almost completely dominated by policies. Under the conditions of unclear policy standards, the investment enthusiasm of enterprises will be constrained. Listed companies are also involved in this topic. ". However, the spontaneous demand for food safety will prompt a more rapid change in policy and promote the institutional improvement of the industry. Zhou Xinyu bluntly stated: "How big is the government's goal and how big the market is."

Strengthen technical reserves to be harvested

According to the Daan Gene Annual Report, Guangdong Dayuan's sales revenue in 2010 was 121.577 million yuan and net profit was 687,300 yuan. Despite its minimal impact on Daan's genetic consolidation, this achievement has ranked first in the field of food security. Zhou Xinyu stated that although it is expensive to invest in, the current capacity of Guangdong Dayuan is much larger than sales.

The market is unclear. Guangdong Dayuan regards R&D as its top priority to occupy a technological commanding point through continuous investment in R&D. At present, the company has invested 120 million yuan in the Guangzhou High-tech Zone to build a production base integrating research, development, production and application. The reagent industrialization base covers an area of ​​27,156 square meters and has a total construction area of ​​more than 10,000 square meters. Including the national high-tech industrialization demonstration project. In January 2010, the company started the construction of an area of ​​40,000 square meters in the Sanshui Science and Technology Park in the National Hi-Tech Industrial Development Zone in Foshan, China's largest food and drug safety testing technology R & D and production base. In addition, the company and Sanyuan Technology, etc., jointly invested in the expansion of shares of Foshan Dayuan to further expand the food safety inspection business.

After six years of technical reserve, Guangdong Dayuan possesses rapid detection instruments and reagents suitable for routine inspection and entry control, as well as qualitative and quantitative detection instruments suitable for statutory confirmation. In addition, the company provides food and drug safety inspection and monitoring information systems, with the detection equipment to build an efficient inspection and monitoring system. At present, the company's product line includes hundreds of products such as pesticide residue detection series, veterinary drug residue detection series, toxic and hazardous product detection series, and microbiological rapid detection product series. For example, the current detection system for clenbuterol usually takes four to five hours. The Guangdong DaYuan rapid test card takes only 10 minutes.

On January 12, 2011, the US Food and Drug Administration (FDA) St. Louis Laboratories signed a procurement cooperation agreement with the Guangdong Provincial Institute for Drug Control and Guangdong Dayuan, and the rapid drug screening kit launched by the Guangdong Institute of Drug Control and Guangdong Dayuan took an international The first step. After the verification is passed, the FDA St. Louis Lab will recommend it to the U.S. government. At the same time as contract signing, Guangdong Dayuan immediately initiated the development of a new generation of fast screening kits that are more rapid, specific, and sensitive.