Small package oil will become a new profit growth point for grain and oil.

Under the double pressure of declining soybean prices and sluggish consumer demand, the small packaging oil at the retail terminal is the only one left. The sales of sunflower oil and olive oil soon after Xiwang Food went on the market grew rapidly and achieved remarkable results. With the improvement of consumption level, the consumption of small packaging oil will gradually develop into subdivisions.

The annual reports issued by a number of grain and oil enterprises show that the grain and oil market is depressed. Last year's revenue fell 1.38 per cent to HK $93.239 billion, according to the 2014 annual report released by Cofco on March 26th. Dongling grain and oil also suffered heavy losses, with losses as high as 471 million yuan, down 423.89 percent from the same period last year.

Cofco attributed the downturn in the grain and oil industry to a "slowdown in macroeconomic growth" and "sharp fluctuations in commodity prices", which eventually hit the oilseed processing business. Dongling grain and oil also said that the sales prices of soybean oil and soybean meal were low, resulting in prices upside down, resulting in serious losses.

Sun Zhong, an analyst at China Grain Network, told the Beijing News that the grain and oil industry is indeed at a low ebb due to the impact of weak commodity prices and a downturn in the catering industry, but this does not mean that grain and oil companies can only "sit back and wait for death".

A reporter from the Beijing News noted that although there was a decline in performance, there was no shortage of "surprises" in Xiwang Food's annual report. In 2014, the operating income of new sunflower oil and olive oil reached 36.36 million yuan and 20.6 million yuan respectively, with gross profit margins of 33% and 54% respectively. Public information shows that the new sunflower seed oil and olive oil have been launched by Xiwang Food since the middle of last year.

Qilu securities analysis said that the new product has entered the stage of rapid delivery, and the sales revenue of sunflower oil and olive oil will rise from 5% of small packaging oil to 20%, 30% this year.

With regard to the sudden rise of new products, Xiwang Foods analyzed in the annual report that the entire consumption structure of edible oil has been further adjusted, and middle and high-end edible oils such as corn oil, sunflower oil, olive oil and tea oil have increasingly become the "new favorite" of consumers.

Sun Zhong also believes that after brand packaging and marketing investment, the price of small packaging oil is more stable and less affected. The consumption of small packaging oil is also gradually developing into subdivisions, from which enterprises can find new profit growth points.

Liu Xiaoran, deputy secretary general of the Corn Branch of the China Grain Industry Association, told the Beijing News that it is expected that the entire grain and oil market will not improve in 2015, but there is indeed a certain market for some high-end small packaging oils, such as sunflower oil and palm oil. it's worth developing.