The technology innovation can help us achieve a balance between economic growth and environmental sustainability, and add value to the deep processing of agricultural products. Non-grain ethanol using corn straw as main raw material is a typical case in which technology plays a decisive role. We have gradually developed a package of patents and core technologies in this area, resulting in a continuous operation of the cellulosic ethanol pilot trial project. Some key indicators of the project, such as conversion rate and cost, are now leading the world. The low-carbon clean energy has been developed without sacrificing more grain, and there is still much room for cost reduction. We are working with such great partners as Novozymes and Sinopec to achieve this goal.
The 'Four in One' New Technology R&D and Integrated Innovation of Grain Reserve in which COFCO had partaked won the 2010 National Science and Technology Progress Award, and was applied in more than 1,000 grain depots across China. As a result, the loss rate decreased from 4% to 1% or even less, the storage rate increased from 70% to 99%, and the usage of chemicals reduced by 80%. We have carried out researches and development on the feed resources of low plant and animal protein in the past 20 years, generating economic benefits of more than RMB 12 billion yuan to the industry.
The product innovation oriented to consumer’s demand and linked with marketing can yield more direct business value. We have set up the Department of Innovation Management, COFCO Nutrition and Health Research Institute and other specialized agencies, as well as innovative food companies specializing in product innovation. A range of innovative products, such as "Fortune" sauce, "Lohas" fruit and vegetable juice, "Lohas" honey, "Lohas" cereal breakfast, "Tenone" cheese, "Lohas U " lactic acid bacteria fruit juice and DHA multi-grain oil, are being judged by the market and consumers.