In this report, most effort is made to the most popular method for chitin production of the four different technologies for extracting chitin we have found with info from various sources, is carapace method, in which shell of shrimp or crab is used as the raw material.
How we work out the production cost and the profit level of China’s chitin producers?
Production cost= manufacturing costs + management costs
The flow chart of major technology (carapace method), and the theoretical unit consumption and unit cost of each raw material are worked out, based on more than 120 research papers on chitin production published in 1991~2005 and 18 patents about chitin production confirmed in 1997~2005.
The manufacturing cost covers the costs of raw materials, utilities, labor, packaging cost, depreciation and maintenance of equipments. In this report, it also covers the cost for the treatment of waste water.
Shell material, hydrochloric acid and sodium hydroxide are main materials and they take more than 90% of raw material costs, so the price fluctuation range of shell material and price difference of HCl/NaOH in different regions are the major work focuses for cost of raw materials. Many chitin producers have been contacted to verify the unit consumption of raw material in actual production.
Besides, factors affecting chitin and how they affect chitin production are also explored.
Usually, we calculate the management cost by integrating the following items:
- Salary Cost of Management Staffs and Other Auxiliary Staffs.
- Materials Cost for Management
- Financial Cost (such as interest on loan)
- Transportation Cost
- Distribution Cost
In order to find the profit in Chinese manufacturers, two factories, Zhejiang Aoxig Biotechnology Co., Ltd. (Zhejiang Aoxing) and Jiangsu Lianyungang Keda Biological Products Co., Ltd. (Lianyungang Keda) are chosen for case sturdy, because they adopt different shell material to produce two grades of chitin products – food grade and industrial grade.
Then a conclusion of profit is draw based on the comparison between these two producers
Introduction and Methodology
I BRIEF INTRODUCTION OF CHITIN INDUSTRY
I-1 Characters of Chitin
I-2 International Situation of Chitin Industry
I-3 Domestic Situation of Chitin Industry
II BRIEF INTRODUCTION TO VARIOUS PRODUCTION METHODS OF CHITIN
III INTRODUCTION OF THE MOST POPULAR METHOD IN DETAILS
III-1 Brief Description of Production Process
III-2 Flow Chart of Chitin Production
III-3 Theoretical Model of Raw Material
III-4 Factors Affecting Production of Chitin
IV ESTIMATION ON THE COST AND PROFIT OF CHITIN PRODUCTION
IV-1 Estimation on Raw Material Cost
IV-2 Estimation on Manufacturing Cost
IV-3 Estimation on Management Cost
IV-4 Estimation on Total Production Cost
IV-5 Estimation on Profit in Chinese Manufacturers
IV-5.1 Some Background Information?
IV-5.2 Profit Estimation in Zhejiang Aoxing
IV-5.3 Profit Estimation in Lianyungang Keda
IV-5.4 Comparison between Zhejiang Aoxing and Liayungang Keda
V FINDINGS AND CONCLUSION
VI PROFILES OF MAJOR MANUFACTURERS
VI-1 Summary of Domestic Production Situation of Chitin
VI-2 Profiles of manufacturers
VI-2.1 Zhejiang Aoxing Biotechnology Co., Ltd.
VI-2.11 Shandong Huantai Goldenlake Carapace Products Co., Ltd.
LIST OF TABLES
Table 1 Estimation on total production cost of chitin (Unit: RMB/kg chitin product; Time: April-06)
Table III-3-1 Theoretical consumption of raw materials (food grade)
Table III-3-2 Theoretical consumption of raw materials (industrial grade)
Table IV-1-1 Price of NaOH in domestic marketplace
Table IV-1-2 Estimation on the cost of raw materials (food grade, using imported shell material as raw material)
Table IV-1-3 Estimation on the cost of raw materials (food grade, using homemade legs of shrimp/crab as shell material)
Table IV-1-4 Estimation on the cost of raw materials (industrial grade, using homemade shell materials as raw material)
Table IV-1-5 Cost structure of raw materials (Time: April 2006)
Table IV-2-1 Estimation on manufacturing cost of food grade chitin (using imported shell of crab as shell material, price: RMB8.0/kg)
Table IV-2-2 Estimation on manufacturing cost of industrial grade chitin (using homemade shell material, price: RMB4.0/kg)
Table IV-4-1 Estimation on total production cost of chitin (Unit: RMB/kg chitin product Time: April-06)
Table IV-5.2-1 Estimation on costs of raw material in Zhejiang Aoxing
Table IV-5.2-2 Estimation on manufacturing cost of chitin in Zhejiang Aoxing
Table IV-5.2-3 Profit estimation on chitin in Zhejiang Aoxing (Time: April 2006)
Table IV-5.3-1 Estimation on costs of raw material in Lianyungang Keda
Table IV-5.3-2 Estimation on manufacturing cost of chitin in Lianyungang Keda
Table IV-5.3-3 Profit estimation on chitin in Lianyungang Keda (Time: April 2006)
Table IV-5.4-1 Comparison between Zhejiang Aoxing and Lianyungang Keda (Time:April 2006)
Table VI-1-1 Active chitin producers
Zhejiang Aoxing Biotechnology Co., Ltd., Zhejiang Golden-shell Biochemical Co., Ltd., Jiangsu Baolong Group Yancheng Baolong Biochemical Products Co., Ltd, Zhejiang Taizhou Fuda Oceanic Biochemical Industry Co., Ltd.,Jiangsu Lianyungang Keda Biological Products Co., Ltd., etc.