On November 8, 2019,
Rising income level in the PRC has increased the purchasingpower of residents. Residents in the PRC are now more willing to dine out, thusbuffet, senior western food and other types of catering are becoming more andmore popular, boosting the catering market in the PRC. At the same time, thedemand for livestock has increased greatly, and some environmental problemshave arisen, such as randomly throwing away leftovers, randomly discarding deadlivestock and so on. In order to improve public health and achieve sustainabledevelopment, the Chinese government has been actively dealing with organicsolid waste such as food waste and carcasses to reduce environmental damage.
The mainland's catering market is growing rapidly, and thecollection of food waste is also rising at the same time, from 28 million tonsin 2013 to 46 million tons in 2018. However, most of the food waste in themainland of China has not yet been classified, and is mainly disposed inlandfills, processed as livestock feed or reprocessed as "gutter oil"back to the table. These treatment methods are not ideal for the environmentand people's health: improper landfill brings soil and groundwater pollution,pig breeding by food waste pose the risk of animal disease transmission, and"gutter oil" directly threatens people's health.
Therefore, the Chinese government has established along-term mechanism for the food waste treatment. In terms of domestic andcommercial food waste collection, the State Council of the PRC has issued‘Enhancing Management of Cooking Oil and Restaurant Waste (《關於加強地溝油整治和餐廚廢棄物管理的意見》)’ in 2010 to strengthenthe management of food waste collection from restaurants and institutionalcanteens, and supporting enterprises to adopt harmless and sustainable methods,such as anaerobic microbial degradation method and water heat treatment methodto treat food waste. Last year, the rate of food waste disposal was 11.2%. Itcan be seen that China's food waste treatment market is still in the earlystage of development. With the increase of food consumption and the growth ofcatering industry, the quantity of food waste is expected to continue to rise.With the support of national policies, China's food waste treatment market hasstrong growth and development potential in the future, and it is expected tofurther promote project investment in this market.
In addition to food waste, the increase in livestockproduction has also brought about a significant focus on the treatment of solidanimal waste in the mainland of China. In view of this, the Chinese governmenthas put forward a series of regulations and policies for the treatment ofanimal solid waste. In 2014, the Ministry of Agriculture formulated “Guiding Opinions of the General Office of the State Council on Establishinga Mechanism for Harmless Treatment of Dead Livestock and Poultry (《國務院辦公廳關於建立病死畜禽無害化處理機制的意見》)” to promote theharmless treatment of dead animal carcasses and related wastes. On the otherhand, public concern to food safety has also increased. In view of the outbreakof African swine fever in 2018, the State Council of the PRC has issued the “Notice of the General Office of the State Council on the Preventionand Control of African Swine flu (《國務院辦公廳關於進一步做好非洲豬瘟防控工作的通知》)”, prohibiting feeding pigs with food waste, and stipulating thatdead pigs must be treated innocuously. On the one hand, these policies andmeasures respond to the public's concerns on food safety and environmentalprotection, and promote the rapid development of animal solid waste treatmentmarket. At the same time, Shenzhen Leoking Environmental Group, which has theability to treat food waste and animal solid waste, has become one of theleading enterprises in China.
R&DCenter, Experimental Base of Leoking Environmental Group
Leoking Environmental Group specializes in the organicsolid waste treatment industry for over 18 years, its R&D team obtainsseveral proprietary core technologies, including LCJ super anaerobic microbialdegradation and biogas production system, autoclave dehydration reactor andautomated ultra high pressure waste pressing device. Among which, the LCJ superanaerobic microbial degradation and biogas production system accelerates thefermentation process of food waste to a rate that triples that of the conventionalmicrobes used in anaerobic processes in the industry. The autoclave dehydrationreactor, which relies on jacketed indirect heating, significantly reduces thewater content in the treated residue compared to that of conventional reactorsused in the industry.
In terms of treatment capacity, Leoking Environmental wasthe largest food waste treatment services provider in the Greater Bay Area,with treatment capacity of 1,830 tonnes per day. The group had constructed anintegrated organic waste treatment environmental park project in GuangzhouCity, Guangdong Province, which is expected to become the largest integratedorganic waste treatment facility in the world in terms of treatment capacity at2,040 tonnes per day once we begin operation. Meanwhile, Leoking Environmentalowns 5 animal solid waste treatment projects in Guangdong province. As atDecember 31, 2018,our Group was thelargest animal solid waste treatment services provider in the PRC in terms ofthe aggregated daily treatment capacity of all projects as stipulated under theconcession agreements for projects in operation, under construction and inplanning stage, with treatment capacity of 480 tonnes per day.
Thepicture is the Guangzhou project invested, constructed and operated by LeokingEnvironmental,
which is expected to become the largest urban organic wastetreatment facility in the world.
At present, the PRC’s food waste and animalsolid waste treatment industry is at the stage of “operation + productivityexpansion”. Some service providers started to launch business expansion plansby applying merger and acquisition activities in order to expand their businessscale and geographical coverage. In the future, companies with good reputation,brand awareness, advanced technologies, and strong financial position arelikely to speed up the pace of expansion, Leoking Environmental with leadingrole is predicted to continuously seize the opportunity and create advantage.
