In 2009, the export tax rebate policy on alcohol alcohol industry, the temporary boost, with liquor consumption tax adjustment and the State Reserve Corn Auction direct impact on the alcohol industry, although the domestic technology advances, scale enterprises in order to gain greater return on investment to increase production to mention quality, but the financial crisis, rising raw material prices, shrinking downstream demand, environmental policy pressure and other negative factors, so that by 2010 China's road of alcohol or there will be more variable. From the international economic environment, 2010, the international economy will be in a stabilized and recovery, policy and market mechanisms to stimulate the article reported that alternate sources of Chinese wine, recovery with a bright future, but there is still uncertainty. Experts predict that the world economy in 2010 will achieve slow growth, international trade will slow recovery, but the intensification of trade protectionism will make trade more competitive. There will be no significant increase in international investment, commodities will still be chasing international funds, the main producing areas of raw materials such as alcohol and then experienced natural disasters, or will occur in 2009 under the speculation of futures prices of raw materials.
    Fuel ethanol import tariffs will be reduced or the impact of fuel ethanol business
    January 1, 2010, the country will fuel ethanol import tariff from 30% to 5%. Fuel ethanol import tariff reduction is an opportunity or a challenge? Sugar from Columbia Association (Asocana) released data show that in 2009 the first 11 months of ethanol production in Colombia over the same period in 2008, an increase of 23.4216 million liters of 26% to the 29.6024 million liters.
    Through the development of alcohol industry, more than three years in Colombia in a short period of time for production of alcohol from a medium-sized Latin American country among the second-largest ethanol producer in the Chinese wine Zhuanzhai the China Wine News, second only to its ethanol production in Brazil.
    Reduction of tariffs, may alleviate the problem of the shortage of domestic fuel, but to fuel ethanol in Brazil and Colombia, large country has facilitated the export of fuel ethanol, which some of our business is bound to impact fuel ethanol, to early to seek countermeasures.
    Consumption of alcohol will be re-interpretation of the price or prices in 2009 Edition
    In 2010, China's corn market supply is still loose, the Government have the ability to control prices, but affected by the policy, in the short term the price of corn is difficult or easy to rise, so the experts predict that 2010 will be Xianyanghouyi corn prices, but overall stable, Corn Index is expected to run throughout the year range in 1750 yuan -1850 yuan.
 
    China and South Asia by the major cassava-producing countries cut of Thailand and Vietnam in 2010, cassava prices or to maintain the shock upstream of the state.
   Experts predict that by the third quarter of 2010, molasses prices are likely to break 1,000 mark.
   Alcohol or slowly rising downstream demand
    In 2010, China's chemical industry has experienced two consecutive years of recession in 2009 will continue the recovery process, with the macroeconomic warming, the demand for alcohol or rise slowly.
    Despite the liquor consumption tax adjustment and the state to crack down on "drunk driving" and other policy implications, our spirits remain high growth is expected to stabilize the rigid demand for alcohol.
    National environmental management efforts, will directly affect the alcohol industry operating rate, underemployment in the industry, the alcohol will lower stock prices given their strong support. So, in 2010, the price of alcohol will not be dropped, but remain high running time will not last long.
                                        Author: HeBing