China: Announcement on Digitalization of Food Industry

Date: 2025-Jun-30 Source: View: 10

Report Highlights:

On June 10, 2025, seven ministries of the People's Republic of China (PRC) jointly announced a nation-wide acceleration of digitization of the food industry. The announcement sets digitization targets for China's food industry for 2027 and 2030, and includes implementation plans and projects for key processes and services.

Report Summary:

On June 10, 2025, seven ministries of the People's Republic of China (PRC) announced (link in Chinese) an implementation plan for digitalization of the food industry in the PRC. The ministries include the Ministry of Industry and Information Technology, the Ministry of Education, the Ministry of Human Resources and Social Security, the People's Bank of China, the State Administration for Market Regulation, the National Grain and Reserves Administration, and the National Statistics Bureau.

While not directly linked, in October 2024, China's Ministry of Agriculture and Rural Affairs published China's "National Smart Agriculture Action Plan" (see GAIN CH2024-0148) which established the country's five-year strategy covering the years 2024 through 2028 to better involve various digital technologies into agricultural production practices.

The newest plan for China's food industry sets ambitious targets for technological transformation across the sector and would involve integrating various digital technologies (e.g., artificial intelligence, blockchain technologies, etc.) into the supply chain to purportedly enhance efficiency, productivity, and sustainability. By 2027, the plan aims to achieve an 80 percent digitalization rate for business management among key food enterprises. Additionally, both the digital control rate of key processes and the adoption rate of digital research and development and design tools for large-scale food enterprises are expected to reach 75 percent.

The infrastructure development goals are equally comprehensive, with plans to cultivate more than 10 smart factories and construct more than five high-standard digital industrial zones. The initiative also focuses on developing a group of high-level digital transformation service providers specifically for the food industry.

Current statistics reveal that key industrial food enterprises in China have already made significant progress, with digital control rates for key processes at 63.3 percent and adoption rates for digital research and development and design tools at 72.8 percent. These figures demonstrate the foundation upon which the 2027 targets will be built.

By 2030, the plan envisions a more comprehensive transformation where next-generation information technology will be widely implemented across all operational aspects and throughout the complete supply and processing chain of large-scale food enterprises. This long-term vision includes establishing digitalized industrial clusters in the food sector that will achieve international competitiveness, asserting to position the PRC as a global leader in food industry digitalization.

Focusing on the development goals, the plan deploys and implements four major actions including:

  • Innovative application of information technology,

  • Cultivation of new models and new formats,

  • Quality upgrading of the industry,

  • Building a foundation for empowerment.

The major tasks focus on:

  • Promotion of new technology applications to solve problems using digital models,

  • Development of digital database to advance safety levels and build response capacity, coordination of supplies across industries to build smart industry supply chains,

  • Collaboration with international organizations to promote standards development,

  • Establishment of a traceability system to build quality and safe monitoring system for consumers.

The digitalization strategy includes specific measures and requirements tailored to various industry categories, including dairy manufacturing, brewing, grains and oil processing, bakery, canned foods, food additives manufacturing, and food biomanufacturing, among others. Each sector receives targeted guidance to ensure the digitalization efforts align with their unique operational needs and challenges.

Notice of the Ministry of Industry and Information Technology and other Seven Ministries on issuing the "Implementation Plan for Digital Transformation of the Food Industry"

To the authorized departments of industry and information technology, education departments (education committees), human resources and social security departments (bureaus), market supervision bureaus (bureaus, commissions), grain and material reserve bureaus (grain bureaus), data management department, Shanghai headquarters of the People's Bank of China and its branches in autonomous regions, municipalities directly under the Central Government, independently planned cities, Xinjiang Production and Construction Corps, and provinces:

Implementation Plan for Digital Transformation of Food Industry

The food industry is a pillar industry of the national economy and a basic livelihood industry. It plays an important role in stabilizing growth, ensuring supply, benefiting people's livelihood and promoting development. It is an important material support for satisfying people's yearning for a better life. This plan is formulated to implement the "Action Plan for Digital Transformation of Manufacturing" issued by the General Office of the State Council, actively adapt to and lead a new round of scientific and technological revolution & industrial transformation, accelerate the promotion of new industrialization, guide the digital transformation and upgrading of the food industry, and promote the high-quality development of the food industry.

1. Overall Requirements

Guided by President Xi Jinping's thought on Socialism with Chinese Characteristics for a New Era and thoroughly implementing the guiding principles of the 20th National Congress and the second and third plenary sessions of its 20th Committee Conference, this initiative fully embraces the new development principles. It aims to implement national new industrialization and carry out action of digitalization driven consumption of "three products initiatives".

With the deep integration of new-generation information technology and the food industry as the theme, and intelligent and advanced manufacturing as the main focus, efforts will be made to strengthen the synergy between software and hardware, build enabling platforms, and enhance supporting services. The goal is to drive comprehensive transformation in technological models, production methods, business models, and enterprise structures.

This will enhance product innovation and creativity, brand value development, and the food industry's role in shaping consumption trends. It seeks to foster new growth drivers for consumption, add strong internal vitality into the new industrialization of the food industry, and achieve the digital transformation, upgrading, and high-quality development of the food sector.

By 2027, the adoption rate of digital management in key enterprises will reach 80%, the numerical control rate of key processes and the adoption rate of digital R&D and design tools in enterprises above designated size will reach 75%. The integrated innovation and application capabilities in the areas of smart design, digital R&D, flexible manufacturing, supply chain collaboration, etc. will be greatly enhanced.

More than 10 smart factories will be cultivated, more than 5 high-standard digital industrial zones will be built, 100 typical application scenarios for digital transformation and 1,000 digital demonstration (pilot) projects will be implemented step by step. The standard and specification system for basic rules, scenario application, technical equipment, etc. to meet the fundamental needs of digital transformation in the industry will be established. A group of high-level digital transformation service providers for the food industry is cultivated and a series of advanced and applicable digital solutions is set.

By 2030, the new generation of information technology will be popularized and applied in all aspects of food chains in large-scale food enterprises, a number of digital industrial clusters in the food industry with international competitiveness will be cultivated, the level of innovation and application of information technology will be effectively improved, new models and new formats will flourish, the support for quality improvement and upgrading will be significantly enhanced, the foundation for digital development will be continuously consolidated, and the level of high-end, intelligent, and green food industry will be significantly improved.

2. Key Tasks

(I) Action Plan for Innovative Application of Information Technology

1. Promote the research, development, and application of new technologies. Organize food companies, professional service providers, software and hardware companies, and equipment manufacturing companies to use new generation information technologies such as 5G, big data, cloud computing, and blockchain to jointly develop technical solutions such as intelligent monitoring and traceability of food production, "5G + Industrial Internet" in food industrial zones, and smart management of raw material production and supply. Encourage innovative application of artificial intelligence technology and enhance the supply of large model technology products of artificial intelligence in the sub-divided food industry. Support the use of technologies such as virtual reality to enrich product display forms and promote the "living inheritance" of cultural heritage.

2. Promote advanced technologies. Target the dual upgrade needs of industry and consumption, smooth the "technology-scenario-industry" cycle, cultivating a number of advanced, applicable, mature, easy-to-use, high-quality and low-priced digital transformation solutions, and create a number of "small, fast, light, and accurate" digital technology products. Relying on challenge-based mechanisms for intelligent manufacturing system solutions, strengthen efforts to tackle key problems in developing system solutions, including equipment, software, and data models in sub-sectors. Encourage local governments and industries to carry out artificial intelligence empowerment actions and promote the in-depth application of artificial intelligence large model technology in research and development, pilot production, production, management, etc.

3. Promote the value-added data resources. Sort out important links such as food raw material supply, R&D design, production and manufacturing, market sales, quality traceability to form lists of data elements, knowledge models, tool software, etc. Support the deep mining, sequencing flow, and efficient use of data resources, and use data elements to drive the improvement of the resource allocation capacity and level of the industrial chain. Encourage the construction of secondary nodes for industrial Internet identification resolution in subdivided industries to facilitate data management inside and outside the enterprise. Encourage enterprises to use 5G, time-sensitive networks (TSN) and other technologies to transform and upgrade networks, improve the security protection level of industrial control systems, and enhance network safety, data security monitoring, early warning, and emergency response capabilities.

4. Explore typical application scenarios. Based on typical process industries such as beverage manufacturing, edible vegetable oil processing, and dairy product manufacturing, labor-intensive industries such as brewing, canning, baked food manufacturing, aquatic product processing, and refined tea processing, and emerging fields such as pre-made food manufacturing and food biomanufacturing, with different characteristics and differentiated needs, sort out the digital transformation scenario maps of subdivided industries, compile guidelines for the integrated application of the industrial and Internet in subdivided industries, accurately solve the difficulties and bottlenecks during the transformation, and accelerate the innovative application of information technology.

(II) Action Plan to Cultivate New Business Models and Emerging Industry Forms

5. Develop flexible manufacturing for small-batch and multi-variety products. Support enterprises to set up minimum production units and modular, flexible, and visual production systems to achieve flexible process switching, intelligent production scheduling, and optimal resource allocation. Encourage in-depth mining and rational development of data on food characteristics, consumer preferences, nutritional characteristics, fashion trends, etc., enhance consumer participation in the entire product life cycle, quickly respond to demand through agile supply chains, and transform from a "design-production-consumption" model to demand-driven, supply-demand coordination, and demand creation, and cultivate a "fast fashion" model for the food industry.

6. Promote the transformation from manufacturing to manufacturing-oriented services. Promote enterprises to transform from the original single manufacturing business to "product + service" and actively explore and promote new models of food products such as "industrial production + community distribution + home dining," and "interactive design + order production + store distribution." Support leading enterprises to integrate data resources such as information flow, credit flow, and capital flow, and develop new businesses such as industrial chain supply chain cooperation, cloud warehousing, and equipment leasing that are suitable for the characteristics of the food industry.

7. Improve the ability of digital business management. Support food companies to achieve full integration of production management and manufacturing through digital means and improve the digital level of the entire process such as raw material procurement, R&D design, production planning, energy consumption management, and inventory management. Support enterprises to cooperate with scientific research institutions and platform companies, by leveraging digital data twins, artificial intelligence big models, and other advanced technologies to enable intelligent perception, lean manufacturing, smart testing, and precise delivery, and to build a new datadriven, collaboratively managed new model for integrated production, sales, and applications.

(III) Actions for Quality Improvement and Upgrade

8. Accelerate the promotion and application of high-end equipment. Utilize channels such as major national science and technology projects and key R&D plans, make good use of challenged-based mechanism, develop and promote high-end equipment, support software and hardware suitable for the digital transformation characteristics of the food industry, promote the implementation and application of industrial Internet platforms in food industry clusters and industrial zones, and enhance product innovation, quality competitiveness, and brand influence. Promote the inclusion of qualified equipment and components, industrial software and systems into the scope of policy support such as insurance compensation for the first major technical equipment and the first version of software products.

9. Promote intelligent upgrade of enterprises. Accelerate the transformation and upgrading of key process equipment and software in R&D, production, and testing. Adhere to the principle of adapting measures to local conditions, taking measures according to industry, and one policy for each enterprise, encourage enterprises to carry out professional diagnosis and evaluation, accurately grasp the challenges for business processes, clarify the direction of technical transformation, formulate scientific and effective equipment update plans, and focus on promoting small and medium-sized enterprises to carry out "non-digital" equipment transformation and key equipment updates. Promote the high-end, intelligent, and green integrated transformation, and support the application of advanced process equipment such as biomanufacturing and additive manufacturing.

10. Promote green and low-carbon development of the industry. Support enterprises to accelerate equipment renewal and technological transformation, promote automated and intelligent production equipment in industries such as brewing, sugar making, fermentation, baking, and beverages, and achieve precise control and efficient management of key indicators such as energy consumption and emissions through digital means. Encourage enterprises to use digital technology to establish a carbon footprint management system, track and evaluate the carbon footprint of products throughout their life cycle, and scientifically and efficiently reduce carbon emissions. Cultivate consumers' awareness of green and low-carbon consumption, guide enterprises to develop green and low-carbon products, and form a two-way promotion mechanism for production and consumption.

11. Improve the level of digital development in clusters. Accelerate the improvement of digital infrastructure such as network facilities, data centers, and information platforms within the cluster, increase numerical control rate of key processes and the adoption rate of digital R&D and design tools among enterprises within industrial clusters, and implement a series of digital transformation (pilot) projects. Support the construction of digital industrial zones with high enterprise concentration, good digital foundation, and complete supporting conditions, promote enterprises to use cloud computing and data to empower intelligence, promote the construction and application of new information infrastructure such as 5G, gigabit optical networks, Industrial Internet, and Internet of Things, as well as the construction and application of public service platforms such as industrial brains.

12. Promote the coordinated transformation of the industrial chain. Encourage large, medium, and small enterprises to transform in a "chain" model, realize cross-regional network collaboration, and promote data intercommunication & business interconnection of customers, orders, design, production, and operations. Encourage local "chain leader" enterprises to connect upstream and downstream enterprises through order traction, technical guidance, data sharing, etc. to coordinate transformation, create a smart supply chain for regional characteristic industries, and develop platform economy, headquarters economy, and gig economy. Support small and medium-sized food enterprises to transform management systems and production equipment, encourage small and medium-sized enterprises to actively integrate into the supply chain of large enterprises, and strengthen the supporting capabilities of small and medium-sized enterprises in the supply chain.

(IV) Actions for Strengthening Foundations and Empowering Growth

13. Improve the standard system. Promote the formulation and revision of key and urgently needed standards for the digital transformation of the food industry, such as infrastructure, technology application, classification and grading, implementation guidelines, testing and evaluation, interconnection and interoperability, as well as data management, data quality, and product master data. Improve relevant standards and service specifications for system operation and maintenance, equipment maintenance, and other subdivided fields, and promote the construction of a smart manufacturing standard system. Support industry organizations to take the lead in formulating group standards, accelerate the coordination and matching of national standards, industry standards, and group standards, and encourage the formulation of enterprise standards that have indicators higher than national standards and industry standards. Carry out standard publicity and implementation and promote usage of national standards and industry standards in enterprises, industrial zones, and clusters. Deepen cooperation with the International Organizations for Standardization, strengthen the research and evaluation of international standard adoption, and promote the plan for the development of standards in foreign languages.

14. Improve the quality and safety traceability capabilities. Consolidate and improve the traceability system construction in industries such as infant formula and salt, accelerate the construction of traceability systems in key industries, improve the enterprise coverage, production coverage, and digital accessibility of the traceability system, and enhance the inherent safety of food. Encourage enterprises to widely access the industrial Internet identification resolution system and establish product life-cycle quality and safety traceability system for consumers.

15. Strengthen network and data security protection. Encourage enterprises to carry out industrial Internet security classification and grading management, study and formulate guidelines for the identification of important data in the food industry, strengthen important data identification and catalog filing, data security risk assessment, incident emergency response, etc., strengthen network and data security protection capabilities, and improve network and data security protection levels.

16. Strengthen the promotion of typical cases. Organize the compiling of best practices for digital transformation of the food industry and publicize and promote outstanding achievements. Encourage capable enterprises to carry out intelligent manufacturing capability assessment and intelligent factory construction, build intelligent factories (digital workshops) that lead the development of the industry, and support qualified enterprises to actively create intelligent benchmark enterprises and create high-level 5 G factory benchmarks. Encourage small and medium-sized food enterprises to carry out digital level assessment and cultivate model enterprises for transformation. Encourage relevant authorities to praise or commend institutions,enterprises, and individuals that have achieved outstanding results in transformation implementation, technology promotion, standard innovation, etc.

17. Build a public service platform. Encourage local governments and associations to build a public service platform for digital transformation, provide services such as diagnosis and evaluation, scenario cultivation, program incubation, technology promotion, and talent training, and provide enterprises with personalized, high-quality, low-cost, one-stop solutions. Support leading backbone enterprises to play a leading role, build industry-wide Internet platforms, digital transformation public service platforms, and network security public service platforms, promote the transformation from production and manufacturing to service-oriented manufacturing, realize the trusted flow of data between related enterprises, and provide systematic services for industry enterprises.

18. Expand high-quality service providers. Cultivate a group of digital transformation system solutions providers that integrate diagnostic consulting, technology development, network and data security protection, system integration and other functions, encourage suppliers with mature experience in digital transformation in other industries to enter the food industry, build a group of manufacturing digital transformation promotion centers that are deeply involved in the industry, research and develop applicable solutions, support food companies to open and share segmented scenario solutions based on practical exploration. Carry out the development and implementation of standards for the hierarchical and classified evaluation of digital transformation service providers, rely on industry organizations to carry out service provider capacity assessment, and research, publish and promote a catalog of high-quality suppliers.

3. Organization and Implementation

(I) Improve Work System and Mechanism. Guide local governments to establish a work mechanism involving relevant departments, industry organizations, key enterprises, scientific research institutes, etc., take digital transformation as a key tool for cultivating local specialty food industries, formulate digital transformation work plans according to local conditions, coordinate the construction of service platforms, promote advanced technologies, and ensure the orderly implementation of the plan. Support the promotion and education of the plan for local governments and enterprises personnel to enhance their awareness, sense of responsibility, sense of urgency, and subjective initiative.

(II) Optimize Policy Support System. Support local governments to use a variety of funding channels to carry out technological transformation and large-scale equipment upgrades, formulate and implement local special supporting measures in light of local conditions, optimize factor allocation and resource guarantees, accelerate the implementation of key tasks and major projects, actively carry out pilot demonstrations of local and industry digital transformation, and support the application of key technologies and equipment for digital transformation.

(III) Increase Financial Support. Give full play to the guiding role of the national industrialfinancial cooperation platform, monetary credit and financial policies, strengthen the connection between financing services, encourage banking and financial institutions to innovate financial products and service models, under the premise of controllable risks, increase financing support for the transformation and upgrading of food enterprises and improve the quality and efficiency of financial services. Support domestic listing and financing of qualified food enterprises.

(IV) Promote Exchanges & Cooperation. Strengthen exchanges and cooperation on advanced concepts, technical products, and solutions for digital transformation within and outside the industry and within and outside the region. Organize supply-demand matching activities and encourage local governments, industry organizations, and leading backbone enterprises to publicize and promote the results of digital transformation through summits, forums, and competition events. Support the establishment of an international cooperation platform for digital transformation to promote exchanges and collaboration among enterprises, products, and technologies.

(V) Cultivate High-level Talent Team. Support enterprises in partnering with training institutions and industry associations to advance the integration and alignment of industry and education, and to implement targeted collaborative talent cultivation, enhance the training of versatile, practice-oriented professionals through modern industrial colleges, accelerate the training of practical talents through apprenticeship, skills training, competitions, etc., and support the establishment of an industry-wide digital transformation talent big data monitoring platform. Strengthen the evaluation of the ability level of professional, technical, and skilled personnel, carry out digital technology engineer training projects, and support the construction of a national excellent engineer practice training base. Cultivate a group of digital transformation management talents and outstanding entrepreneurs.

(VI) Strengthen Implementation of Monitoring and Evaluation. Support local governments to establish a monitoring and evaluation mechanism for the digital transformation of the food industry, utilize the manufacturing digital transformation information platform to assess the regional food industry's digitalization, release local digital indices and reports, and visualize the digital transformation landscape; regularly organize third-party evaluations and supervision incentives for the implementation of tasks, and adjust and optimize target tasks in a timely manner.

Source: USDA

Note: This article is compiled by Antion. Please indicate the source for reprint.