LIAO WEISEN
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2024 Annual Review of Natural Fermented Preservatives

As we close out 2024, we take this opportunity to reflect on the opportunities and challenges faced by the natural fermented preservatives industry throughout the year. Key issues within the supply chain have underscored the need for stricter quality control, enhanced credit risk management, and greater resilience in the face of global uncertainties.

One of the most concerning issues this year was that some suppliers’ products had total colony counts exceeding acceptable limits by more than tenfold, with some batches containing over 10,000 colonies. This poses a significant threat to food safety and hygiene, creating compliance risks and potential health hazards for consumers. Food safety remains the cornerstone of our industry, and any lapse in hygiene standards can result in severe consequences. In response, we have increased the frequency of batch testing and sampling inspections across our supply chain to ensure every batch meets stringent hygiene and quality standards. We also encourage our industry peers to raise their quality benchmarks to reduce risks and provide safer, more reliable products to the market.

Another pressing issue this year was the extension of payment terms and increased demand for credit-based transactions from buyers. While this may boost sales in the short term, it puts considerable strain on suppliers’ cash flow and operational stability, adding uncertainty to the supply chain. In light of this, we have refined our contractual terms to set clearer payment limits and prioritize partnerships with financially sound and creditworthy buyers, ensuring a more balanced and sustainable transaction environment for all parties involved.

Geopolitical instability and global supply chain disruptions also directly impacted the industry, leading to volatile raw material prices and logistical challenges that increased production costs. To address these fluctuations, we have actively diversified our sourcing channels and strengthened partnerships with key suppliers to ensure stable operations and minimize the impact of rising costs on our customers.

In 2024, we placed a strong focus on supplier credit assessments and qualification reviews. We have phased out suppliers with excessive legal disputes, frozen equity, or concerning financial instability to reduce operational risk and ensure the integrity of our supply chain. This proactive approach has not only protected our operations but also strengthened the long-term reliability of our partnerships. Moving forward, we will continue to enhance due diligence and monitor supplier qualifications to ensure transparency and reliability across the supply chain.

Looking ahead to 2025, we anticipate that high-concentration natural fermented preservatives will surpass low-concentration products in market demand and application. This trend reflects the industry’s growing preference for more efficient, cost-effective, and high-performance preservation solutions. High-concentration products can deliver stronger preservative effects with lower dosages, aligning with the market’s focus on performance optimization and cost control. To support this transition, we will continue to invest in research, innovation, and production capacity expansion to meet the increasing demand for high-concentration solutions.

As we enter 2025, we remain committed to quality, integrity, and collaboration. We look forward to deepening our partnerships and seizing new opportunities together to drive shared success and innovation in the year ahead.

Wishing everyone a happy and prosperous New Year. Here’s to continued growth and excellence in 2025!

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