Moutai leads circular economy in baijiu production

Kweichow Moutai Group has transformed what was once considered waste into valuable resources that support ecological agriculture.

During the production of sauce-flavored baijiu, large amounts of distillers' grains and other residues are generated. As one of the first national pilot units for the circular economy, Moutai has developed pathways to fully recycle these byproducts into organic fertilizer, animal feed, and biogas, achieving 100 percent utilization.

For every ton of sauce-flavored baijiu produced, 2.4 metric tons of sorghum and 2.6 tons of wheat are used, resulting in roughly 4 tons of distillers' grains. Across Moutai's 30 distilleries, annual production generates nearly 300,000 tons of this byproduct.

These grains are transported to a dedicated facility 60 kilometers away, where they become raw materials for organic fertilizer production. By August, the new production cycle begins.

Using proprietary microbes combined with environmental microorganisms, the distillers' grains undergo natural compost fermentation followed by maturation, breaking down organic matter into high-quality, stable fertilizer.

This organic fertilizer is then delivered to Moutai's sorghum and wheat farms to support spring planting. Each year, the company provides 100,000 tons of organic fertilizer free to over 900 villages and 200,000 farming households.

Moutai is the first company in China to turn baijiu byproducts into fertilizer, with plans to further expand R&D and explore applications in cosmetics, biomass materials, and insect farming, where insect proteins can be converted into pet feed.