|Title:||Global share of demand for feed-grade amino acids by type in percentages as reported October 21, 2011|
|Source:||China Chemical Reporter|
Start of full article - but without data
Structure of the global feed-grade amino acid market
Note: Table made from pie chart.
X. Overview of the feed-grade amino acid market
Protein is one of the four nutrients required for the normal growth of animals. Animal feed is usually added with soybean meal and fish meal as the main source of proteins and is also added with some synthetic amino acids as a supplement of proteins. Synthetic amino acids can promote the growth and development of animals, improve their meat quality, enhance their milk or egg production, lower feed costs, and increase feed utilization.
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Currently, common feed-grade amino acids include lysine, methionine, threonine and tryptophan. The global annual demand for feed-grade amino acid is about X.XX million tons, with an estimated value of about US$X billion.
The global annual demand for lysine is about X.X million tons (with a value of about US$X.X billion), methionine about XXX XXX tons (US$X.X billion), threonine about XXX XXX tons (US$XXX million), and tryptophan about X XXX tons (US$XXX million).
From the perspective of the industry chain, amino acids are involved in chemical production in the upstream and animal feed and cultivation in the downstream and are located in the front end of the value chain. Synthetic amino acids account for less than X% of the animal feed in volume but X% to X% in cost.
In China, more than XX% of feed-grade protein resources are imported from abroad, and their prices fluctuate frequently. It is estimated that the ratio-nal use of synthetic amino acids can annually reduce the cost of the country's soybean meal by RMBX.X billion and increase the cost of corn, lysine and threonine by RMBX billion, thus reducing the overall feed cost by RMBX.X billion a year. If the price of tryptophan further drops, the four kinds of amino acids can be used regularly at the same time. This way, they can annually reduce the consumption of soybean meal by more than X million tons in China, thus reducing the feed cost by at least RMBXX billion a year. In addition, by reducing the crude protein level in the animal feed, the emissions of nitrogen and ammonia of animals can significantly reduce.
X. Fast development of China's feed-grade amino acid industry in the past X years
In 2004, China's lysine industry ushered in a climax, and the number of lysine manufacturers in the country reached XX, with a combined capacity of XXX XXX t/a. The next year, the country's lysine imports ex-ceeded exports for the first time, and the country ended its long-term dependence on imported lysine and became a lysine exporter. Later on, due to overcapacity, the lysine industry began a brutal reshuffle. Large manufacturers constantly expanded their production capacity and increased their market share, while small ones were eliminated. By 2010, the number of lysine manufacturers in China dropped to only six, but their combined capacity increased to XXX XXX t/a.
in 2004, Fruznou Fucheng MSG & Food Co Ltd started producing threonine and became China's first feedgrade threonine producer, with a threonine capacity of X XXX t/a. By 2008, the total threonine capacity in China had reached XX XXX t/a. In 2010, the capacity reached XXX XXX t/a, and the output reached about XX XXX tons.
The development of tryptophan is also rapid in China. In 2009, the production capacity and consumption of tryptophan in China were XXX t/a and XXX tons, respectively. In 2010, the capacity surged to X XXX t/a, but the consumption was XXX - XXXX tons. The number of tryptophan manufacturers in the country rapidly increased from two in 2008 to ten in 2010.
In 2010, the Chongqing Unis methionine project was put into production. Meanwhile, the Bluestar Adisseo methionine project and the Dalian-based Sumitomo methionine project were under construction. Dachan Group has developed a fermentation-based methionine production method and also plans to put the technology into industrial production. It is expected that in the next X to X years, the large-scale industrial production of methionine will be achieved in China.
Since China became a net exporter of lysine in 2005, it has now achieved the mass production of threonine and tryptophan and exported a large amount of the two amino acids. By 2010, its feed-grade amino acid output reached XXX XXX tons, accounts for XX% of the global total, and its annual export of lysine and threonine together had reached about XXX XXX tons. The industrial production of methionine in the country is no longer a distant dream. In just five years, China's feed-grade amino acid industry has undergone tremendous changes.
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Figure X Structure of the global feed-grade amino acid market
Note: Table made from pie chart.
X. Analysis on the development trend of feed-grade amino acid markets
Prior to 2005, the world production of amino acids was relatively stable. The global lysine production was mainly dominated by Japan's Ajinomoto, the United States' ADM and South Korea's CJ. Ajinomoto occupied XX % of the global lysine market. Back then, the global consumption of threonine was only XX XXX to XX XXX tons a year, and its main suppliers were Ajinomoto and Degussa. The two companies accounted for more than XX percent of the global threonine market. Before 2008, the two companies also completely dominated the global tryptophan market. Since 2009, the relatively stable global methionine market has undergone substantial changes. Nippon Soda Co Ltd quitted from the methionine market due to the market instability and the continued capacity expansion of competitors. In China, several methionine projects are under construction, and Sumitomo, Adisseo and Degussa are also aggressively expanding their methionine capacity in the country. The global capacity and consumption of the X common amino acids and their major producers are shown in Table X.
Table X Global capacity and consumption of common amino
acids and their major producers
Amino acid Capacity Demand Major Market Other (kt/a) (kt) suppliers share of manufacturers major suppliers
Methionine XXX XXX Degussa, XX% Volga, Novus, Chongqing Adisseo, Unis Sumitorno
Lysine > XXXX XXXX Dachan, XX% HAKKO, ADM, Ajinomoto, Degussa, CJ Fengyuan Threonine >XXX XXX Ajinomoto, XX% Dachan, Meihua Fufeng, ADM, Group etc (China) Star Lake (China), Degussa, CJ Tryptophan XX X Ajinomoto, XX% Fengyuan, Degussa Dachan, Meihua Group, i Amino acid Industrial concentration level
Methionine High Lysine Low Threonine Common Tryptophan Xtc Common
Throughout 2005 to 2010, the global feed-grade amino acid industry had developed fast and dramatically. During this period, capacity surged, many producers were eliminated, the number of product varieties increased, and production facilities were transferred to many other areas. All these show that the global feed-grade amino acid industry has entered a new round of dramatic changes.
Different amino acids are in different stages of development:
* The lysine sector is in the consolidation stage. During this stage, leading producers will continue to expand their capacity, and newcomers will be discouraged. In the next X to X years, only X - X major producers will be left and dominate the market.
* The methionine sector enters a new round of capacity expansion. Not only Chinese enterprises but also major global companies, such as Degussa, Sumitomo and Adisseo, are expanding their production capacity. In October 2010, Evonik Group announced to build a new methionine plant in Singapore. The plant will produce DL-methionine and have a capacity of XXX XXX t/a and will be put into operation in 2014. By then, the company's combined production capacity of DL-methionine will reach XXX XXX t/a. In October 2009, Sumitomo Chemical announced to establish a XX XXX t/a joint-venture methionine plant in Dalian, China. The company's combined capacity will reach XXX XXX t/a when the project is completed. The future market structure of methionine will become complicated. After the capacity expansion stage is over, if the capacity far exceeds the demand, the sector will enter a consolidation stage. This round of capacity expansion is expected to last three to five years.