9 Nov 2023
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From the Feedinfo Editorial Desk
It was an active week in terms of animal nutrition industry earnings releases. Alongside these quarterly financials, there were several operational developments of note.
Citing eroding market conditions and global industry capacity, ADM’s animal nutrition business made the strategic decision to halt production of feed-grade threonine in H1 2023. ADM will evaluate future market conditions to assess whether threonine production will regain prominence in the portfolio, a company spokesperson said.
Meanwhile, the expansion of NHU’s DL-methionine plant at Weifang, Shandong, is not going to be fully operational before the second half of February 2024.
Two Australian companies have entered into an MOU to explore the feasibility of manufacturing dicalcium phosphate for use in animal feed, as well as direct application fertilizer. Agriflex, a subsidiary of Centrex, which owns Australia’s biggest phosphates mine, would supply granular apatite to Cleveland Bay Chemical Company’s processing facility in North Queensland, for DCP production studies.
Also in Australia, biotech company Provectus Algae has commissioned a 30,000 litre demonstration plant to expand the production of Asparagopsis feed additives.
In other news, sources in Ukraine report that a growing number of companies are switching from buying feed on the market to mixing their own feed. As grain is affordable, farmers are experimenting and shaping up fattening rations, which in turn secures greater demand for premixes and vitamins, the sources said.
Finally, Chinese grain production is projected to reach a record high for the ninth consecutive year, surpassing 1.3 trillion kg, while production of meat, eggs, milk, and aqua products have all reportedly expanded, according to China State Council officials.
From the Feedinfo Analyst Desk
Global feed additive prices moved in different directions over the past seven days, with methionine continuing its firm trend while other products were mostly stable-to-weak.
In Asia, the expansion of NHU’s DL-methionine plant at Weifang, Shandong, is not expected to be fully operational before the second half of February 2024. Methionine producers increased their offer prices due to tight supply. A significant downturn in Chinese lysine sulphate prices has prompted industry concerns.
In Europe, methionine prices held steady as supply is set to remain tight into Q1. D-Calpan prices were under pressure and declining. Lysine sulphate prices were softer amid good Q4 supply.
In the US, ADM confirmed its decision to halt threonine production in H1 2023. An industry group has engaged the US government in addressing concerns over the country’s dependency on China for vitamins, and is discussing a potential Homeland Security listing.
In South America, lysine, threonine, and valine prices fell in Brazil while methionine remained firm. Phosphate prices slipped on poor demand and weaker exchange rate fundamentals.
Senior Analyst (Asia), Feedinfo
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