CJ CheilJedang suspends operation of feed raw material line in China due to recession that started last year - South Korean report

Major food company CJ CheilJedang recently suspended production of granulated lysine, a feed ingredient, at its production base in China's Shandong province, CJ Liaocheng Biotech.
A company official said, ``CJ Liaocheng Biotech is capable of producing not only nucleic acids, which are raw materials for seasonings, but also eight types of ARMY nucleic acid materials, so we can adapt them to suit market conditions.
We will adjust the operating status accordingly." The reason behind this decision is that the slump in the lysine market that started last year is expected to continue into this year. China has the highest consumption of pork in the world, and lysine
However, demand sharply decreased last year due to the local economic stagnation. In addition, dumping by Chinese lysine manufacturers was revealed, causing prices to fall further.
In fact, in the case of Daesang, a major food company that produces lysine, it will cost 2,453 won (approximately 272 yen) per kilogram in 2022.
The price of lysine fell to 2,007 won (about 222 yen) at the end of September last year. An industry official said, ``Granules can be said to be the basic form of lysine, and they are less profitable than liquid or powder forms.
Europe, where the lysine business has been recovering recently, mainly imports liquid lysine. "CJ CheilJedang will likely adjust its production to focus on high value-added raw materials in the future."