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IPFS News Link • China

Heartland, Part 1: The Peculiar Story of Fufeng Group And Grand Forks

• by Fortis Analysis

In the United States, this is especially true for amino acids, specifically of the type used in animal feed. Though little-known amongst the general population, synthetic amino acids such as lysine and threonine play a crucial role in managing animal health and growth. Relatedly, as the use of soybean meal for a primary protein source has increased in feed rations, amino acids become even more important.

These products, generally produced from corn (though cassava root and sugarcane may also be used), require substantial investment into a complex manufacturing process built around fermentation of the corn's starch. It is also energy intensive, requiring high heat to produce and dry the product. Given the constant attention paid to its food security, China leads the world in research, subsidies, and investment into manufacturing these critical components in the food supply chain, with control of up to 65% of global market share in lysine, perhaps the most widely-used and critical of the amino acid complex.

As many in the feed industry are aware, the most recent bio-fermentation plant proposed in the US is to be built and controlled by Fufeng Group, one of China's dominant players in the amino acid sector. In the recent past, Fufeng Group has looked at opening production facilities for their bio-fermented products (MSG, xanthan gum, lysine, threonine, tryptophan, valine, isoleucine) in Ukraine, India, and several other countries – as of yet, with no success.