China is one of the fastest growing nations in world with a strong economy and high population. Increase in living standards of people in the country has led to changes in their appetite, which is further leading to significant increase in meat consumption of the country. China’s consumption of pork was reported to be six times more than that of United States in 2012. China with increasing consumption also has high production of meat especially pork where China accounts for almost half of the worlds pork production. Other types of meat consumed in the nation include chicken and beef, with pork being the most widely consumed meat in the country.
Growing meat consumption in the country is expected to drive the market for feed additives especially lysine which is essential for meat growth. Raising livestock requires a significant amount of natural feedstock and feed additives. Animal feed additives help them to produce a good quantity as well as quality of meat, which is essential to meet the growing demand. Lysine, owing to its nutritional values is used as an additive in animal feed; it also helps to develop muscle tissues of the animal. Transparency Market Research (http://www.transparencymarketresearch.com/), a leading U.S.-based Market Research firm, analyses the market for lysine and predicts a compounded annual growth rate of 5.8% for the period 2012 to 2018. Industrial lysine is considered to have advantages over other sources such as soy meal and corn.
In order to meet the growing meat consumption, China based Shuanghui International’s subsidiary will be acquiring United States largest pork producer, Smithfield Foods Inc. Shuanghui International (owner of China’s largest meat producer) announced the acquisition in May, 2013. Chinese company has bid USD 4.72 billion for Smithfield Foods Inc which is the world’s largest pork producer. China is also one of the largest importers of soybean which is used as feedstock for animals as well as a major importer of pork. In addition, the country is also focusing to increase its domestic production of feed additives including lysine. The world’s largest producer of lysine, Global Bio-Chem Technology has been investing in expansion of the lysine production plants to meet the growing demand.
Lysine demand is thus expected to grow with increase in meat consumption specifically for pork in countries such as China which reported approximately 54 million tons of pork consumption in 2012 and is expected to increase significantly in coming years.