Huaheng validates 3,000 tpa biological production line for l-methionine
Hengyu Bio, a subsidiary of Huaheng Bio, recently unveiled its work on validating a biological production process for L-methionine, a product for which it has built a 3,000-tonne/year production line.
Up to this point, the amino acid has mainly been available to the animal nutrition market in the form of synthetically produced DL-methionine. South Korea’s CJ Bio rolled out biologically produced L-methionine in 2015 at its plant in Kerteh, Malaysia, but it is understood that the plant has since been switched over to a flexible production model, allowing it to manufacture other fermented amino acids on these lines.
Global production capacity for methionine amounts to around 2.3 million tonnes/year (calculated on a DL-methionine basis), according to Expana’s Feed Additives Supply & Demand Pro service. This includes the capacity for methionine hydroxy analog (MHA-FA).
A statement from Huaheng Bio asserts that Hengyu and its research partners have broken through key technical bottlenecks, including establishing a proprietary cellular production platform, catalytic component design and synthesis, control of the fermentation process, and efficient separation of target products.
“The product quality meets national standards and adheres to the principles of green manufacturing and low-carbon environmental protection,” it claims.
Huaheng Bio is a Chinese enterprise manufacturer of amino acids, vitamins, and bio-based material monomers aimed at the animal nutrition, personal care, plant nutrition, and functional foods and nutrition markets.
BASF declares a casualty on vitamins A and E until further notice
BASF has declared force majeure on deliveries of selected vitamin A, vitamin E and carotenoid products as well as selected aroma ingredients with immediate effect and until further notice, the company announced on August 7th ..
This follows the suspension of deliveries of vitamin A and vitamin E products from the company’s Ludwigshafen site in Germany one week ago after an explosion at the site.
The explosion occurred at the southern part of the Ludwigshafen site at around noon on July 29th .
“The fire occurred in a BASF plant that manufactures aroma ingredients and precursors for vitamin A, vitamin E, and carotenoid production”, the company explained in its latest statement.
“The incident has unfortunately caused damage to the plant, which led to a shut-down and a supply disruption of the aforementioned products. Cleaning, inspection and repair work of the plant has started.”
The Ludwigshafen site manufactures feed-grade vitamin A 1000 and vitamin E oil, as well as various human nutrition, animal nutrition, and cosmetic ingredients.
According to Expana’s Feed Additives Supply & Demand Pro service, BASF’s production capacity for vitamin A 1000 in Ludwigshafen is approximately 5,600 tonnes/year. The site also has a nameplate capacity of 15,000 tonnes/year of vitamin E oil.
Agreement between AAFCO and FDA ending, closing one pathway for new feed ingredient approval in the USOne of the three pathways for the approval of new animal feed ingredients or additives in the United States will soon be closing, according to an announcement late last week.
In effect, the Memorandum of Understanding between the Association of American Feed Control Officials (AAFCO) and the U.S. Food and Drug Administration (FDA) will not be renewed when it expires on October 1, 2024, after having been in place for 17 years.
This MOU clarified the responsibilities of each party under AAFCO’s Ingredient Definition Request Process, under which requests for new ingredients or modifications to existing feed ingredient definitions are reviewed by AAFCO investigators, with the advice and consent of the FDA.
AAFCO, a voluntary organization that is largely made up of state-level officials charged with the regulation of animal feeds, says it will stop accepting Feed Ingredient Definition requests on 1 September. “Although we are disappointed that the MOU is not being renewed, we are committed to being a conduit between the FDA and state regulatory programs, and to our work to provide standardization to the animal food industry,” admitted Austin Therrell, executive director of AAFCO.
The FDA has stated that this is not an end to its relationship with AAFCO, but rather an evolution. Specifically, it asserts that this move represents “an opportunity for FDA to begin a thorough evaluation of its pre-market animal food review programs, in hopes of adapting to better serve public health and the needs of all stakeholders.” The federal agency says it will be issuing a Request for Comments (RFC) seeking public input on specific questions to help determine what’s working, what’s not, and what changes may be needed, as well as two draft guidance documents relevant to the upcoming transition phase.
For its part, the American Feed Industry Association, which mostly represents private sector stakeholders in animal nutrition supply chain, also expressed disappointment at the end of a system thatit says has “worked well for decades,” as well as concern that this will put unacceptable pressure on the other two pathways for approval of new ingredients, adding to the cost and time spent in getting innovative products to the market.
“In the United States, it takes an average ofthree to five years and $600,000 per ingredient before animal food innovators gain the approvals they need to sell and use their products in diets for domestic livestock and pets. Our members are concerned that uncertainty in the regulatory review processes brought about by today’s announcements will only increase those figures, making the U.S. animal ingredient marketplace an unattractive place to do business,” AFIA President and CEO Constance Cullman said.
Soybean deliveries to crushing plants plummet amid oilseed workers’ strike in Argentina
According to market sources, the number of soybean trucks arriving at the UpRiver crushing plants in Argentina has plummeted due to the new strike by oilseed workers, with 84 trucks counted at crushing plants on July 7th , compared to 1,006 trucks recorded in the previous day. The country’s oilseeds union (SOEA) and the Federation of Oilseed Industry Workers initiated a strike over wages on Tuesday, July 6th , on the back of “a lack of agreement in collective bargaining over wages.” The indefinite strike has left at least 12 grains and by-products export terminals in Greater Rosario without activity. As Argentina continues to struggle with a prolonged economic crisis, the strike action is expected to have further negative implications on the economy as 80% of the country’s grain exports depart from Greater Rosario.
In addition, market sources reported slower-paced farmer selling in the past weeks, attributed to farmers holding onto grains in anticipation of a price rebound. Developments to the strike action and farmer selling pace will be kdrivers in the soybean and derivative markets. Expana will continue to provide updates as the situation unfolds.
Estimates and sentiment from the market ahead of the August12th MPOB
Insights gathered from market players suggest that the release of the latest Malaysian Palm Oil Board (MPOB) report on August 12th may hold few surprises with most market players surveyed by Expana aligning on the metrics.
Among the market participants surveyed by Expana, expectations are for an increase of 13-14% in Malaysian palm production in July as compared to June. It is important to note that this is a significant change to market players’ views at the start of the month, where most commented that a single-digit increase was more likely. This skepticism was largely due to the aging trees and the lower yield of palm fruit. However, this double-digit increase could be seen in palm oil production for July range between 1.83-1.84 million mt. If realized this would represent an increase of over 200,000 mt compared to June 24th . In a ‘usual’ scenario, an increase in production would be a bearish indicator.
However, industry insiders submitted figures estimating a 20-22% increase in July exports from Malaysia as compared to June. Market players commented that this significant increase in exports was due to substantial stockpiling by both India and China over the month as margins particularly in India “made it a no-brainer for import”. However, it should be noted that due to the stocked pipelines in both key buying nations industry insiders have mused that it could be a significant period before either nation seeks palm volumes over August. Despite the increase in production, participants surveyed commented that the exports were more than substantial enough to offset the increase in production and gave estimates for Malaysian end stocks to decline by 3% in July as compared to June. A stock decrease in July would break a three-month cycle of continual increases and could temper some of the concerns over demand as we progress in August according to market players.
Yet, it should be noted that production is likely to be a key watch-out factor in August with early estimates from The Southern Peninsular Palm Oil Millers Association (SPPOMA) placing production at 26% lower than in July. However, midmonth production estimates are likely to give a much better understanding of how production may look in August as compared to July as early production in July was unusually large.
Insights gathered from market players suggest that the release of the latest Malaysian Palm Oil Board (MPOB) report on 10th July may hold limited surprises with most market players surveyed by Expana aligning on the metrics.
For further insights, please watch our most recent oilseeds webinar.
Written by Nick Wood
