Tightening in global supply of methionine
“We’re seeing strong and healthy demand but coupled with the continued challenges in the supply chain and recent supply disruptions, it has led to a firmer balance between available supply and immediate demand,” he told FeedNavigator.
Asked whether global demand is greater for liquid or dry versions of methionine, Hux reported:
"Demand for methionine remains solid, with an estimated annual growth rate of 5-6% per year. This is the case regardless of product form.”
China is the single largest methionine market in the world and has evidently contributed to an above-average increase in global demand in recent years, said the methionine market specialist.
“China has also become a key producer for this ingredient and continues to expand its domestic production capacity.”
Novus’ methionine operations in the US, its manufacturing facilities, and its supply chain and logistics operations, are performing according to plan, confirmed Hux.
“Like many during the height of the pandemic, our teams worked hard to ensure customers weren’t impacted by the challenges we may have experienced. We are also fortunate to have teams that created safety nets and alternative options to ensure on-site disruptions were minimal.”
Anti-dumping probe
Also commenting on the fallout from the International Trade Commission (ITC) and US Department of Commerce inquiry into whether foreign-supplied methionine was being dumped in the US market, Hux said:
“The intention of the antidumping investigation was for the external authorities to determine if illegal methionine dumping was occurring and, if so, to address those actions and discourage other importers from participating in those unfair and illegal trade practices. The decisions by the ITC and Commerce confirmed illegal and unfair dumping and their rulings are a positive step in ensuring a fair, competitive methionine market in the US.”
Methionine is a first limiting amino acid in poultry and ruminant diets.
Novus’ manufacturing facility in Chocolate Bayou, Texas produces methionine hydroxy analogue (HMTBa), the molecule used to create its methionine source for animal production, ALIMET feed supplement. Capacity at that plant is 320K metric tons per annum.
The ALIMET feed supplement, said Hux, has 88% methionine activity and is 100% absorbed by the animal. “We see its adoption continuing to grow each year.”
In addition to being a source of methionine, Hux said studies have demonstrated that the feed additive has an antioxidant effect in the feed, that it maintains performance during heat stress, that it results in energy savings at the mill through automated measuring and applying, improved mixing, and reduced particle loss, and that it also encourages increased feed intake.
