May 13, 2014
CJ CheilJedang increases fermented soymeal production, plans Vietnam plant
CJ CheilJedangrecently increased its fermented soymeal capacity to 13,000 tonnes from 5,000 tonnes by establishing a production plant in Korea and will follow up with a production base in Vietnam in the second half of the year, according to the Korea Times.
It will soon expand toward other markets such as China, the United States, and Europe and try to take a 15-percent share in the world market by 2020 with KWN200 billion (US$195.39 million) in annual sales revenue.
The move to step up its production of Soytide, high-protein fermented soybean meal-based animal feed, is meant to keep pace with the rapidly growing market and spurred by the continuous rise in fishmeal prices due to supply-demand imbalances.
Compared to fishmeal, soymeal is only half of the price, with protein content as high as 55%, versus 65% in fishmeal. Given the fishmeal market reaches the KRW10-trillion (US$9.77-billion) level, the market for soybean meal is also set to grow to a several trillion-won market in the near future.
The global fermented soybean meal market is currently estimated at KRW700 billion (US$683.88 billion), with an annual average growth rate of 5% due to the steady growth in demand from markets like China and Southeast Asia where meat consumption rises fast.
The market leaders in this area include Hamlet Protein A/S of Denmark (with its fermented soybean meal made with yeast) and DaBomb Protein of Taiwan (fermented soybean meal made with lactobacillus), with combined market share of only 6%.