The US agribusiness giant will refocus the lysine business, concentrating instead on manufacture of liquid and encapsulated lysine products.
“Market conditions for dry lysine have eroded,” according to Pierre Joseph Paoli, ADM’s president of feed ingredients and additives.
The majority of ADM’s lysine production is of the liquid variety, an ADM spokesperson told Bloomberg.
ADM’s chief financial officer, Ray Young, spoke about the lysine market back in September during an investor conference: “Lysine is a part of our animal nutrition services, it’s probably more commodity like in terms of its margin structure. Chinese players are major participants in the lysine markets around the world and hence they do have an impact in terms of the pricing environment.”
Throughout 2020, the company has worked with pork and poultry producers to shift them to liquid lysine, installing equipment in their plants.
“We’ve received great feedback as we’ve worked closely with producers to transition them to our liquid lysine products and delivery systems, as well as to our innovative new encapsulated lysine products,” said Paoli.
ADM continues to introduce new lysine products for dairy cows such as its NutriPass L technology, an encapsulated lysine product that looks to deliver a consistent supply of metabolized lysine to the cow, he added.
The company said that animal nutrition is a growing and evolving industry, and that ADM aims to address changing customer needs with new, innovative products.
In that regards, it announced a partnership with French insect protein player, InnovaFeed, last month.
The parties outlined how they will collaborate on the construction and operation of a large insect protein production site in Decatur, Illinois, to meet the growing demand for insect protein in animal feed, a market, they said, has potential to reach 1 million tons in 2027.
The Illinois facility will be owned and operated by InnovaFeed and will co-locate with ADM’s Decatur corn processing complex, with ADM supplying feedstocks and waste heat.