China's Amino Acid Industry Faces Reliance on Shuffles

The amino acid industry known internationally as the "longevity industry" has broad prospects for development. However, our country's amino acid industry seems to be struggling with "precarious conditions." At the national amino acid company's first summit meeting held recently, the national key amino acid production enterprise symposium, the participants pointed out that the domestic amino acid industry shuffle has been unavoidable.
The use of amino acids is relatively wide, and the annual global demand reaches more than 1 million tons. In China, although the amino acid industry is developing rapidly, the demand for some of the more demanding medicinal amino acids and their derivatives is still very large. Many products have to rely on foreign imports, and the industry outlook is very good. However, the performance of our country's amino acid industry is far from satisfactory, mainly in two aspects: first, disorderly competition; second, it is inferior to technology.
Disorderly competition market chaos China's amino acid health products manufacturing companies are numerous, but the scale is very small, the technology is relatively backward. Many products only stay in the laboratory stage and cannot be directly converted into productivity. The total annual production value is only about 500 million yuan, which is insignificant compared with the global total output value of tens of billions of amino acids. The order in the domestic market is more confusing, mainly manifested in the disorderly competition in prices, the frequent occurrence of infringement between enterprises, and the shoddyness in the market.
Although price fluctuations in the raw material field of the amino acid industry have not been fluctuating in recent years, the disorderly competition in the prices of injection and health care products has become more serious, and many varieties have fallen by more than 30% in the past three to four years. Many imported amino acid products can be produced by domestic companies, but there is a big difference in the sales price of terminals. The market price per ton of amino acid has dropped from about 30,000 yuan in March last year to more than 10,000 yuan today, a drop of 50% to 60%, so the entire domestic amino acid industry is currently facing losses.
Differences in technology are not as good as in people. Compared with some amino acid producers in foreign countries, some companies in China are not as skilled as people, and there is a big gap.
As China's amino acid industry is facing a major technical problem, some products can only be produced by a small number of enterprises, and only a small amount of production, even if the technology of China's leading enterprises of the amino acid industry can not be compared with multinational companies. Such as lysine, the current foreign products have reached the third generation, and China is still stagnant in the first generation of products. Moreover, most of our amino acid products are only used as feeds with low added value, while pharmaceutical amino acids with higher purity are generally lack of production capacity. At the same time, the quality of domestically produced amino acid raw materials is inferior to imported bulk drugs.
Although Japan is a country lacking raw materials, energy, and labor, it has become a major amino acid producer in the world. They rely on technological advantages and take technical advances to offset other deficiencies. Japan's Ajinomoto, which controls 60% of the global amino acid market, has entered the Chinese market and has established more than 10 companies in China. Currently, 10 pharmaceutical amino acids are sold on the Chinese market. Germany's third-largest chemical company, Degussa Group, has 18 wholly-owned or joint ventures 17 years after entering China. Annual sales of amino acids and other products in China reach hundreds of millions of euros. However, China is only relying on energy and lower production cost advantages, so it is difficult to compete with Japan and Germany and other amino acid producing countries.
Experts believe that as environmental protection issues are increasingly valued and energy consumption is controlled, the production cost advantage of China's amino acid production enterprises will be weakened, and the prospects are even less optimistic.
Reluctant to seek self-discipline for shuffling It is understood that the theme of the first summit meeting of domestic amino acid companies is "to expand consensus, fair competition, strengthen self-discipline, and seek common development." In view of the suspension of production, closure and investment of domestic amino acid companies and the start of rotation, many experts believe that the reshuffling of the amino acid industry is inevitable. On the one hand, domestic amino acid companies are struggling; on the other hand, there is a lot of room for growth in the market. Therefore, while some companies are facing production shutdowns and closures, some savvy investors have turned their attention to the amino acid industry.
Since this year, Star Lake Technology, the largest amino acid producer in South China, has invested 350 million yuan to build a production line with an annual output of 30,000 tons of lysine. Lianyungang Shunde Biological Engineering Co., Ltd., the largest amino acid company in Northern Jiangsu, has also invested to build an annual output of amino acids. 1,500 tons of production lines. Therefore, in the surging investment boom, it is inevitable that some smaller, technologically backward companies will be eliminated in the reshuffle.
The industry believes that the domestic amino acid industry has been shuffled and should be able to get out of the trough. However, the overall improvement of the industry should first rely on industry self-discipline, eliminate disorderly competition, so that the entire industry has a more reasonable profit. Therefore, the participants of the first summit meeting of domestic amino acid companies reached a consensus and signed the "amino acid injection industry convention". Its main contents include: strengthening industry self-regulation and safeguarding the overall image of the industry; strengthening professional ethics and ensuring the safety of people's medication; determining amino acid injections The liquid product's cost price is opposed to sales below the cost price and opposes unfair competition practices. I hope that the adoption of the "Convention" can raise the level of the entire industry and hold up the sun of the amino acid industry tomorrow.

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