eFeedLink - Executive Talk: Welding expects fast growth in DL-methionine requirement

December 31, 2010

Executive Talk: Welding expects fast growth in DL-methionine requirement

An eFeedLink Exclusive

Winfrid Meissner, Head of Department - Feed Additives & Veterinary Products, Welding Gmbh & CO. KG

Germany-based Welding has been a distributor and marketing company since 1955. For two decades, the company has been selling methionine to the global market on behalf of its Russian manufacturer.

In the following interview, we spoke to Winfrid Meissner, Head of Department - Feed Additives & Veterinary Products, Welding Gmbh & CO. KG, as he shares his view on the methionine market and the company's future plans in Asia.

Can you briefly introduce your company's products and its services?

Our company consists of three divisions - pharmaceuticals, food additives, as well as feed additives and veterinary ingredients. For veterinary ingredients, they are used for therapeutic purposes and not as AGP.

Welding has been a distributor and marketing company since 1955. Our headquarters is in Hamburg and our staff strength is over 120. For 20 years, we have been selling methionine all over the world on behalf of our Russian manufacturer. With regards to the methionine market, we started on a small scale in Europe. As the market develops, we have expanded into other territories. As part of our expansion, we are reaching into Brazil, the world's second largest poultry producer. Today, our products are known from Mexico to Vietnam.

Besides methionine, we sell threonine, tryptophan and other amino acids. In view of market requirements, we plan to add more products, such as lysine to the offering.

As a manufacturer agent, what plans do you have in Asia?

We have been active in Asia, generally speaking. However, in terms of further development, we need to consider the impact of Japanese and Chinese competition. Hence, there is a need to look carefully at further development. Meanwhile, we are keeping our foothold in these markets, mainly the Philippines, Vietnam, Thailand and Indonesia.

What is the annual methionine production volume to be handled by Welding?

We are working on the export volume, derived from a total output of 24,000 tonnes of methionine.

With China's addition to the methionine market, what do you think of the market impact?

There will be little impact on the world's market. The Chinese production is starting with some delay, as far as I know. Meanwhile, the methionine market is growing at 3%-5% per year. With growing affluence and population, the potential increase in DL-methionine (DLM) requirement is very high. Unless there are significant outbreaks in diseases, we expect the requirement to be growing very fast. Today, the annual global requirement for DLM is at 850,000 tonnes.

Consider India, which has a population of 1.1-1.2 billion. Over the past five years, its vegetarian population has decreased from 40% to 25%. That means 115 million people more are ready and able to pay for poultry meat. The consumption will be growing along with the economic development in India.

Many new plants are established. Does your company or manufacturer have plans for expansion?

There are some possibilities for expanding production but decision planning is still on the way.

What development plans does your company have in the world?

Currently, 47% of our products are supplied to markets outside Europe. Besides Asia, we are interested to develop more business in Brazil, Columbia, Argentina and South Africa.