May 17, 2023

The prospect of China's organic trace minerals market

Alltech recently issued its Agri-Food Outlook 2022 and reported 2021's global feed production volume at 1.2355 billion tonnes.

The output of organic trace mineral products may pale in comparison. However, it does not mean that this market is negligible. According to a report by Global Market Insights, it is estimated that by 2024, the sales of organic trace minerals for feed in the global market will exceed US$750 million.

There are many types of trace mineral products, and different trace minerals play different important roles in the growth of animals. However, under normal circumstances, the absorption and utilisation rates of trace minerals are very low. While the inclusion rates of inorganic trace minerals are often high, their efficiency is low. Additionally, their strong oxidative effects can result in the serious loss of other nutrients in the premix or compound feed.

Organic trace minerals refer to simple complexes or chelates formed by the combination of metal elements and organic complexes. As a new type of organic mineral additive, they have been widely employed due to their stability, high biological potency and easy digestion and absorption. They are commonly used by large feed producers, as a single product or in combination with inorganic trace minerals.

Currently, China produces close to 100,000 tonnes of organic trace minerals, with a market value of about ¥1 billion (US$145 million).

Organic trace mineral producers in China include international companies including Alltech, Zinpro and Novus, and domestic producers including XJ-BIO, Chelota and Guangzhou Tianke Technology.

Alltech's organic trace mineral products are mainly the Bioplex series that include copper, iron, zinc and manganese proteinate products. Novus' Mintrex series products consist chiefly of metal chelates of hydroxy methionine, whereas Zinpro's Performance Minerals series products are mostly complexes with amino acids.

XJ-BIO is one of the earliest Chinese companies to focus on the application of trace minerals in feed formulation. Its main products include amino acid complex (chelate) compounds and hydroxy chlorides. XJ-BIO's production capacity in 2019 was 21,600 tonnes. The company has actively developed overseas markets in recent years and achieved remarkable results.

Sichuan Chelota focuses on the research, development and application of trace minerals. Its main products include methionine chelate, iron glycinate and ferrous fumarate. Chelota has a production line with an annual output of 50,000 tonnes of organic trace minerals. It also has the biggest trace mineral premix factory in China. The Shandong-based facility has a production capacity of 200,000 tonnes per year.

Shanghai DeBon's key products are glycine chelate (complex) compounds and organic compound ores. It is China's top organic trace mineral producer in terms of sales, with 35%-40% of market shares. Its combined output of various products is nearly 40,000 tonnes, with products exported to over 20 countries and regions outside China. DeBon is gradually developing its presence in the Southeast Asian market.

Guangzhou Tianke's organic trace mineral products include mineral glycine chelates and metal chelates of methionine.

Looking ahead, China's organic trace mineral market has much potential with the support of government policies and the trend for good animal production.

As organic trace minerals become increasingly popular — especially with the advancement of technology and the discovery of more raw materials — producers expect the cost of production to drop significantly.

In the next three to five years, market players expect 40-50% of trace mineral feed additives to be organic types.

By 2030-2035, organic trace minerals are very likely to completely replace all inorganic products in the market.

- Shi Tao, eFeedLink