SEOUL, KOREA - CJ CheilJedang is stepping up its production of Soytide, high-protein fermented soybean meal-based animal feed. The company said on May 12 that it would increase the output of Soytide to keep pace with the rapidly growing market, with global production bases in such locations as Southeast Asia and China. This is largely because of the continuous rise in fish meal prices due to supply-demand imbalances.

 

The global fermented soybean meal market is currently estimated at 700 billion won, with an annual average growth rate of 5 percent 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), but their combined share is only 6 percent.

 

Comparing to fish meal, soybean meal is only half of the price, with protein content as high as 55 percent (fish meal is 65% in protein content). Given the fish meal market reaches the 10-trillion-won level, the market for soybean meal is also set to grow to a several trillion won market within a near future.

 

In order to become a leader in this market, CJ CheilJedang recently increased its fermented soybean meal capacity to 13,000 tons from 5,000 tons by establishing a production plant in Korea. It will follow up with a production base in Vietnam in the second half of the year. 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 200 billion won in annual sales revenue in this area.