From Follower to Leader
CJ Cheiljedang ranked first with an overwhelming lead over the rest in the standings in the market for valine, a high value-added amino acid used in animal feed. The company accomplished the rare feat in only three years since entering the valine market in 2014.
According to CJ Cheiljedang on May 29, the company topped the global valine market with a 60% market share last year. Valine is used as an additive to add essential amino acids to pigs and chickens. It is one of the four product categories (lysine, tryptophan, nucleic acids and valine) where CJ Cheiljedang is number one in the global green bio market.
CJ Cheiljedang placed first with a wide gap with other companies in three years since entering the global market for the first time while beginning to produce valine atthe plant in Shenyang, China in 2014.
"We recorded a 30% share in 2015 and a 40% share in 2016 in the global marketafter we began to operate the Shenyang plant in 2014. Last year, our market share rose to 60%," a CJ CheilJedang official said. As of last year, the global valentine market was estimated at 100 billion won.
CJ CheilJedang, which entered the market as a latecomer, was able to climb to the top with a wide margin with its competitors in a short period of time thanks to technological marketing that provides how to use valine and know-how and a large-scale production system instead ofmethods to sell products only. In particular, it is said that the company’s strategy to aggressively expand demand for valine by thinking outside the box soshifting the paradigm of the marketpaid off handsomely.
CJ Cheiljedang focused on securing new demand for valine for feed for mother pigs and chickens, while Ajinomoto of Japan and other companies that had entered the market earlier than CJ Cheiljedang mainly targeted piglets.
To this end, CJ Cheiljedang suggested an eco-friendly mixing ratio that reduces crude protein (protein with high nitrogen content) in feed and adding amino acids including valine to the feed while carrying out feeding experiments on mother pigs and chickens inChina and Europe on making a foray into the market.
Thanks to this strategy, CJ Cheiljedang was able to secure not only existing demand from Europe but also demand from large markets such as South America and China.