Leading South Korean food maker CJ Cheiljedang Corp. has become the largest producer of lysine in Brazil and South America for the first time in 10 years after entering the markets.
CJ Cheiljedang established its plant in Piracicaba, Brazil, in 2007. The company’s market share is more than two times higher than that of its competitors. Since Brazil accounts for 60 percent of the South American lysine market estimated at 200,000 tons as of this year, there is a saying that capturing the Brazilian market means a grip on the South American market. Lysine is one of the five green bio items that CJ Cheiljedang ranks first in the global market, along with tryptophan, nucleic acid, valine and soy protein concentrate.
The recent changes in the external environment is also desirable. Japan’s Ajinomoto, which is one of the three largest lysine producers in Brazil together with CJ Cheiljedang and Evonik, has practically withdrawn from the market and the exchange rate of Brazilian Real is becoming steady after the Brazilian government has changed to market-friendly stance.
CJ Cheiljedang is the only company that has a production base in South America, China, Southeast Asia as well as the United States among lysine producers. Accordingly, the company is expected to maintain the number one spot in the global market in the future. It is backed by the company’s growth in the Brazilian market.
CJ Cheiljedang forecasts that its amino acid sales in Brazil this year will grow 9 percent to 130 billion won (US$115.3 million) compared to a year earlier.
CJ Cheiljedang has also launched work to expand its lysine factory in Brazil to bolster its market power.