Wednesday, October 17, 2012

Baolingbao approved to produce and sell IMO as new feed additive

On Aug. 27, 2012, Baolingbao Biology Co., Ltd. (Baolingbao) announced that its isomaltooligosaccharide (IMO) had been approved by the Ministry of Agriculture (MOA) to be produced, sold and used as a new feed additive in China, bringing a new profit source to Baolingbao, according to CCM’s  September issue of Corn Products China News.

Baolingbao plans to make some changes in its 50,000t/a food grade IMO production line to produce feed grade IMO as the production line's capacity is not fully utilized and shares a lot in production process with feed grade IMO, revealed Miss Lv from Baolingbao's Bond Department. In addition, according to Miss Lv, the company is undergoing procedures for a production license for the product, which is estimated to be put into market in Nov. 2012. 

IMO is promising as feed additive because it is a good substitute for antibiotics and Chinese government is phasing out the use of antibiotics species applied in feed. IMO has functions on animals such as accelerating the propagation of beneficial bacteria and inhibiting the growth of noxious bacteria in intestinal tract, speeding the digestion of nutrition and improving immunity. 

Baolingbao will get benefit from feed grade IMO thanks to not only its large potential market but also some policy preferences.
According to MOA, Baolingbao's feed grade IMO can be only applied in compound feed of egg-laying hens and the application scope of the product is 0.2%-0.4%. Since domestic output of compound feed of egg-laying fowl, among which egg-laying hens part take up the most part, is quite huge–25.2 million tonnes in 2011 according to China Feed Industry Association, the demand for feed grade IMO is quite charming. 
As to policy preferences, Baolingbao is protected as the unique feed grade IMO producer in the monitoring period years, because other enterprises are not allowed to produce or import feed grade IMO during the period according to Administrative Regulations on Feed and Feed Additive implemented on May 1, 2012. Additionally, feed grade IMO is exempted from value added tax during the monitoring period, said Miss Lv.
Overall, Baolingbao estimated that feed grade IMO would bring the company about USD0.88 million-USD1.75 million (10%-20% of the total net profit of Baolingbao in 2011) newly added net profit in 2013. 

Actually, Baolingbao wants to profit more with feed grade IMO. "We want to utilize the fiber part, protein part and corn embryo of the side product of starch sugar to produce feed, then mix it with feed grade IMO to produce oligosaccharide feed." said Miss. Lv. On Aug. 16, Baolingbao announced that one of its researches, Producing Oligosaccharide Feed with Side Products of Starch Sugar, successfully passed assessment. And Baolingbao is talking about cooperation with a domestic feed producer. If Baolingbao can successfully produce oligosaccharide feed, it will probably get more profit.

Source: Corn Product China News 1209

Main content of Corn Product China News 1209:
China's import volume of DDGS surges by 163.5% in July 2012
Chinese corn products Imp. & Exp. analysis in July 2012
Domestic market price of corn starch enjoys uptrend in Aug.-Sept. 2012
Market prices of corn products as feed enjoy uptrend in China in Aug.-Sept. 2012
Changshouhua Food presents good performance in H1 2012
Baolingbao approved to produce and sell IMO as new feed additive
Longlive Bio-technology may perform better in H2 2012 against slightly poor performance in H1 2012
Chinese VC posts bad performance in H1 2012
China's MSG price declines under increasing cost and demand in H1 2012
12th Five-Year Plan for Renewable Energy supports the development of cellulose fuel ethanol
Domestic corn suffers armyworm and typhoon disasters in Aug. 2012
China's import volume of cassava starch up 13.0% in the first seven months of 2012
… …
Corn Products China News, a monthly publication issued by CCM International on 20th of every month, reveals the driving force of news stories and deeply analyzes the influence of trends and dynamics on domestic and international corn deep processing industry.

For more information about Corn Product China News, please contact us at

About CCM
CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.
For more information, please visit
CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China
Tel: 86-20-37616606

No comments: