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
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.
Main content of Corn Product China
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
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
12th Five-Year Plan for Renewable Energy supports the development of
cellulose fuel ethanol
Domestic corn suffers armyworm and typhoon disasters in Aug. 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.
About CCM
CCM is dedicated to market research in China
CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China
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
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