This week’s feed additive update takes a look at the latest market trends of Vitamin E50 and the developments in the byproduct market.
Last week, the Glowlit algorithm recognised a spike in user interest in Vitamin E50, and issued a unique activity email to Glowlit users who follow the product. This came after an incident at Yimante, an E50 producing plant that is a joint venture between DSM and Nenter. Damaged equipment has led to a pause in output expected to last several weeks.
The Glowlit data suggests that this disruption in global supply has prompted higher demand for E50. The incident at Yimante comes amidst an already anxious market in which Chinese producer NHU raised prices for Vitamin E 2 weeks ago.
With soy continuing its rally, prices of by-product feed ingredients are going up as well. Unlike soy or even amino acids, some of these products have a limited shelf life (e.g. high fat products). Coupled with increasing ocean freight costs, this has resulted in a wide gap among prices reported in Glowlit. Countries who usually export by-products end up selling them locally for lower prices while customers in other countries relying on imports of industry sourced feed ingredients pay the premium added for sea freight and reduced supply.