China’s specialty feed protein market is expected to experience a 7% CAGR. Louis Dreyfus Company (LDC) has initiated the construction of a new fermented soybean meal production line in Tianjin, China. LDC’s investment aligns with China’s new national standard for fermented soybean meal, which will come into effect on October 1, 2024.
Louis Dreyfus Company (LDC), one of the world’s leading grain merchants, has embarked on the construction of a new production line for fermented soybean meal in Tianjin, China. This development reflects LDC’s commitment to meeting the rising demand for diversified feed proteins within China, leveraging advanced microbial fermentation technology.
The new facility will be located at LDC’s oilseed processing complex in Tianjin, covering approximately 11,000 square meters. Utilizing a multi-strain probiotic fermentation process, the production line is designed to improve soybean meal’s protein content, digestibility, and palatability, supporting animal health and growth performance. The plant is expected to be operational by the second half of 2025 and forms part of LDC’s broader strategy to diversify its revenue streams with value-added products. China’s specialty feed protein market is projected to grow at a compound annual growth rate (CAGR) of 7%, providing significant opportunities for LDC.
This project marks LDC’s initial foray into the specialty feed protein sector. However, it builds on the company’s prior ventures, including a joint project with the Haid Group in 2019. Together, they launched Tianjin Rongchuan Feed Co., a joint venture specializing in high-end aquafeed production, including fermented soybean meal and shrimp feed. Production at Rongchuan commenced in 2021 with an annual capacity of 200,000 tons.
LDC’s latest investment aligns with China’s new national standard for fermented soybean meal, which will come into effect on October 1, 2024. Developed by the Chinese Academy of Agricultural Sciences and key industry players such as Hubei Broad Live-stock Technology, this standard elevates product quality and safety across the rapidly expanding feed protein market.
The standard outlines specific technical criteria for fermented soybean meal, including testing methods and component specifications such as stachyose and β-conglycinin. This regulatory framework is crucial for maintaining high quality and safety as fermentation processes become increasingly complex and widely adopted.
A delegation from the National Animal Husbandry Station recently visited Broad Live-stock.
Industry data indicates that China produced 983,200 tons of fermented soybean meal in 2023, with the market valued at approximately CNY 6.25 billion (about USD 0.89 billion). With demand for high-quality feed proteins continuing to surge, LDC’s strategic investment positions it to capture a significant share of this growing market.
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