Feed-grade Calcium Phosphate Salts Faces Great Challenges    

Currently, the major varieties of feed-grade calcium phosphate salts include dicalcium phosphate (DCP), mono-dicalcium phosphate (MDCP), monocalcium phosphate (MCP), tricalcium phosphate (TCP), sodium phosphate, potassium and ammonium salt, among which MCP and DCP accounts for nearly 80% of the world's total consumption of feed grade calcium phosphate salts, while TCP accounts for 20%. MCP, with its high content of water-soluble phosphorus, can provide a higher biological value, so its consumption is continuously increasing. However, MCP in China only occupies 10% of the feed-grade calcium phosphate salts market with 90% of it used as aquaculture feed and the rest 10% as young animal feed.
   In recent years, feed-grade calcium phosphate salts consumption by North America, Western Europe and other developed countries has kept falling, mainly due to the cost growth of feed-grade calcium phosphate salts and the substitution use of phytase and other forms of proteins. In contrast, developing countries, with its increasing meat consumption, are consuming more and more feed-grade calcium phosphate salts.

Domestic capacity is in serious surplus    

China boasts more than 80 feed-grade calcium phosphate salts companies mainly distributed in Sichuan province and Yunnan province, among which the former contributes 53% of the national total production while the later contributes 27%. In 2008, China's total production capacity of feed-grade calcium phosphate salts was 4.666 million t/a, and actually produced only 1.86 million tons - the industry has a serous overcapacity with an average operating rate of only 40%.
   In recent years, with the growth in feed output, China's feed grade calcium phosphate salts production has increased year by year at a rate of 6%, and the export volume has also risen with a small, but steady growth rate.

Future development trends   

1. Faces reshuffle    

Due to serious overproduction and fierce market competition, China's feed-grade calcium phosphate salts industry will face a reshuffle and the industry concentration will further intensify.

2. Challenged by the population of alternatives    

The first alternative is phytase, which, as an enzyme preparation produced by microbial fermentation, can break down natural organic phosphorus in animal feed to replace part use of the added inorganic phosphorus, thus reducing environmental pollution. The European Union, Japan, South Korea and some other countries have forced the use of phytase in animal feed to reduce phosphorus pollution. In China, its full implementation of the "The Discharge Standard of Pollutants for Livestock and Poultry Breeding Industry" also greatly promoted the application of phytase in feed industry. In 2008, China produced 19 000 tons of phytase (5 000 FTU/g), among which 10 000 tons were exported and the rest 9 000 tons were consumed locally, equivalent to replacing 610 000 tons of feed-grade dicalcium phosphate. In future, phytase's application fields will continue to expand with a rapid consumption increase, demonstrating strong momentum of replacing phosphates. The second alternative is bone meal, which can be used directly as phosphorus and calcium supplier, and is a stable alternative for feed-grade calcium phosphate salts. In addition, genetically modified maize, if used in combination with phytase, will greatly reduce the need of calcium phosphate in feed.  

3. Technological innovation and product diversification are keys for sustainable development   

In the future, the health indicators of China's feed-grade calcium phosphate salts will have to conform to international standards, so technology innovation and clean production will become the primary task in developing feed-grade calcium phosphate salts.

Main manufacturers of feed-grade calcium phosphate salts in China (000 t/a)
Enterprises      DCP     MCP     Total
Sichuan Lomon Corporation Co., Ltd.
                1 350    150     1 500
Yunnan Xinlong Mineral Animal Feed Co., Ltd.
                 320     30       350
Anning Jindi Chemical Industry (Yunnan) Co., Ltd.
                   220     40       260
Sichuan Chuanheng Chemical Corporation Co., Ltd.
                  -       10       100
Sichuan Mianzhu Sanjia Feed Co., Ltd.
                  120     10       130
Yunnan Copper Industry Sunward Chemicals Industry Co.,Ltd.
                120     -        120
Sichuan Hanyuan Chemical General Plant Co., Ltd.
                 100     20       120
Sichuan Mianyang Jinhong Feed Co., Ltd.
                  100     20       120
Kunming Chuanjinnuo Chemical Co., Ltd.
                 100      -        100
Guizhou Senwei Industry Co., Ltd.  
                   100     -        100
Total             2 530    370     2 900

China's output and exports of feed-grade calcium phosphate salts (000 ton)
   Year     2005    2006    2007    2008
   Output    1 520    1 650    1 720    1 860
   Export      348      391      375      408