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2. China stops investigation into dumping charge against lysine from Indonesia. (Trade).

After finding no proof, China has stopped investigation into dumping charge against lysine monohydrochloride feed grade (MFG) from Indonesia. China has conducted investigation into alleged dumping of lysine by Indonesia for 18 months The announcement about the stoppage of the investigation was issued by the Chinese Ministry for Foreign Trade and Economic Cooperation (MOFTEC) on September 29 in 2002.

Indonesia itself has denied the allegation as it is not in line with the WTO rule both in legal and technical aspects. Indonesia, therefore, could now export lysine to China without anti dumping surcharge. Until 1990, Indonesia still relied on import for its entire lysine requirement, but now lysine has been produced in the country and it has even exported part of its production.

Lysine is an organic chemical belonging to the amino acid group produced from molasses. The organic chemical functions to prevent a decline in appetite for food. Lysine also is effective to help recover the effectiveness of enzymes. Lysine is also used an auxiliary material for animal feed. In the pharmaceutical industry it is used as culture media in the process of formulating food supplement in vitamin and minerals.

Lysine industry is resistant to crisis as shown in the volume of its exports that reached 102,903 tons valued at US$ 89.1 million in 1997. In the period of 1997-2001, exports of lysine from Indonesia fluctuated but tended to increase with an annual growth of 7.6%. After declining in 1998, exports rose in the following three years (1999-2001) from 61,591 tons valued at US$ 64.5 million in 1999 to 110,.203 tons valued at US$ 164.7 million in 2001. The increase in exports followed a surge in demand from animal feed producers the past several years.

Meanwhile, in the same period, the average price of exports (FOB) fluctuated but tended to rise. The price peaked at US$ 1,.536.9 per tons in 1998. In 2001, the price of lysine exports averaged US$ 1,494.4 per ton.

Hongkong the largest buyer

The country has exported a large portion of its lysine production., Exports have been shipped to around 40 countries Among the importing countries, Hongkong is the largest country of destination. Exports to that territory totaled 24,691 tons valued at US$ 35.3 million or 22% of the country's total exports in 2001 Other major buyers of lysine from Indonesia include the Netherlands and the United States respectively importing 21,189 tons and 10,966 tons of that commodity that year. See the following table.

The country has a number of companies operating in lysine processing industry. The factories of the companies are generally integrated with food seasoning factories producing monosodium glutamate (MSG) and glutamic acid (GA). One of the companies is PT Cheil Samsung Indonesia (CSI). PT Cheil Samsung Indonesia is a PMA or a joint venture between Astra Group (25%), and foreign partners Cheil Sugar & Company, Ltd. (65%), and Samsung Corporation (10%) both from South Korea. Cheil Samsung with factory in Pasuruan, East Java, also produces MSG with an annual capacity of 20,000 tons, liquid organic fertirilizer with an annual capacity of 120,000 tons, solid organic fertilizer 6,000 tons, single cell protein 5,000 tons and gypsum 5,000 tons.
Table - 1
Development of lysine exports from Indonesia, 1997-2001

Year Volume Change Value Average price
 (tons) (%) ('000 US$) (FOB),

1997 102,903 - 89,122 866.1
1998 60,043 -41.7 93,902 1,563.9
1999 61,591 2.6 64,589 1,048.6
2000 92,957 50.9 108,681 1,169.1
2003 110,203 18.5 164,689 1,494.4
Average growth (%) 7.6

Source: CBS/Data Consult

Table - 2
Exports of lysine by countries of destination, 2001

Countries of destination Volume Value
 (tons) (US$'000)

Hongkong 24,691 35,378
South Korea 3,594 5,301
Thailand 3,356 5,207
The Philippines 2,380 4,127
Malaysia 2,186 3,188
The Netherlands 21,189 35,395
The United States 10,966 12,808
Canada 2,210 2,543
China 5,982 8,267
Pakistan 1,938 2,726
Britain 1,108 2,305
Germany 1,823 3,041
Belgium 4,558 5,678
Australia 3,476 6,014
Others 20,746 32,711
Total 110,203 164,689

Source: CBS/Data Consult
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Publication:Indonesian Commercial Newsletter
Geographic Code:9CHIN
Date:Nov 5, 2002
Previous Article:1. Retail business growing competitive. (Trade).
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