Company said global net price increase would be effective immediately
Evonik said on October 11 that it would increase the net price of its GuanAMINO guanidinoacetic acid (GAA) product globally by 15%, effective immediately.
GAA is used to enhance energy metabolism in livestock production. GuanAMINO provides farm animals with the natural creatine precursor GAA, which supplies creatine in the best way to animals, improving their performance, ensuring optimal nutrient utilization and therefore return over feed costs. Creatine is vital for vertebrates as it contributes to ensuring that high energy demanding cells (particularly muscles) are supplied sufficiently.
Evonik launched GuanAMINO in September 2020 after its former supplier terminated its agreement. The end of the previous arrangement opened options for Evonik to further develop the use of GAA in animal nutrition and supply the global market with its own GAA product, it said.
The company did not provide a reason for the price increase, but Rabobank reported in March 2020 that the COVID-19 pandemic would likely affect feed additive prices.
“The biggest impact of coronavirus will be on animal health and feed additive prices, due to China’s role in markets like vitamins, threonine and lysine,” Rabobank said at the time. “These industries have been impacted by plant closures, causing a price rally for some products.”
Also in March 2020, Evonik declared force majeure for its threonine amino acid product, ThreAMINO. And, in November 2019, Evonik declared force majeure for methionine production, and temporarily shut down its methionine manufacturing plants in Antwerp, Belgium, after an issue with the supply of hydrocyanic acid. It resumed production two weeks later.