As of March 2025, prices for importing amino acids in the United States are on the rise, largely due to global supply chain problems and international trade developments. Reports show that prices have increased by about 5% since the start of the year, with further rises expected soon.
Amino acids are crucial for industries like animal feed, food additives, and pharmaceuticals, and their prices can be greatly affected by international trade, especially between the U.S. and China. China is a major producer of amino acids, making it key to the global supply and pricing.
Ongoing trade tensions between the U.S. and China create a sense of uncertainty in the market. Tariffs and trade obstacles are pushing up costs throughout the supply chain, affecting U.S. importers and users, which in turn drives up amino acid prices.
In early February, just before the Lunar New Year celebrations, the U.S. amino acid market faced instability due to changing demand and supply concerns. Many purchasers decided to stock up to avoid any potential shortages, which helped stabilize prices temporarily. At the same time, major manufacturing areas in China scaled back operations for the holiday, worsening supply chain issues and affecting the worldwide availability of amino acids.
Moreover, planned maintenance closures at key amino acid production facilities in Asia and the Americas have tightened supplies. There were significant shut-downs at Archer Daniels Midland Company (ADM) and Evonik Industries in mid-February, causing short-term production disruptions, particularly for lysine, methionine, and threonine—important amino acids for both feed and pharmaceutical sectors.
With around 65% of amino acid imports coming from China, U.S. buyers have limited options when faced with supply issues or price hikes. This scenario poses challenges for purchasing and may lead to exploring other sourcing methods.
The animal feed sector, which makes up almost 70% of amino acid imports, is particularly impacted by these price increases. Feed manufacturers warn that these climbing costs could soon be passed down to livestock producers, possibly resulting in higher prices for meat and dairy products for consumers.
Experts believe that these market conditions will likely continue at least until the second quarter of 2025. As global trade relations change and production facilities return to full capacity after maintenance, it remains unclear whether prices will calm down or keep rising.
Your go-to for supply chain report news updates: The Supply Chain Report. For international trade tools, see ADAMftd.com.
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