Leveraging Trace Element Chips
to Transform Global Animal Nutrition
Interview with Li Dejun, Vice President of Sichuan Jilongda Biotechnology Group Co., Ltd.
In the grand development history of the feed industry in China, trace elements, though small in proportion, are akin to “chips” in the information industry, determining the efficiency and safety of the entire animal nutrition system.
Founded 28 years ago, Jilongda Group is a national high-tech enterprise that has always focused on this “small world”. Recently, we had the privilege of interviewing Mr. Li Dejun, Vice President and General Manager of the Animal Nutrition Division of Jilongda Group, to hear how he transformed a small enterprise that started in Guanghan, Sichuan, into a leader in the research and production of trace elements in China, and how it is now exporting “Chinese standards” and “Chinese solutions” to the global market.
Starting with Copper Sulfate: The Pioneers in the Industry
In 1997, Jilongda was born in Deyang, Sichuan. “Our company was established in 1997, specializing in the research, production, and application of animal trace elements,” Mr. Li recalled. At the beginning of its establishment, the feed additive industry in China was just emerging, and Jilongda keenly seized the industry gap, starting with the most basic copper sulfate products.
“At that time, there was no habit of using additives and vitamins in animal husbandry,” Mr. Li mentioned. That year, through advertising on television, they promoted a compound package made from copper sulfate and ferrous sulfate, achieving immediate results in farming, with “skin looking bright and healthy”. Jilongda utilized the copper resources available in Deyang, a third-tier city, to process copper scraps into copper sulfate, providing support for Charoen Pokphand Group’s premix factory in the southwest, marking a solid first step.
Sichuan Jilongda Biotechnology Group Co., Ltd. was founded in 1997, headquartered in Guanghan, the birthplace of Sanxingdui. Focusing on four major sectors: organic trace elements, nano new materials, mineral premixes, and trace element water-soluble fertilizers, it perfectly combines fine chemicals, deep processing, and animal and plant nutrition, making it a leading enterprise in the niche field of trace elements.
Jilongda Group has 10 subsidiaries, with 5 modern production bases. Its trace element series products are exported to 31 countries and regions, serving over 6,000 high-quality customers globally, and forming long-term strategic partnerships with the world’s top 100 agricultural and animal husbandry groups, holding a market share of about 22-23% in China. The number of high-end water-soluble fertilizer distributors and planting base customers exceeds 1,000, indicating a broad market prospect.
Technology-Driven Product Iteration: Climbing the Industry’s Everest
“From a single product back then to designing zinc oxide, it can be said that Jilongda has made its own contributions to the industry regarding the use of zinc oxide to combat diarrhea in piglets…” Mr. Li introduced that Jilongda was the first to introduce the active zinc oxide technology from the petrochemical field into the feed industry, continuously promoting the reduction and efficiency of this product.
“From the initial addition of 3000 ppm of zinc oxide, to 2250 ppm, and now down to 1000 ppm for piglets, the research and development has reduced it to below 300 ppm.” Through increasing specific surface area and improving gastric retention rates, Jilongda’s fourth and fifth generation zinc oxide products have not only reduced the diarrhea rate of piglets from the industry average of 5% to below 1%, but also significantly lowered heavy metal environmental emissions.
“It’s like climbing Mount Everest; others may only reach 8,800 meters, but our process can reach the peak of 8,848 meters,” Mr. Li metaphorically stated. This relentless pursuit of excellence has allowed Jilongda to transition from basic chemicals to fine chemicals, expanding from inorganic trace elements to organic trace elements and new materials, always staying at the forefront of industry innovation.
Strategic Layout and Key Turning Points: From Regional to National Expansion
Reflecting on the company’s development history, Mr. Li shared several key turning points.
In 2008, he made a bold decision to build a factory in Shandong, “On August 1, 2008, we rented a very small piece of land here, over 2,000 square meters.” This seemingly risky decision ultimately created a miracle of “selling 35,000 tons of trace elements and over 200 million in sales in one year.”
In 2007, Jilongda published an article titled “How to Choose Quality Trace Elements”, which was hailed as the “Trace Element Declaration” by the industry, fundamentally promoting the industry’s focus on heavy metal control and quality standards. “To this day, the standards for sulfates like zinc sulfate and copper sulfate are the standards we established back then.”
The subsequent industrial layout accelerated: investing 80 million in Weifang to build a 200,000-ton intelligent premix factory; investing 120 million in Sichuan to construct a third-generation organic trace element factory; and continuously expanding into new sectors such as plant nutrition and health products for humans.
“In the additive industry, 20 years later, investing in factory production, Jilongda is still considered a leader in the industry, bold enough,” Mr. Li joked.
Innovating to Open New Tracks
Faced with current challenges such as overcapacity in the feed industry and the impact of African swine fever, Mr. Li proposed Jilongda’s breakthrough strategy: “As an additive enterprise, we need to shift from pursuing quantitative changes to qualitative changes, creating new application tracks through technological research and development.”
Jilongda invests 4%-5% of its annual sales into research and development, establishing research institutes and joint R&D centers with institutions such as Sichuan Agricultural University, Sichuan University, Huazhong Agricultural University, and the Beijing Institute of Animal Science of the Chinese Academy of Agricultural Sciences. On one hand, it delves into the basic theoretical research of trace elements, establishing bioavailability models; on the other hand, it develops new solutions targeting industry pain points.
Mr. Li provided a vivid example: a company in the north supplying meat chickens to KFC faced high defect rates due to fighting among the chickens. Jilongda reduced the defect rate by over 60% through a trace element solution. “Improving the quality of meat, eggs, and milk is the breakthrough point for achieving high-quality development.”
Currently, Jilongda has over 4,000 customers in the domestic animal nutrition sector, with a market share of over 20%, and has formed strategic partnerships with top global additive companies. The overseas market is growing at over 50% annually, with products exported to Southeast Asia, Japan, South Korea, the United States, and South America.
“Our corporate mission is to ‘provide safe and healthy life elements for humanity,'” Mr. Li emphasized. This mission drives Jilongda’s continuous investment in research and development and adherence to quality standards. The company’s values are distilled into six words: “Integrity, Excellence, Vitality.”
“Integrity means that our products must be genuine; we cannot resort to deception due to market competition; Excellence means continuously innovating and perfecting our products; Vitality means maintaining a youthful mindset and an innovative spirit.”
“We eliminate 20% of our products each year and introduce 20% new products, always having new products in reserve.”
Regarding the future of the industry, Mr. Li advised peers to pursue high-quality development: “Stop redundant construction; consider horizontal alliances, establish joint ventures, and collaborate on projects to explore high-quality development paths together.”
He emphasized that competition should be based on quality, research, and new products, rather than simple price wars. “My competition with traditional products is merely defensive; my offensive strategy lies in developing new products, new research, and new tracks. By extending the time dimension, the vitality of the enterprise will be different.”
Not Only the First in China, But Also the First in the World
After 28 years of deep cultivation in trace elements, Jilongda Group has rewritten industry standards through technological innovation, completed national layout with strategic foresight, and defined corporate value through mission adherence. From Sichuan to the whole country, from China to the world, this enterprise, with “trace element chips” as its core competitiveness, is steadily moving towards the goal of “not only the first in China but also the first in the world.” In Mr. Li’s view, this “small world” still holds infinite possibilities: “The research on trace elements is just the tip of the iceberg; the real future can be clearly developed, called ‘one meter of micro light, a hundred meters of stars.'”
In the future, Jilongda will continue to delve into the fields of biochemistry, animal nutrition and health, plant nutrition and functionality, new biological materials, microbial engineering, health foods, and cosmetics, exploring the subtle mysteries, continuously improving the value chain of the trace element industry, and providing safe and healthy life elements for humanity.
END
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