Johannesburg — CANADA-based Lallemand has evolved into a leading global developer of specialty yeasts and bacteria for human and animal nutrition, as well as for fuel ethanol and fermented beverages.

Locally, the group acquired Anchor Yeast, which supplies yeast, dough raising and fermentation technology to the consumer, bakery, wine and alcohol businesses, in 2005.

SA Bioproducts is the only South African company exploiting third-generation biotechnology to produce essential amino acids for the animal nutrition and human pharmaceutical mark ets. Its primary production is amino acid lysine -- an essential amino acid included in monogastric animal feeds (primarily for pigs and chickens) to improve efficiency and health, and lessen the environmental impact.

The union between SA Bioproducts and Lallemand was almost predestined. SA Bioproducts has its origins in a 1993 joint venture between AECI and the Industrial Development Corporation that created AECI Bioproducts and built SA's first lysine plant for R270m. Today the facility is valued at R450m.

The KwaZulu-Natal sugar industry -- recognised internationally for its low-cost production techniques -- supplies the high-test molasses needed for production and the company now exports more than 50% of its output to the US, the Indian Ocean Islands, Africa and the Middle East. Counted among its local customers are the feed manufacturers that supply the pig and poultry industries.

When AECI quit its noncore businesses in the late '90s, management acquired AECI Bioproducts and changed the name to SA Bioproducts. Terry Rosenberg, a well-known Durban businessman, acquired the majority stake two years ago via investment holding company Oakbrook Investments.

Amino acids are the building blocks for proteins. Living beings digest food into amino acids before these are converted into the proteins required for food and health. Amino acids are vital in balancing the protein profile of feed. Without them, animals would become nutritionally deficient.

On another level, pure amino acids in feeds reduce the nitrogenous waste arising from intense animal production. As crude protein is reduced, the diminishing nutritional value must be adjusted by adding pure amino acids.

SA Bioproducts MD Martin Perling says the major driving forces behind growing the amino acids markets are environmental impact and economic efficiency.

As crude protein levels in feed drop, there is a corresponding growth in demand for established and new amino acids.

Rosenberg says the sale bears out the potential he had initially seen in the company, its management and staff.

Since November 2006 the lysine price on world markets has climbed from € 1,1/kg to € 1,55/kg, representing a significant growth in foreign exchange earned for SA.

Lallemand CEO Jean Chagnon says that in addition to amino acids, SA Bioproducts has entered the human pharmaceutical market in collaboration with a German company to supply a significant portion of the world's demand for iso-leucine.