China¡¯s lysine productive capacity exceeds 700,000 MT/year (calculated at a nutrient content of 98.5%), but only 50% of the capacity is utilized. The utilization is as low as 30% in Fengyuan. Due to falling returns from hog production, lysine market looks dull, causing some producers to suspend operation. On the other hand, corn price is on the rise because of the state protective procurement. Therefore, there is big risk in the company¡¯s expansion.