ABSTRACT
The world lysine industry is one of the first and most successful biotechnology industries that have emerged since World War II. Building upon scientific discoveries made in the late 1950s, the industry has experienced rapid growth and changes in market structure. Patents and production secrecy restricted the number of companies to three food manufacturers until 1990. Since then at least seven new companies have entered the lysine industry. As technological barriers have fallen, backward vertical integration into starch manufacturing and firm-specific assets in marketing bulk animal feed ingredients have given advantages to experienced agribusiness firms. Despite the increase in sellers, five companies continue to dominate global production. At least four episodes of global price fixing have been documented in the lysine market, and current levels of concentration make future cartelformation quite feasible.
