Mitsubishi Corporation and Thai Union Frozen Group (TUF Group) have agreed to the establishment of a shrimp farming Joint Venture Company (JV) in Thailand.

This JV will provide an enhanced network for procuring good quality shrimp raw materials. Mitsubishi will hold 49% of shares in the JV, while Thai Union Feedmill (TFM), a TUF subsidiary and second largest shrimp feed manufacturer in Thailand, will hold 51% of shares.

The project targets a total annual increase in production capacity of up to 10,000 tonnes by the fiscal year of 2018. The JV also plans to enter into the hatchery business from fiscal year 2013 for full trace-ability and food safety.

Current global demand for both wild and farmed shrimp is approximately 6.5 million tonnes per annum. However, due to economic growth and increasing populations in emerging countries, demand is expected to rise, outstripping supply in the coming years. Safety and security requirements for shrimp products are also likely to become more stringent.

 In this context, MC and the TUF Group will work together through the JV to grow the shrimp business, covering operations from upstream to downstream, with the aim of securing safe and reliable shrimp. The goal is to be well positioned to respond to imminent increases in global demand for shrimp products, while maintaining a high level of traceability.