April 13, 2010


New Hope collaborates with Mitsui for raw materials


Japan's Mitsui & Co. will establish a joint venture with China's agribusiness giant New Hope Group Co. to buy and sell ingredients for animal feed in China.


The new company will be set up this month and start with a working capital of RMB60 million (US$8.8 million) and an initial staff of 35. The venture will be owned 45% by Mitsui's Chinese unit and 55% by a subsidiary of New Hope Group.


The new company will import soycake and other auxiliary feed ingredients and use domestic sources of corn and other main feed ingredients. The goal of the new joint venture will be sales of two million tonnes of feed ingredients worth RMB2.4 billion (US$352 million) in the fifth year of business.


With the Chinese economy expanding, consumption of dairy products and meat is on the rise, and this in turn has created a rising demand for animal feed.


New Hope Group is a leading supplier of animal feed as well as meat, eggs and dairy products in China.