July 29, 2008

Nippon Meat makes rare venture into tuna farming

Japan's top meat processing company Nippon Meat Packers Inc. will set up a 10 million yen (US$93,172) joint venture on Monday with a local seafood processing firm and other partners to rear bluefin tuna in Japan.

Nippon will own 44 percent of the venture through a subsidiary, with the remaining 66 percent to be split among a seafood processor, a fishermen's cooperative and other partners.

The local seafood processor will purchase young fish and produce feed, while the fishermen's co-operative will raise the tuna. Nippon Meat's subsidiary will process and sell the fish.

The new firm, based in Uwajima, Ehime, will supply bluefin tuna to local sushi restaurants and supermarkets at the end of 2009, and aims for a sales target of 1 billion yen (US$9.3 million) in 2010.

The company's move is prompted by a global shortage of marine supplies, as it seeks to secure its own supply source. However, it is uncommon for a meat processor to enter the aquaculture business, said other marine processors, who have also started raising tuna to cope with market demand.

Nippon Meat Packers Inc. is Japan's leading processor of meat such as beef, pork and chicken. The company has sales operations in 12 countries and production facilities in Japan, China, Australia, and the US.