August 17, 2011
Japanese trading house Marubeni Corp said Tuesday (Aug 16) it has signed a strategic alliance agreement with China's Sinograin Oils Corp and Shandong Liuhe Group to strengthen its presence in China's livestock feed business.
Under the alliance, the three firms will jointly set up feed mills across China to tap increasing demand in the country, where western food is growing in popularity and meat consumption is rising.
Marubeni plans to supply grains to the joint venture as well as to the two Chinese partners, building new sales channels for its grain business with a global procurement network.
The Japanese company sees China as one of the most strategically important markets for its food-related business. It aims to boost its global grain sales to 25 million tonnes in fiscal 2012 ending March 2013 from 20 million tonnes in fiscal 2010.