August 27, 2018

Mitsubishi subsidiary to acquire US pork processor

Indiana Packers Corporation (IPC), a subsidiary of Mitsubishi Corporation, will be acquiring 100% stakes of Specialty Foods Group, LLC (SFG), an American meat processor.

Established in 1914, SFG produces and markets processed meat products such as ham and sausage in the US. Its wide-ranging customer base includes leading brands like "Kentucky Legend".

Likewise, IPC is a fully-integrated pork processor and owner of one of the largest hog slaughtering facilities in the US. Through its acquisition of SFG, IPC aims to not just expand its processed meats business but also to further strengthen the integration of its production chain.

With pork being one of the most essential sources of protein in the US, as well as in Asia, Latin America and other regions, demand is expected to continue its solid growth pattern. Additionally, the US, where its economic growth is forecasted at 3% per annum, remains one of the main consumer markets for pork.

All these factors, including high productivity in feed grain raw materials such as corn, are reasons to expect the US to maintain its global competitiveness for pork production. In 2017, Americans purchased an estimated 9.5 million tonnes of pork and the figure is expected to reach 10.5 million tonnes in 2027.

Mitsubishi aims to leverage its fresh food (meats and marine products) business to achieve sustained growth by building a strong production, procurement and sales network for fine animal protein products. Along with the expertise in building up meat production and processing across the MC Group globally, this will propel its livestock and meat business.

The acquisition is expected to stimulate greater synergies that allow IPC to build up and alleviate the integration of functions across its production chains, thereby contributing to enriching the food choices available to consumers.

Source: Asia One