September 17, 2009

Japan's Mitsui inks feed deal with China's New Hope Group

Japan's Mitsui & Co. and Chinese agribusiness giant New Hope Group have formed an alliance that will focus on operations such as importing feed ingredients into China.


The cooperation will extend to joint procurement and sales of feed in China, with Mitsui supplying compound feed technologies and access to distribution networks.


Demand for dairy products and meat have grown in China, as income and standard of living there improves, driving the need for stable feed supplies.


To meet this demand, New Hope Group seeks to tap the procurement resources of Mitsui, which purchases agricultural supplies on a global scale. Mitsui is also expecting to benefit from the synergy of the partnership.


New Hope Group, which handles 13 million tonnes of compound feed annually, aims to increase this figure to 30 million tonnes after five years and boost its market share from 10 percent to 15 percent.


The companies will also consider expanding their cooperation to such business areas such as livestock, dairy, chemicals and financial operations.