New Hope Group allies with Japan's Mitsui Feed Materials
Japan firm Mitsui & Co. has formed an alliance with Chinese agribusiness giant New Hope Group that will focus on such operations as importing feed ingredients into China.
Their cooperation will also extend to joint procurement and sales of feed in China, with Mitsui supplying compound feed technologies as well as access to distribution networks.
Increased demand for dairy products and meats in China and the improving standard of living is spurring the need for stable feed supplies.
To grow with this increasing market New Hope Group seeks to tap the procurement resources of Mitsui, which purchases agricultural supplies on a global scale. Mitsui, meanwhile, expects to benefit from the synergy resulting from the partnership.
New Hope Group, which handles 13 million tonens of compound feed annually, aims to increase this figure to 30 million tons after five years and boost its market share from 10% to 15%.
The companies will also consider expanding their cooperation to such business areas as livestock, dairy, chemicals and financial operations.
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