New Hope partners with Mitsui for raw materials
Japanese firm Mitsui & Co. will establish a joint venture with China's agribusiness giant New Hope Group Co. to buy and sell ingredients for animal feed in China.
The new company will be set up this month and start with a working capital of 60 million yuan (US$8.8 million) and an initial staff of 35.
The new company will import soybean cake and other auxiliary feed ingredients and use domestic sources of corn and other main feed ingredients.
The goal of the new joint venture will be sales of 2 million tons of feed ingredients worth 2.4 billion yuan ($352 million) in the fifth year of business.
With the Chinese economy expanding, consumption of diary products and meat is on the rise, and this in turn has created a rising demand for animal feed.
New Hope Group is a leading supplier of animal feed as well as meat, eggs and dairy products in China.
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