Ajinomoto teams up with food company

03-06-2008 | |

Ajinomoto Co. and Itoham Foods Inc. have formed a business alliance in a drive to cut costs amid soaring materials prices.

Itoham will use Ajinomoto’s amino acid products and
by-products resulting from the manufacture of fermented goods as animal feed in
its meat operations. Ajinomoto will use Itoham’s meat and other products to make
processed foods.

In addition, the two firms will consider joint
procurement and the sharing of product distribution infrastructure. They will
also study jointly developing gift products.

Through the alliance,
Ajinomoto and Itoham hope to reduce costs and raise their product value at a
time when the food industry faces soaring materials prices and increasing
consumer awareness of food safety.

The alliance is expected to push up
the two firms’ combined operating profits by 4 billion yen in the four years
through March 2012, they said.

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