19 December 2012

Mitsubishi and Thai Union Frozen Group set up shrimp farming joint venture in Thailand

- Enhanced network for procuring good quality shrimp raw materials
- Mitsubishi will hold 49% stake in the JV
- Total project cost is estimated at 3 billion yen
JV also plans to enter hatchery business from fiscal year 2013

19 December 2012 - Mitsubishi Corporation(MC)and Thai Union Frozen Group ( TUF Group), one of the largest manufacturers and exporters of marine products in Thailand, have agreed to set up a shrimp farming Joint Venture Company (JV) in Thailand this December. This JV will provide an enhanced network for procuring good quality shrimp raw materials. MC will hold 49% of shares in the JV, while Thai Union Feedmill (TFM), a TUF subsidiary and 2nd largest shrimp feed manufacturer in Thailand, will hold 51% of shares.
The total project cost is estimated at 3 billion yen, including plans to purchase existing mid-scale shrimp farming companies and set up new ones along the Thai coast, all giving due regard to environmental concerns. The project targets a total annual increase in production capacity of up to 10,000 metric tons by fiscal year 2018. The JV also plans to enter the hatchery business from fiscal year 2013 for full trace-ability and food safety.

Current global demand for both wild and farmed shrimp is approximately 6.5 million metric tons per annum. However, due to economic growth and increasing populations in emerging countries, demand is expected to rise, outstripping supply in the coming years. Safety and security requirements for shrimp products are also likely to become more stringent.

In this context, MC and the TUF Group will work together through the JV to grow the shrimp business, covering operations from upstream to downstream, with the aim of securing safe and reliable shrimp. The goal is to be well positioned to respond to imminent increases in global demand for shrimp products, while maintaining a high level of traceability.

MC had already entered the salmon farming business in Chile last year. The decision to join forces with the TUF Group to enter the shrimp farming business in Thailand is consistent with MC’s strategy to enhance its procurement network for safe and secure marine products through the diversification of cultured fish species and production locations. This strategy will help MC to respond to increasing global demand for food products and to fulfill the role of providing a stable supply of resources to the market.

Source: Mitsubishi Corporation