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Ajinomoto Establishes Meat JV in Thailand

by 5m Editor
4 March 2009, at 9:54am

THAILAND - Ajinomoto has agreed to establish a joint venture (JV) in Thailand with Itoham and Betagro.

Headquartered in Tokyo, Japan, Ajinomoto Co., Inc has announced that its consolidated subsidiary Ajinomoto Co., (Thailand) Ltd. (Ajinomoto (Thailand)) will establish a joint venture company to be called Itoham Betagro Foods Co. Ltd on 6 March 2009. The joint venture is with three other companies: Itoham Foods Inc. of Japan, Betagro Public Co. Ltd and Hoei Bussan Co. Ltd.

The new joint venture will process and sell ham and sausage. It would be expected to generate sales of approximately 1.7 billion yen (JPY) in three years from exports to Japan and domestic sales in Thailand. In addition, the joint venture plans to import Rockdale Beef, a premium brand of beef from cattle raised by Itoham in Australia, and sell it primarily to the retail and restaurant markets in Thailand.

Ajinomoto and Itoham formed a business alliance in May 2008, and the two companies have since studied ways to expand business by complementing and taking advantage of their mutual business strengths. This joint venture agreement is a part of that effort.

Betagro is a major livestock raising and processing company with swine and poultry farming operations in Thailand, and already conducts a joint venture with the Ajinomoto Group in pork and poultry processing and frozen foods.

Through this joint venture, the Ajinomoto Group expects to enjoy an advantage in procurement of meat and other raw ingredients for its seasonings and processed food businesses.