Megmilk and Agrocorp announce joint venture

Megmilk Snow Brand Company Limited has announced a partnership with Agrocorp International Pte Limited, a Singapore-based global agricultural commodities company. The joint venture will manufacture and market plant-based food ingredients.

In its ‘Medium-Term Management Plan 2025’, Megmilk had identified entering the plant-based food sector as an important new business area. Agrocorp too has been looking to further expand its downstream business capacity in plant protein extraction, following its first facility in Saskatchewan, Canada.

This partnership will seek to leverage the strengths of both companies, with the joint venture company established in Singapore and a wholly owned subsidiary in Malaysia, where a factory will be set up to manufacture plant protein and starch isolates. The venture aims to meet the rising demand for plant-based foods and beverages. The companies plan to infuse capital of $21 million (approximately ¥2.8 billion) in the joint venture, out of which Agrocorp will invest 51%, while Megmilk will invest 49%.

“We are excited to partner with Megmilk Snow Brand, one of the largest dairy companies in Japan, to further our capabilities downstream in the plant protein extraction business,” Vishal Vijay, director of strategic investments, Agrocorp International, said. “This is our second major investment in protein extraction after our first facility in Saskatchewan, Canada, and we hope to be able to service the growing demand in Asia for plant-based food,” he added.

A global agri-commodity firm specialising in the sale of staple food products such as wheat, pulses and sugar to leading food manufacturers in the Asia Pacific and Middle East regions, Agrocorp International has also recently launched its plant-based ingredients business. Headquartered in Shinjuku-ku, Tokyo, Masatoshi Sato is the current representative director and president of Megmilk Snow Brand.