Japanese trading giants Marubeni Corporation have reached an agreement with one of Japan's largest processed meat producers Nippon Meat Packers, Inc., for a JV in feed and broiler integration in Myanmar.
The joint venture will be the first involving a Japanese company entering this industry in Myanmar.
As part of the agreement feed mills will be built in Myanmar with a total production capacity of 20 thousand metric tons per year. The companies also aim to start broiler parent stock production bases and commercial broiler production bases by the end of March 2014.
The companies aim to start selling commercial broilers in 2015 with a target number of approximately 6 million per year by the beginning of 2015. By the end of March 2018 they aim to double this to 12 million per year.
Following the development of the Myanmar's economy, they are also planning to construct a plant for producing processed chicken products in the near future, which would complete the feed and broiler integration.
Marubeni said that they are looking for positive synergy on feed and livestock business in the emerging countries where significant demand is expected. They currently operate one of the biggest compound feed mill companies in Japan under the Marubeni Group.
The company stated that because of long-term economic sanctions in Myanmar, feed and livestock technology was still at a developing stage.
The Marubeni Group and the Nippon Ham Group will work together to accomplish the supply of safe and secure livestock products by introducing advanced Japanese production technologies and traceability to the country.