Tokyo-headquartered Mitsui & Co., Ltd. has spent some $150 million to take over 35.1 per cent equity interest of local Minh Phu Seafood JSC, one of the world’s biggest shrimp integrators.
Minh Phu owns two processing plants and shrimp farms equivalent to an area of 900 hectares in southern Vietnam. It has built a strong position by vertically integrating all stages from shrimp farming to processing and sales.
Mitsui’s investment is said to help the multifaceted company apply the initiatives developed inside Minh Phu Hau Giang over to the entire Minh Phu Group, and to leverage the sales networks established by Mitsui’s global group to expand the company’s sales.
Mitsui will also help Minh Phu to achieve further growth through the application of digital technology including AI in farming ponds and processing plants and the enhancement of the efficiency in shrimp supply chain from farming to marketing.
Mitsui has identified nutrition and agriculture as a new growth area under its Medium-term Management Plan. World demand for sustainable proteins is expanding along with population growth and the expansion of the middle class globally.
Through the investment, Mitsui will continue its efforts to improve productivity, stability and sustainability of supply, while adding values to food products.
In 2013, Mitsui invested in Minh Phu Hau Giang JSC, a processing plant affiliated to Minh Phu. Since then it has contributed to optimising management and operations of Minh Phu Hau Giang.
The seafood firm now accounts for approximately 20 per cent of Vietnam’s total shrimp exports. It’s extensive range of products, including value-added products, are exported to around 50 countries, including the US and Japan.
In 2018, Minh Phu’s total export revenue reached over $750 million, up 7 per cent. It exported 67,646 tonnes of seafood during the year, up 19 per cent on-year.