Olam International and Mitsubishi Corporation (MC) have formed a joint venture called MC Agri Alliance (MCAA) in Japan for the supply of agricultural and food products.
The joint venture will import and distribute coffee, cocoa, sesame, edible nuts, spices, vegetable ingredients and tomato products to Japan.
Mitsubishi will have 70% ownership of the joint venture while Olam will own30% in it.
MC Agri Alliance will leverage the strengths of both companies.
The joint venture will capitalize on Olam's global supply chain network in agricultural production, origination, processing and trading, for sustainable agricultural products and food ingredients as well as Mitsubishi's wide distribution and sales network in Japan.
With the establishment of this new JV, Olam and Mitsubishi intend to expand their network for responsibly sourced raw materials and improve their distribution system for agricultural and food products in Japan and across the globe.
MCAA, which is slated to become operational by 1 October 2016, will be able to offer an extensive range of food products that are likely to appeal to Japanese consumers.
The joint venture partners will focus on their existing customers as the new company will seek to strengthen its customer relationships in Japan.
Olam deals in coffee, cocoa, edible nuts and other agricultural and food raw materials, and has a network of more than four million farmers, most of whom are smallholders.
MC Living Essentials Group has developed a vertically integrated business model in Japan which specializes in food business segments ranging from raw materials procurement to distribution and retail.
Mitsubishi opines that with the addition of Olam's wide ranging product portfolio and its sustainability and traceability track record to that platform could lead to the creation of a strong partnership for procurement and delivery of food products and ingredients to consumers in Japan.
