Thai Union-Mitsubish JV mirrors CP Foods model

Thai Union Frozen Products’s recent shrimp farming joint venture with Mitsubishi follows in the footsteps of Thai agri-giant’s Charoen Phokphand Foods, analysts told IntraFish.

In an announcement on Tuesday, Thai Union’s subsidiary, Thai Union Feedmill, said it will be forming a shrimp farming and hatchery joint venture called TMAC with its Thai Union shareholder Mitsubishi as part of efforts to improve shrimp supply and traceability.

As Thai Union has already developed its downstream operations, this JV will allow Thai Union to integrate backwards and strengthen its shrimp supply chain, just as CP Foods has been doing, said Prasit Sujiravorakul, an analyst at Bualuang Research.

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