Ajinomoto Announces Agreement to Establish Joint Venture in Thailand with Itoham and Betagro

The new joint venture will process and sell ham and sausage. It would be expected to generate sales of approximately 1.7 billion yen in three years from exports to Japan and domestic sales in Thailand.

03/03/09 Ajinomoto Co., Inc. announced that its consolidated subsidiary Ajinomoto Co., (Thailand) Ltd. would establish a Joint Venture company, “ITOHAM BETAGRO FOODS CO., LTD.” with three other companies - Itoham Foods Inc. , Betagro Public Co., Ltd. (Betagro) and Hoei Bussan Co., Ltd. on March 6, 2009.

Purpose of the Establishment

The new joint venture will process and sell ham and sausage. It would be expected to generate sales of approximately 1.7 billion yen in three years from exports to Japan and domestic sales in Thailand. In addition, the joint venture plans to import Rockdale Beef, a premium brand of beef from cattle raised by Itoham in Australia, and sell it primarily to the retail and restaurant markets in Thailand.
 
Ajinomoto and Itoham formed a business alliance in May 2008, and the two companies have since studied ways to expand business by complementing and taking advantage of their mutual business strengths. This joint venture agreement is a part of that effort.
 
Betagro is a major livestock raising and processing company with swine and poultry farming operations in Thailand, and already conducts a joint venture with the Ajinomoto Group in pork and poultry processing and frozen foods.
 
Through this joint venture, the Ajinomoto Group expects to enjoy an advantage in procurement of meat and other raw ingredients for its seasonings and processed food businesses.