Bunge increases soybean focus with joint venture
market through a joint venture with the Thai-based Charoen Pokphand
Group.
The processing giant announced on Friday that the agreement will grant it a majority interest in the running of a third soybean processing plant within the country, aided by Charoen's Chinese subsidiary, Chia Tai. The decision reflects growing consumption rates in China for products derived from soybean, particularly in the market for edible oils. According to the company, the trend is being driven by the ongoing commercialisation of the country's meat and feed industries. This demand, says the US Department for Agriculture, has seen Chinese consumption rates for soybean oil rising at an annual rate of 13 per cent since 1999. To cater for such growth, the plant, located in Tianjin in North East China, will aim to quadruple production to serve key markets in the region. Using Bunge's own North and South American supply chains, the plant will aim to crush 4,000 metric tonnes of soybean a day, up from currently just 1,000 tonnes. Christopher White, Bunge's CEO in Asia was confident that the joint venture will be a significant step in consolidating its position within the country. "We expect that the plant, given its strategic location and potential synergies with our existing plants in Rizhao and Nanjing, will enable Bunge to better serve China's expanding meal and oil markets," he stated. "This joint venture is consistent with Bunge's strategic intent to expand its integrated business in China and to work with established and respected partners in the country's most dynamic regions."
