It recently entered a joint venture with Singapore-based agriculture trading firm Agrocorp International to launch its plant-based business.
Megmilk said that Agrocorp’s commodity trading expertise would enable a stable supply of plant-based raw materials needed for its new business.
In its official statement released, Agrocorp said it wanted to tap on Megmilk’s “capabilities downstream in the plant protein extraction business.”
Megmilk’s medium-term management plan 2025 had specified its plant-based market entry as an important new growth area.
On why the dairy brand targeted plant-based foods and other food alternatives, Megmilk believes there will be rising demand and tightening food supply due to the growing world population and environmental regulations.
Joint venture plans
The joint venture will see the setting up of a factory in Malaysia to manufacture plant protein products that is expected to start production in late-2025, according to Agrocorp’s statement.
It will start selling plant-based intermediary products to manufacturers looking to produce end products.
Later, the joint venture plans to produce its own beverages, cheese, and other products; and is targeting export markets including Japan, South East Asia, and Oceania.
Megmilk currently holds a 49% stake in the joint venture, and investments from both is valued at USD $21 million.