Megmilk and Agrocorp Join Forces to Tap into Asia’s Plant-Based Ingredients Market

The new Megmilk-Agrocorp collaboration marks a significant milestone in both companies’ strategic plans as they set out to redefine the plant-based food ingredients market in Asia.

Tokyo-based dairy giant Megmilk Snow Brand Co., Ltd. and global agricultural commodities company Agrocorp International Pte Ltd, headquartered in Singapore, have revealed their collaboration to forge a joint venture targeting the burgeoning plant-based food ingredients market.

Novel plant-based tech

As a significant component of Megmilk’s Medium-Term Management Plan 2025, the entry into the plant-based food business signifies a new strategic direction for the company, marking a pivot toward sustainable growth. Concurrently, Agrocorp has been seeking opportunities to enhance its plant protein extraction capacity downstream, having inaugurated its first such facility in Saskatchewan, Canada.

The new collaboration is set to establish its hub in Singapore, with a fully owned subsidiary and production plant in Malaysia. This facility will specialize in manufacturing plant protein and starch isolates, aiming to cater to the escalating demand for plant-based foods and beverages.

“We are excited to partner with Megmilk Snow Brand, one of the largest dairy companies in Japan, to further our capabilities downstream in the plant protein extraction business,” Vishal Vijay, Director of Strategic Investments at Agrocorp, said in a statement. “This is our second major investment in protein extraction after our first facility in Saskatchewan, Canada, and we hope to be able to service the growing demand in Asia for plant-based food.”

Legacy brands

Megmilk, tracing its lineage back to the Hokkaido Cooperative Creamery Association, has been a stalwart of Japan’s dairy industry for nearly a century. Following a merger in 2011 with Snow Brand Milk Products Co., Ltd. and Nippon Milk Community Co., Ltd., Megmilk solidified its market leadership in dairy products like butter and cheese.

Agrocorp, established in 1990, is a global player in agri-commodity trading. Handling an extensive portfolio of more than 30 agri-commodity products across 50 nations, it recently diversified into the plant-based ingredients business with a pea protein concentrate facility in Canada.