Mitsui & Co signed a share purchase agreement on June 11, 2020, to acquire a 30.4% equity stake in Hunan Xiangyan Seed Industry. This is the founding body of China's largest seed company Longping High-Tech and core subsidiary of its vegetable seed business.
"China accounts for more than 50% of the total vegetable production worldwide, making it one of the most important markets in the industry." Mitsui has been working together with Longping High-Tech for four years to promote product development collaboration, and the companies have built a trusting relationship in the process.
Through this investment in Xiangyan, the companies will further deepen their collaboration in breeding technology, and will work with Japan Vegetable Seed, a company established with Japanese seed companies that have been breeding vegetable varieties for many years, to carry out China-based development and sales of high quality, high value-added vegetable seeds including but not limited to cabbage, cucumber and pepper.
At the same time, Mitsui plans to utilize the sales platform of Japan Vegetable Seed to launch development and sales of Xiangyan's hot pepper seeds in the Asian market.
Mitsui pays close attention to needs associated with issues such as the growing demand for food as the global population increases, realizing a stable food supply system that is adapted to climate change, and the growing demand for vegetables that improve people's health and living standards. Because the vegetable seed business is thought to be part of the solution to these issues, Mitsui will position it as an area of strategic growth, and will utilize this new investment to contribute to improving the dietary habits of people in Japan, China and the rest of Asia.
For more information: 
Mitsui & Co.
www.mitsui.com
