In a dynamic move to bolster its presence in the global food industry, Japanese conglomerate Mitsui & Co. has secured an undisclosed stake in Egypt’s renowned Wadi Poultry. This strategic acquisition, cemented through an agreement with Wadi and its subsidiaries, propels Mitsui into the thriving poultry and agri-food sector, marking a significant expansion in its diverse food portfolio.
A Synergistic Venture with Wadi Poultry
Based in Giza, Egypt, Wadi Poultry, an integral part of the Wadi Group holding company, operates across three pivotal segments: Mazereh (food production and agri-food), Dawagen (poultry processing and breeding), and Sina’at (animal feed). The company’s comprehensive range encompasses olive oils, olives, pickles, pastes, vinegar, chicken farming, and animal feed production.
Mitsui’s strategic acquisition positions Wadi Poultry’s holding company as an associated entity, signaling a deepening collaboration between the Japanese conglomerate and the Egyptian food giant. While the specific financial terms and the size of the investment remain undisclosed, the synergy between Mitsui’s global influence and Wadi Poultry’s regional expertise promises a venture with vast potential.
Integrated Production Strategy: Mitsui’s Vision Unveiled
This strategic move aligns seamlessly with Mitsui’s overarching vision of developing an integrated production business, covering all facets from feed grain procurement to broiler production, processing, meat packing, and food manufacturing and distribution. Mitsui, along with its subsidiary Prifoods Co., has been actively implementing this integrated approach, especially in Japan and other Asian countries.
In a released statement, Mitsui emphasized the crucial role of chicken meat in emerging economies. With rising demand driven by population and economic growth, chicken meat stands out due to its high feed efficiency, fewer religious constraints, and relatively affordable pricing. Mitsui’s foray into the poultry industry underscores its commitment to catering to the evolving needs of diverse and dynamic markets.
Strategic Expansion in the Food Sector
This strategic investment follows Mitsui’s consistent pattern of expanding its footprint in the food sector. In 2023, the conglomerate acquired an undisclosed interest in Italy’s prominent rice supplier, Euricom. Building on its global acquisitions, Mitsui purchased a majority stake in Japan’s frozen desserts maker Goyo Foods in 2021 and invested in Vietnam’s seafood business Minh Phu in 2019.
Wadi Poultry and Mitsui: Fostering Growth and Value
Wadi Group, acknowledging the investment on its website, expressed its ambition to expand Wadi’s agri-business both locally in Egypt and for export, considering Egypt as one of the largest and fastest-growing markets in Africa. With a revenue of US$350 million and a workforce of 2,600 people, Wadi Group’s partnership with Mitsui is poised to foster growth, enhance value, and contribute to the evolution of the global food and nutrition landscape.
As Mitsui continues to solidify its position as a key player in the food industry, the strategic stake in Wadi Poultry stands out as a testament to its commitment to innovation, collaboration, and sustainable growth in the dynamic world of agri-business.
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