Nisshin: A dominant role in feed

by Suzi Fraser
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Nisshin Feed Inc. is active in the production of animal and aquatic feeds and feed additives. It has successfully differentiated its feeds by specializing in natural products, such as herbal hog feeds and layer feeds for the production of vitamin-enriched eggs. Nisshin’s Ito-Meito and Oto-Hime brand aquafeed for eel and yellowtail have a strong market presence and the company provides extensive technical support to both livestock and fish farmers.

In October 2002, Nisshin Feed reached an agreement with Marubeni Shiryo to merge their feed operations, thereby creating Japan’s largest animal and aquaculture feed company.

The transition should be smooth since the companies are already partners in two joint venture feed production businesses.

Marubeni, which is slightly larger, will have 60% ownership and Nisshin Seifun Group 40%. Marubeni has 1,250,000 tonnes of feed sales, worth Y55.1 billion and Y29.4 billion in assets as compared with Nisshin’s 1,110,000 tonnes, worth Y49.3 billion in sales and Y21.8 billion in assets.

The new company, Marubeni Nisshin Feed, will command a 10% share of the animal feed market and 25% of the aquafeed market with sales of Y105 billion.

Osamu Shoda, president of Nisshin Seifun Group, said the combined operations would benefit from rationalized utilization of facilities, strengthened R&D and sales resources and efficiency gains at the administrative level.

Final agreement was expected in April 2003 and the merger to be implemented in October 2003.