Megmilk Snow Brand Co. of Japan and Agrocorp International from Singapore are teaming up to establish a plant-based dairy ingredient factory, catering to the food and beverage industry. The facility, set to begin production in late 2025, will be based in Malaysia and will primarily produce pea-based ingredients for sale to plant-based manufacturers. Additionally, Agrocorp plans to use these ingredients in their own consumer brand.
The joint venture is a significant step forward for Megmilk, one of Japan’s leading dairy companies, aligning with its latest “medium-term management plan” to venture into the plant-based food sector. Megmilk, which will have a 49% stake in the venture, initially plans to sell the plant-based food raw materials on a business-to-business (B2B) basis. However, they also foresee opportunities to launch their own consumer-facing products in the future.
A spokesperson for Megmilk stated, “We will have the exclusive rights to distribute the plant-based food raw materials manufactured by the company within the Japanese market. Initially, we will cater to our existing users in the commercial products business and Japanese food processing manufacturers. Furthermore, we aim to develop and sell our own products utilizing these raw materials.” The spokesperson also indicated plans to expand into the global market through international product development and collaboration with Japanese food processing manufacturers.
Among the customers for the new pea-based ingredient facility is Agrocorp, which will make use of the ingredients for its plant-based brand HerbYvore. The spokesperson for Agrocorp mentioned their upcoming launch of Singapore’s first plant-based, nut-free cheese range under the HerbYvore brand, addressing the demand for dairy-free cheeses.