Japanese trading house Mitsubishi 8058.T said on Thursday it would expand its salmon farming by acquiring additional businesses in Norway and Canada, as Japanese companies continue to grow in the food sector, with a focus on protein.
Faced with volatile fossil fuel markets and in search of stable revenue streams, Mitsubishi and its rivals have been diversifying into the food business, where demand is set to grow alongside a rising world population.
"In recent years, securing food resources has become a critical global challenge driven by population growth," Mitsubishi said in a statement.
The acquisition of three companies from Norwegian Grieg Seafood ASA was made via Cermaq Group, Mitsubishi's salmon farming company with assets in Norway, Canada and Chile. It will boost salmon production to around 280,000 tons in the 2027 fiscal year, up from some 200,000 tons produced by Cermaq annually now.
The acquisition price is 10.2 billion Norwegian crowns ($988.33 million), Cermaq said in a separate statement.
Salmon is among the most popular sushi items in Japan, but the bulk of it is imported from other countries, including Norway and Chile. Japan aims to raise the share of locally sourced seafood it consumes to 94% in 2033 from 54% now.
In October, Marubeni 8002.T began selling salmon from a farm operated near Mount Fuji by its Norwegian partner, adding to the seafood business where its rivals Mitsubishi and Mitsui 8031.T are also present.
($1 = 10.3204 Norwegian crowns)
Reporting by Katya Golubkova; Editing by Sharon Singleton and Rachna Uppal
