Mitsui, with head office in Tokyo (Japan), decided some days ago to invest in the world’s largest shrimp farming company, Industrial Pesquera Santa Priscila (IPSP), based in Ecuador, and already has concluded the related contracts. The acquisition price for the shares is USD 360 million. Following the process, the Ecuadorian company will become an equity method affiliate of Mitsui.
The investment, reported Mitsui, will be done through a holding company situated in Singapore, owned by IPSP’s founders. The operation is planned to be executed within the fiscal year ending March 2024, after the fulfillment of condition precedents, including obtaining the necessary approvals, they explained in a press release.
Through this investment in IPSP, company engaged in the production, processing and sale of shrimp, genetics and feed production, Mitsui aims to become a leading global player in the shrimp industry by extending the value chain to upstream such as breeding, feed and farming.
A collaboration with many objectives
In Ecuador, the world’s center of shrimp farming industry for export, Mitsui and IPSP’s founders will jointly collaborate to pursue increased productivity and efficiencies, to optimize operational excellence and best serve customer’s needs.
According to them, the partners will work to maintain a high focus on social responsibility, respect for the environment, high product quality, and will continue strengthening IPSP to lead modernization of the growing industry.
The impact of this acquisition on Mitsui’s consolidated financial results for the fiscal year ending March 2024 is expected to be minor.
Rising demand for sustainable protein
For Mitsui, company chaired by Kenichi Hori, shrimp is an important product that will meet the rising demand for sustainable protein, as the world’s population and economy grow, and responds to health-conscious consumers with its low-calorie and high-protein content, with a short production cycle and high feed efficiency.
Mitsui has identified Wellness Ecosystem Creation as one of its Key Strategic Initiatives in its Medium-term Management Plan 2026. By providing healthy food, Mitsui will contribute to the improvement of people’s quality of life.
Through this investment, Mitsui will work to add value to the business cluster in the food and nutrition area, and aim to support the realization of people’s richer and brighter lives by enhancing health and wellbeing through food.
Focusing on the potential of the shrimp industry, which is becoming increasingly industrialized and concentrated, Mitsui has invested in Minh Phu Seafood, the world’s largest shrimp processing company (based in Vietnam) in 2019 and has been strengthening the shrimp processing and sales business.
Utilizing their global operating locations, network and information resources, Mitsui is multilaterally pursuing business that ranges from product sales, worldwide logistics and financing, through to the development of major international infrastructure and other projects.
Controlled environments from natural oceanic streams
Santa Priscila produces, markets and exports shrimp and tilapia. Its farms are located in oceanic water areas, not influenced by population centers and have first class logistics and land access. “Our tilapia and shrimp are grown free-ranging, in healthy and controlled environments from natural oceanic streams. They are fed a diet based on algae and vegetable grains, 100% free of hormones, antibiotics and toxic chemicals,” they explain.
“We fish daily and cold pack the same day, taking care of quality and freshness. In everything we do we are driven by love and respect for your health and that of nature,” they added.