Betagro Group partners with Shwe Me to shape the future of the Myanmar's integrated agricultural and food industry
The Shwe Me Group is owned by controversial
business tycoon Aik Htun
Betagro Group | 23 November 2018
Betagro Group partners with Myanmar construction material and logistics giant Shwe Me Group to shape the future of the country’s integrated agricultural and food industry
Betagro Group, by Betagro Public Company Limited, announced it has signed a memorandum of understanding (MOU) with Myanmar contruction material and logistics leader Shwe Me Group to form a joint venture company named Betagro (Myanmar) Company Limited.
Built on the Shwe Me Group's expertise in logistics, import-export, and warehousing in Myanmar while acting as a major distributor of SCG products, in combination with Betagro Group's strengths in the integrated agricultural and food industry, the new joint venture is dedicated to transforming and advancing agro industry and high-quality food production in Myanmar.
The MOU is a result of confidence in the business and growth potential of both parties, sharing a common goal of driving further development of agriculture and livestock production in Myanmar, making high-quality and safe food more accessible to consumers and promoting a better quality of life. Signing at the ceremony, which was held recently at the Betagro Tower in Bangkok, Thailand were Vasit Taepaisitphongse, Betagro Group's CEO & President, and Tun Lwin, Managing Director of the Shwe Me Group.
Established with a registered capital of 18.3 million USD, Betagro Public Company Limited has an 80 percent share in Betagro (Myanmar) Company Limited, with Shwe Me Group holding the rest of 20 percent stake, the new joint venture plans to invest in a number of upstream businesses, including a feed mill with a production capacity of 12,000 tons per month, a breeder farm and a pig farm in Yangon.
"Betagro is committed to producing food of superior quality and safety, and with reasonable and justifiable prices," said Mr Vasit. "Realizing the potential for growth of the agricultural, livestock and food sector in CLMV, we have found that Myanmar is one of the region's emerging economies with lucrative opportunities in different aspects. The country has fast developing infrastructure, tax privileges ideal for foreign investments and the next generation who are aware of and embrace positive changes. Most importantly, the rise of this demand growth is driven by their growing purchasing power."
"The integration of strengths and efforts in this joint venture company demonstrates confidence in the entrepreneurial spirit and abilities of a Thai business like Betagro. As a leader in food manufacturing in Thailand, Betagro possesses a wealth of experience, expertise, and know-how both in terms of product quality and manufacturing technology. We have also pioneered internationally recognized quality and food safety standards, and most importantly, we always adhere to the business code of ethics and integrity. The combination of Shwe Me Group's experience and expertise, especially its ability to provide logistics services and export bean-related products as main ingredients in animal feed for more than 20 years, will not only enable the newly established company to set higher production standards for farm produce and livestock in Myanmar, but also make high-quality products more accessible to Myanmar consumers. Moreover, the joint venture will help create jobs and incomes as it improves the local economy for local people, resulting in a better quality of life," said Mr Vasit.
Mr Lwin said, "The Myanmar government has the policy to develop the country's agricultural sector, which is considered fundamental to improving the well-being of the majority of the population, ensuring the country's food security and making it into the main income source. Our country is very well-positioned in many areas including natural resources and the fertile land for agriculture, skilled workers and competitive labour rates. However, the overall production capacity within the country's agricultural sector today still lacks essential know-how and expertise, especially in terms of manufacturing, management and the use of advanced technology. As a leader in agriculture and food production in Thailand, Betagro Group is operating an integrated agro-business, entailing animal feed, livestock, animal healthcare, and high-quality food products for export and domestic consumption for more than 50 years. Its quality standard is respected internationally. Therefore, we are confident in the potential of Betagro."
Today, Betagro Group led by its international business unit is fostering trade and investment in the agricultural and food sector in neighboring countries including Laos, Cambodia, and Myanmar. With a representative office located in Yangon, the Group has started its business presence in Myanmar since 2013. Here, it has been exporting animal feed and breeding sows from Thailand to Myanmar, manufacturing sausages under a co-branding partnership, C&B, and distributing animal pharmaceutical and healthcare products.
Post a comment