US — American multinational food processing and commodities trading corporation, Archer Daniels Midland Co. and Marfrig have received regulatory approval for their PlantPlus Foods joint venture.
The approval gives PlantPlus Foods the green light to offer a range of finished plant-based food products across North America and South America.
“We’re excited to take this important step forward as we bring together the tremendous resources of two leaders in nutrition,” said Marcos Molina, founder and chairman of Marfrig.
“PlantPlus Foods is born of two companies that had a common vision to create a new venture offering a complete portfolio of delicious, sustainable plant-based foods for consumers across the Western Hemisphere.”
Marfrig, a beef and beef patty producer, owns 70% of the PlantPlus Foods joint venture and will be responsible for finished product production and distribution.
To this end, the company will leverage its facilities in South America, mainly in Várzea Grande, in the Brazilian state of Mato Grosso, and its facilities in the United States.
“Consumers today are demanding food that is good for the environment, for the body, for the mind, and for the development of a better you — while still being delicious,” said Juan Luciano, chairman and chief executive officer of ADM.
“Backed by the vast capabilities of ADM and Marfrig, PlantPlus Foods brings together a unique blend of innovation, scale, insight and expertise in this exciting, fast-growing market.”
ADM, the owner of the remaining 30% of the joint venture, will supply technical expertise, application development and an array of plant-based ingredients, flavors and systems from its specialty protein complex in Campo Grande, Mato Grosso do Sul.
Other supplies will also be availed to PlantPlus from ADM’s network of US-based ingredient and flavor facilities, including its new pea protein plant in Enderlin, North Dakota, US.
The PlantPlus joint venture was officially launched by ADM and Marfrig in May this year and has since been waiting to receive necessary approvals before starting production.
At the time, Marcos Molina, founder and chairman of Marfrig said, “PlantPlus Foods will be ready from day one to meet customer needs in this fast-growing market.”
According to data from Meticulous Research, the plant-based food market is expected to reach US$74.2 billion by 2027, at a CAGR of 11.9% during the forecast period of 2020 to 2027.
Increasing incidences of intolerance for animal protein, growing urbanization with new consumer aspirations, increasing vegan population, and significant venture investments in plant-based product manufacturers are some of the key factors driving the growth of the plant based products market.
Moreover, the growing focus on research & development and new product launches by plant-based products and alternative protein manufacturers; and growing demand from emerging economies – Asia-pacific, Latin America, and the Middle East and Africa – are expected to create lucrative growth opportunities for the players operating in this market.
“The demand for proteins, from both plants and animals, is growing across the globe, and Marfrig and ADM will continue individually to help meet those needs in all the ways we do today,” says Molina.
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