Mitsubishi Corp., a prominent Japanese trading house, has announced a strategic partnership with Archer Daniels Midland (ADM), a leading U.S. grain trader. This collaborative effort will triple Mitsubishi Corp.’s yearly grain handling capacity. They’re predicting a 50% increase by fiscal year 2030. The agreement would raise Mitsubishi Corp.’s existing volume from 20 million tonnes to a stunning 30 million tonnes.
As part of the agreement Mitsubishi Corp. will increase its grain procurement operations in Brazil. This decision furthers the company’s plan to use ADM’s long-standing Brazilian export infrastructures and expansion into other countries. In doing so, it flexibly maximizes the operations of the grain. Its subsidiary, Mitsubishi Corp. Rt. To date, the company’s involvement has strengthened its influence in the world market for grains.
This collaboration is further evidence of the strong strategic fit between Mitsubishi Corp. and ADM in the global grain business. Through strategic collaboration, the two companies hope to better position both companies to grow and simultaneously improve their operating efficiencies. Through the agreement, Mitsubishi Corp. will run ADM’s international export hubs. This participation will make logistic and supply chain management more efficient, a key factor in better serving an urgent need to produce more grains.
Japan’s Mitsubishi Corp. is another example, and it’s intent on establishing a bigger stake in the global grain market. They’re using this partnership to help get them there. The deal is set to expand Mitsubishi’s grain handling capacity. It shows that the company is serious about the global growth strategy it’s proposed. Mitsubishi Corp. is in Brazil’s vibrant grain industry. We believe this strategy will serve them to diversify their sourcing further and best position them to meet the surging global demand for agricultural products.