Posted August. 29, 2017 07:08,
Updated August. 29, 2017 07:46
CJ CheilJedang Corp. has completed the takeover of Brazilian animal feed raw material supplier Selecta and launched "CJ Selecta."
CJ announced on Monday that it hosted the launching event of CJ Selecta brand on last Friday (local time) in Goiania, Brazil with the attendance of its Vice President Kim Chul-ha and executives. CJ announced its decision to buy Selecta in June and acquired a 90 percent stake of the company for 360 billion won.
In the event, the vice president said that the company will not be satisfied with the title of Korea’s No. 1 food company and will strengthen its global business.
Selecta produces soy protein concentrate, a key material for livestock feed. Its sales reached some 400 billion won and operating income stood at 55 billion won last year. Selecta has global sales networks in 40 countries and considered to have cost competitiveness as it is based in Brazil, one of the world’s biggest soy producing countries.
With the launch of CJ Selecta, CJ CheilJedang has completed its business portfolio as a company that produces both fermented soybean meal and soy protein concentrate. These two products are used as materials for high protein vegetable livestock feed. The company said that it plans to produce and supply various types of animal feed for poultry and pigs, and farmed fish.
CJ Select will also produce food for humans. It plans to produce edible soy protein concentrate based on (non-genetically modified organisms) Non-GMO soy and high-value added additive lecithin. Soy bean concentrate can replace meat and be used in processed foods such as dumplings and meat balls. It is suitable for vegetarian foods as its texture is similar to that of meat. Lecithin is known to promote brain cell activation and mostly used in foods, cosmetics, and drugs.
The scale of the high protein vegetable livestock feed market is about 1.6 trillion won. The market increased by 7 percent on average for the past five years. The goal of CJ is to reach over 800 billion won in sales from Korea, Brazil, Vietnam, and China by 2020. Based on this, it expects to increase its share of global soy concentrate market up to 40 percent.