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- Jatcorp (JAT) has entered into a strategic agreement to produce plant-based meat products for one of China’s largest state-owned vegetarian restaurants
- Final negotiations and production agreements are being undertaken by JAT’s joint venture company and are set to be finalised by February 2021
- Under the agreement, JAT will provide recipes & formulation and technical support for product manufacture in addition to supplying raw ingredients
- JAT will continue to produce its plant-based meat products in Australia for both domestic sales and export
- Australian market research company Euromonitor predicts China’s plant-based meat market will grow to nearly $12 billion by 2023
- JAT shares are trading at 2.6 cents each, up a sturdy 23.8 per cent
Jatcorp (JAT) has entered into a strategic agreement to produce plant-based meat products for one of China’s largest state-owned vegetarian restaurants.
Final negotiations and production agreements are being undertaken by JAT’s joint venture company and are set to be finalised by February 2021.
Under the agreement, JAT will provide recipes & formulation and technical support for product manufacture in addition to supplying raw ingredients for Shanghai Godly Vegetarian Industry.
More specifically, JAT entered into the agreement with Aofu Trading Co, a nominated buyer for Shanghai Goldy Vegetarian Industry.
Australian-based Jatcorp will continue to produce its plant-based meat products in Australia for both domestic sales and export. The company says producing directly in China will increase profit margins, reduce costs and mitigate political uncertainties.
The company also added that manufacturing in China will make it easier to meet the country’s stringent food hygiene code.
The finished products will be supplied to the Shanghai Godly Vegetarian restaurant chain, as well as other restaurants, supermarkets and catering groups across China and other locations across Asia.
JAT says it has received further potential buying interest for its plant-based meat products from other large Chinese state-owned food companies.
Australian market research company Euromonitor predicts China’s plant-based meat market will grow to nearly $12 billion by 2023.
JAT shares are trading at 2.6 cents each, up a sturdy 23.8 per cent at 11:49 am AEDT.
