Milking plant-based market growth: Megmilk to tap on dairy production expertise for its new vertical

It recently entered a joint venture with Singapore-based agriculture trading firm Agrocorp International to launch its plant-based business.

Megmilk said that Agrocorp’s commodity trading expertise would enable a stable supply of plant-based raw materials needed for its new business.

In its official statement released, Agrocorp said it wanted to tap on Megmilk’s “capabilities downstream in the plant protein extraction business​.”

Megmilk’s medium-term management plan 2025 had specified its plant-based market entry as an important new growth area. 

On why the dairy brand targeted plant-based foods and other food alternatives, Megmilk believes there will be rising demand and tightening food supply due to the growing world population and environmental regulations.

Joint venture plans​

The joint venture will see the setting up of a factory in Malaysia to manufacture plant protein products that is expected to start production in late-2025, according to Agrocorp’s statement.

It will start selling plant-based intermediary products to manufacturers looking to produce end products.

Later, the joint venture plans to produce its own beverages, cheese, and other products; and is targeting export markets including Japan, South East Asia, and Oceania.

Megmilk currently holds a 49% stake in the joint venture, and investments from both is valued at USD $21 million.