TOKYO -- Japanese produce wholesaler Farmind will partner with a Taiwanese agricultural development concern to expand trading of fruit and vegetables with the island.
The two parties are set to sign a basic agreement Friday for a venture that will ship vegetables and fruits grown in Taiwan to Japan. The plan is to increase imports and exports of produce to around 10 billion yen ($89 million) each, more than doubling bilateral trade volume from current levels.
Tokyo-based Farmind has 14 logistics centers in Japan, and sells produce to around 30,000 stores in the country, including supermarkets and convenience stores. It will import carrots, onions, pineapples and other items from Taiwan and sell them to retailers and restaurants looking to broaden their offerings and stabilize procurement by diversifying sourcing locations.
The Taiwanese company, founded last year with the aim of revitalizing agriculture, hopes to go full-bore on exports to Japan via the tie-up.
Ahead of this partnership, Farmind signed a basic agreement with Chuan Lian Enterprise, operator of Taiwan's largest supermarket chain, Pxmart. Japan-grown apples, highly regarded for their quality, may be exported to Taiwan under the deal.
Farmind will encourage producers in both markets to obtain Global G.A.P. certification to assure quality.
The Japanese company is also thinking about broadening procurement and supply arrangements to South Korea. By having three markets supplement each other's offerings, Farmind seeks to optimize production and distribution.