Joint Venture ADM and Vland - food tech news in Asia

Global nutrition leader, ADM (the Archer-Daniels-Midland), announced the establishment of a joint venture with Qingdao Vland Biotech Group, a leading producer of enzymes and probiotics, aiming to capture growing Chinese demand for probiotics products.

The 50-50 joint venture will manufacture and sell probiotics products, bringing together expertise and experience from both parties, covering a full range of technology, production, and commercial capabilities, from pre-clinical trial design and manufacturing to go-to-market strategy and execution. At present, the joint venture is subjected to regulatory approval and is expected to be launched in the first half of 2022.

In China, the market demand for probiotic products appears to increase significantly recently. Chinese consumers are becoming more aware of the strong linkage between the health of the gut microbiome and their overall health. In early February 2020, China’s National Health Commission and National Administration (version 5) recommended the use of probiotics and gut microecological modulators in COVID-19 patients to maintain the balance of intestinal microecology. Probiotics have shown good results in regulating innate immunity and improving inflammatory conditions.

“Retail demand for probiotics in China is estimated to be US$1 billion in 2022, with annual growth of more than 9%, and we believe this new venture is perfectly positioned to play a leading role in meeting that demand,” said Mr. Vince Macciocchi, president of ADM’s Nutrition business. “Vland is quite excited to partner with ADM to explore the promising market of probiotics products,” said Mr. Aron Chen, CEO of Vland.

Vland Biotech Inc., based in Qingdao, is one of the leading biotechnology companies in China. the company specializes in three product categories: enzymes, probiotics, and animal health products. It is reported that Qingdao Vland Biotech has developed an innovative product together with Evonik, to improve water quality in aquaculture. Vland will be responsible for production and Evonik for exclusive marketing. The innovative product will be officially launched in the Chinese market by the end of 2021.

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