Kagome Co. said Tuesday it has established a subsidiary in sunshine-rich Yinchuan in China’s Ningxia Hui Autonomous Region to produce and sell tomatoes.
The food and beverage maker, known for its ketchup and tomato juice products, owns a 60 percent stake in the new company, which is capitalized at the equivalent of approximately ¥50 million.
The new company will sell locally grown tomatoes in Beijing, Shanghai and elsewhere in China through members-only door-to-door vegetable delivery firms. This is the first time for Kagome to sell fresh tomatoes outside Japan.
The Kagome unit aims to produce 530 tons of tomatoes per year by the end of 2017 on a 4.4-hectare plot. It anticipates annual sales of ¥100 million.
According to Kagome, consumers, especially in China’s metropolitan areas, are increasingly selecting vegetables grown under conditions that strictly control the use of chemicals, and are thus believed to be safer.