Entry to and expansion of the pork production business in North America
In December 2012, ITOCHU entered the pork production business in North America by acquiring a 33.4% stake in HyLife Group Holdings LTD. (Hylife), which is one of Canada’s largest hog producers and pork meat processors. (As of the March 31, 2021, ITOCHU's share was 49.9%.) HyLife is a vertically-integrated pork production company (from feed processing, to hog production, and pork processing and distribution of pork products), based mainly in the Manitoba Province, Canada. Hylife leverages this vertically integrated production system to independently manage feed and pig breeds and to achieve the stable supply of safe, secure, high‒quality products to markets all around the world. Hylife positions Japan in particular as a priority market and opened HyLife Pork Table restaurant in Daikanyama in September 2016. By collecting customer feedback and developing value added speciality pork which better meets the needs of Japanese consumers, HyLife has now grown to be Canada’s No. 1 exporter of fresh chilled pork products to Japan. In December 2019, HyLife formed a business partnership with Charoen Pokphand Foods PCL, a company of the Charoen Pokphand Group (CP Group), which is ITOCHU's strategic partner, and in May 2020, Hylife acquired the hog production business of ProVista Group, one of Canada's largest hog farming operations, and also acquired a 75% equity interest in U.S.-based Prime Pork LLC (now HyLife Foods Windom LLC), expanding its pork production locations in the North America region. Alongside further expansion of pork production capacity in North America, we plan to collaborate with the CP Group, one of the world's largest food producers, to expand Hylife's sales of safe, secure pork in the Asia market, where consumption is expected to continue growing.