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- Jatcorp (JAT) terminates Oppenheimer agreement and shifts to manufacture plant-based meat products in China instead of importing them from Australia
- The ASX-lister has engaged a manufacturer via a non-exclusive contract on the basis its products had been “very successfully received”
- Oppenheimer and JAT entered a 50:50 joint venture in 2019 to develop its products and negotiate entry into the Chinese market
- The move is set to bring the business back to being wholly-owned and avoid navigating risks associated with importing Australian goods into China
- Jatcorp shares closed today’s session down 4.76 per cent trading at 2 cents.
Jatcorp (JAT) has terminated its agreement with Oppenheimer as it shifts to manufacture its plant-based meat products in China instead of importing them from Australia.
The ASX-lister has engaged a manufacturer via a non-exclusive contract on the basis its products had been “very successfully received” by major Chinese vegetarian restaurants, hotels and food retailers.
The company said it is now in the process of determining production capabilities to meet the demand and the manufacturer will produce the products when ordered and at prices negotiated at the time of order.
Broadly, Jatcorp affirms manufacturing in China also reduces political and business risks associated with clearing Australian-made goods through the Chinese border.
The announcement comes roughly two years after JAT and Oppenheimer established a 50:50 joint venture company to develop a range of plant-based meat products and negotiate potential production agreements in the country.
Since then, JAT has entered into an agreement with Aofu Trading to produce said products in China and assist in sourcing manufacturers and dealing with restaurants.
The new arrangements mean JAT’s plant-based meat business and profits would instead be wholly retained within the company but that it expects to work with Oppenheimer on further developments.
Jatcorp shares closed today’s session down 4.76 per cent trading at 2 cents.
