Illinois-based agri-giant Archer Daniels Midland (ADM) has agreed to establish a 50:50 joint venture with Japanese company Kao Corp in the middle of this year. The two companies must now negotiate a more detailed plan for the venture, which aims to produce Kao’s anti-fat diacylglycerol (DAG) oil in the US. 

DAG oil was launched in Japan two years ago and swiftly increased sales that are expected to reach ¥10bn by the end of this March. Sold as Healthy Econa Cooking Oil, the DAG ingredient helps to prevent the development of fat deposits in the body and both companies believe that there is enormous potential for the product on the US market, where it could be used as an additive in snack foods and frozen products.

Further details of the JV will be announced at a later date, but pilot production is expected to commence in November, in a customised plant built by ADM.