Nissin Foods invests in local hydroponics to boost supply of RTE Vegetables

Nissin Foods Company Limited (Nissin Foods) has recently invested in ValleyFarm Holdings Limited (ValleyFarm), an indoor hydroponic farm in Hong Kong.
The investment will be used to build a new farm with upgraded facilities for hydroponic vegetable production. While ValleyFarm’s products are currently available in supermarkets in Hong Kong, the new farm will commence operation within this year and target to increase its production capacity by 10-folds in 3 years. Nissin Foods considers it as an opportune time to meet the growing market demand for fresh, tasty yet convenient food amid the COVID-19 pandemic.
ValleyFarm is a pioneer for indoor hydroponic farm which is accredited by the Agriculture, Fisheries and Conservation Department (AFCD) since 2019. It operates as a one-stop shop from vegetables plantation to the selling of indoor hydroponic vegetables locally in Hong Kong under the brand of ‘ValleyFarm’.
After the capital injection, Nissin Foods will hold 80% shares in ValleyFarm and the ValleyFarm’s founder, Ho King Yin Edwin, who is also in charge for management and R&D, will hold the remaining 20% shares.
Kiyotaka Ando, Executive Director, Chairman and CEO of Nissin Foods said, “We have been looking for good opportunities to invest in order to enrich our product portfolio and broaden the customer base of the Group. ValleyFarm fits well into our instant food business as well as the fresh-cut vegetable business under development. Capitalising on the management expertise and distribution network of Nissin Foods to create synergy, our investment will improve the prospect and operational efficiency of ValleyFarm, in turn further expanding the revenue stream and enhancing the overall competitiveness of the Group.”
Using hydrophonics, ValleyFarm’s vegetables are clean and pesticide-free, and are ready for consumption anytime. Currently, vegetables like kale, butter lettuce and Japanese green leaf are mainly being sold in medium-range to high-end supermarkets and available in a salad mix or single type of vegetable in cup, bag and box.
According to AFCD figures, locally produced vegetables only contributed 2% of the daily supply of 2,361 tonnes of vegetables in Hong Kong in 2019. The Group sees good market potential in locally produced RTE vegetables.
Apart from the recent investment in the local hydroponic farm, Nissin Foods also announced the setup of its first production line on pre-packaged RTE fresh-cut vegetables in Hong Kong earlier this year to meet the growing demand for healthy, delicious and convenient food. The new production line is under construction in the Group’s chilled and frozen food production plant in Tai Po Industrial Estate, and production is expected to commence within this year.