Proterra Investment Partners Asia has made its initial direct investment in Laos, targeting the country's potential as a new hub for premium agricultural production. This investment is through Proterra Asia Food Fund 3, which closed in 2022 with over $200 million in assets. The firm is involved in a greenfield blueberry project in Paksong district, expanding its presence in Southeast Asia's high-value food sector.
The blueberry project involves Mekong Blue Singapore and its subsidiary, Mekong Blue Laos, in collaboration with berry experts from China. Their goal is to meet Asia's demand for fresh produce. Fund 3 focuses on rapidly growing categories, with berries being a key area of interest.
Market research, including data from Euromonitor International and the USDA, indicates a growing demand for fresh, healthy produce in Asia, driven by factors such as increased middle-class incomes and a focus on health. This trend supports Proterra Asia's strategy, aligning production growth with consumer preferences.
Proterra Asia Managing Partner Tai Lin remarked, "This is our first investment in Laos and a natural extension of our strategy to build high-quality, export-focused food businesses across Asia. The opportunity in fresh berries is growing, and Laos offers the right mix of climate, location, and potential to support long-term development." Lin further noted the project's significance beyond business, highlighting opportunities for local farmers and communities.
The initiative also aims to support rural development, introducing high-value horticulture to a region dependent on lower-value crops. Proterra Asia and Mekong Blue intend to create jobs, enhance agricultural skills, and contribute to Laos's economic diversification under MBS's mission of "Better Berries, Better Lives, Better Laos."
Proterra Asia plans to utilize its regional distribution and governance expertise to scale the business sustainably, with growth strategies extending into the next decade. This Laos investment follows their recent involvement in Thailand's Lanna Agro Industry, reinforcing the firm's focus on building a diversified, export-oriented portfolio in Southeast Asia.
Source: Global AgInvesting
