By Gerelyn Terzo, Global AgInvesting Media
Singapore-based Proterra Investment Partners Asia, a private equity firm that invests from farm to fork, has just announced its largest investment so far. Through the Proterra Asia Food Fund 3, the firm has backed Lanna Agro Industry Co., or LACO, a key producer and exporter of frozen edamame in Thailand. While Proterra described the deal as its largest to date, it is keeping the precise size of the investment close to the vest. Proterra was spun off of Cargill subsidiary Black River Asset Management back in 2016.
Launched in 2019, the Proterra Asia Food Fund 3 closed in 2022 with $200 million in assets under management. The closing came in the wake of Proterra’s Food Fund 2, which secured $700 million in assets, and Food Fund 1, which attracted $460 million in capital.
Based in Chiang Mai, Thailand, LACO has earned a reputation for high-quality products and responsible farming methods. The firm has cultivated strategic partnerships with thousands of contract farming households throughout Northern Thailand. Its scale and high standards have earned it a spot as a supplier to premium customers in both Japan and the U.S., positioning Thailand as a key origin country in the bustling global frozen edamame market.
Edamame is essentially an immature soybean harvested before it hardens. Known for its sweet and nutty flavor, this legume has emerged as a high-value crop. Thailand has emerged as a key player in the frozen edamame trade, leveraging its attractive growing conditions to become a major exporter, even surpassing China. This has secured Thailand’s place as a key origin country for premium customers in markets like Japan and the U.S. As demand for healthy snacks and plant-based foods grows, edamame’s role has become increasingly important.
Proterra will now spearhead LACO’s expansion into Europe and North America, two markets seeing explosive demand for healthy snacks and plant-based foods. LACO’s supply chain network also delivers social and environmental benefits by providing thousands of farming households with a stable and more profitable alternative to traditional crops like rice.
Of the investment, Proterra Asia Managing Partner Tai Lin stated, “LACO is a strong, well-established business with clear potential to scale further as global demand for healthy and plant-based foods continues to rise. This investment reflects our strategy of backing trusted operators across Asia’s food value chain who are positioned for long-term growth.”
Proterra intends to broaden this network of contract farmers and also introduce and monitor additional ESG targets. The latest deal catapults the number of deals for Proterra’s Food Fund 3 to over a dozen, including recent commitments to Health Lab in Australia, Meatbox in South Korea and Silk in China.
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