China-based Zhejiang Jiaxin Silk Corporation has signed a Joint Venture contract with Tongxin New Era Gardening and will be investing 300 million Yuan in mulberry plantations.

Jiaxin New Era Sapling, the new JV, will be engaged in business in mulberry plantations, which will include buying and sale of trees, creating a market for mulberry saplings, and other related leasing services.

Jiaxin Silk will have a 70 percent share in the JV, which will have a registered capital of 150 million Yuan.

Since mulberry leaves are the common feed of silkworms, the new entity will provide them to Jiaxin Silk’s cocoon bases in Guangxi and Yunnan provinces. This will, in turn, increase the raw material supply to the company.

Normally, silkworm cocoon harvesters do not remain occupied throughout the year since cocoons are collected around four times a year. However, the new JV will be able to overcome this problem and improve its labour efficiency by asking its employees to do other work like buying mulberry samplings, during the non-harvesting period.