Under the transaction, Sumitomo has acquired a 50 per cent equity stake in Emerald.

The remaining 50pc will continue to be owned by the existing Emerald directors and staff.

The placement of shares will take place effective from March 2010.

The value of the shareholding was undisclosed.

Alan Winney, chairman of Emerald, said the investment allowed Emerald to accelerate its growth and further build its range of services.

"We anticipate that this strategic alignment with global powerhouse Sumitomo will provide Australian growers with unrivalled access to the premium Japanese market, as well as many other key Asian markets where Sumitomo already has investments in flour milling and other grain processing assets," he said.

Mr Winney added that operationally for Emerald and its grower customers it was business as usual.

"The Emerald name, office locations and key personnel will all remain as they are today," Mr Winney said.

"We anticipate our capacity to enter into further joint ventures, add new offices, create new products and grow our business will be accelerated by this formal linkage with Sumitomo, and the access this gives us to its worldwide resources.

"The financial strength of Sumitomo dwarfs that of our main publically listed competitors in Australia and is likely to lead to a change in the whole dynamic of the Australian grains industry.

"Sumitomo’s investment will provide it with an aligned accumulation base in Australia and a linkage with a company that has a strong reach to the farm gate.

"At the same time, it will allow us to continue with what we are good at, and to maintain Emerald’s core philosophy of working with growers and grower groups to ensure the products developed are tailored to meet their needs and to deliver best possible prices and services."