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Brasil Foods Ships Pork to China

by 5m Editor
29 February 2012, at 10:25am

BRAZIL - Tomorrow, 1 March, BRF is to send the first shipment of pork to China. The product, frozen boneless pork shoulder, was processed at the company’s unit in Rio Verde (State of Goias), one of only three Brazilian meat processing plants authorized to export to China.

The product is to be traded under a joint venture set up recently by BRF and the Chinese company, Dah Chong Hong Limited (DCH), for distributing products on the Chinese market, processing meat at local plants, developing the Sadia brand and operating on the retail and food service markets in Continental China, Hong Kong and Macau.

At present, BRF is authorized to export only boneless pork to China, but the company is working on licensing plants in the State of Santa Catarina, which is also authorized to ship boned pork, since the region is considered free of foot-and-mouth disease and requires no vaccination.

China is the world’s biggest producer of pork, but is unable to satisfy local demand. Access to the Chinese market is a milestone for both BRF and Brazil, providing a promising outlook for Brazilian agribusiness.

BRF and DCH were reported to be discussing a possible partnership last May. In its first year, the deal is expected to trade 140 thousand metric tons of product, with revenues of around US$ 450 million and investments in working capital.

In the first project phase, BRF is to provide production capacity, technical support and marketing for the products to be marketed under the joint venture. DCH will provide the supply and distribution chain and facilities for processing, packaging and general support services.