JBS to supply meat worth $717 million to China
Two of the world's largest meat producers signed an agreement to distribute poultry, beef and pork in the Chinese market. Brazilian JBS and China's WH Group agreed on a deal worth $717 million per year, according to Reuters. The first shipments under the agreement are expected to take place in the first quarter of 2020, announced JBS. In a statement issued Monday, the two companies said they will offer a portfolio of Friboi and Seara branded products in a deal that could reach $717 million annually. The agreement will allow JBS to have direct access to Chinese consumers through WH Group's 60,000 points of sales across the country. WH Group is the parent of Smithfield Foods Inc and the largest pork producer in China.
"This agreement reflects the maturity and evolution of our trade relations with China. It will be an opportunity for us to evolve in our supply chain in an unprecedented business model for JBS," declared Renato Costa, president of Friboi. He also said that JBS has seen changes in the Chinese consumers' profile regarding protein consumption and a growing concern for food quality, product traceability and enhanced food safety. To meet the demand from Chinese consumers, the Brazilian meat giant has developed on the ground teams in a series of partnerships and projects in China.