Brazilian meat company JBS, the world’s largest meat processor, announced this week that it has signed a €650m deal to supply meat to China. On Tuesday, JBS said it had signed a memorandum of understanding with Hong Kong-based WH Group, the world’s largest pork company, to supply it with fresh beef, chicken and pork starting immediately.
As part of the deal, JBS will supply its range of branded beef, chicken and pork products to WH Group, which has more than 60,000 sales outlets across China. JBS said the deal could be worth up to €650m in sales every year.
"This agreement reflects the maturity and evolution of our trade relations with China. We have seen changes in the Chinese consumer profile regarding protein consumption and a growing concern for food quality, product traceability and enhanced food safety. To meet this demand, we have developed on the ground teams, and dedicated partnerships and projects in China,” said Renato Costa of JBS.
WH Group is one of the world’s largest meat companies with annual sales in excess of €20bn and operating profits of €1.5bn. In 2013, WH Group bought Smithfield Foods, the largest pork company in the US, as part of a €4.3bn takeover.
China’s need for imported meat has surged following the outbreak of African swine fever (ASF), which has ravaged the country’s domestic pig herd. For 2019, China’s meat imports surged above 5m tonnes. The majority of meat imported is pork (3m tonnes) but beef and chicken imports by China have also soared.
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