More Brazilian fresh beef, pork and poultry is headed to China, thanks to a new partnership announced between JBS S.A. and China's WH Group, a publicly traded Chinese meat and food processing company.
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.
JBS's first shipments to China under this agreement will start in the first quarter of this year.
“This agreement reflects the maturity and evolution of our trade relations with China,” said Renato Costa, president of Friboi. “It will be an opportunity for us to evolve in our supply chain in an unprecedented business model for JBS.”
Costa said 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 this demand, we have developed on the ground teams, and dedicated partnerships and projects in China," Costa said.