JBS’s South American branch of the company has signed a $717.26 million deal with Hong Kong’s WH Group, parent company of Smithfield Foods, to supply fresh beef, poultry and pork per year to the Chinese market.
The first shipments in the agreement are expected to take place in the first quarter of 2020, according to JBS.
“This agreement reflects the maturity and evolution of our trade relations with China,” explained Renato Costa, president of JBS’s beef unit Friboi in a released statement.
“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.”
The deal will also give JBS direct access to 60,000 WH Group points of sale in the country.
