Danish pork producer opens China factory amid huge meat shortage
via Yahoo Finance - September 11, 2019
BEIJING (Reuters) - Top European pork producer Danish Crown opened a plant near Shanghai on Wednesday to produce packaged pork for the area's affluent consumers.
The company's first factory in China will turn frozen pork imported from Denmark into packaged, chilled product as well as bacon and sausages.
All products will be sold through Alibaba's online platforms and offline Hema stores for the first five years, said the company.
The plant is launching as pork prices in the world's top consumer of the meat hit record levels following an epidemic of African swine fever that has swept through China's huge hog herd. The disease is not harmful to people but kills almost all pigs infected.
That offers a "window of opportunity" to sell premium, branded pork, chief executive Jais Valeur told Reuters, with local prices rising and growing attention to the source of raw material.
"It helps us because we are in full control of the value chain," he said.
The company is aiming to sell its products at a 10-15% premium over local goods, he said.
Danish Crown already exports large volumes of pork to China for use by processors and has seen exports rise by about 20% already this year to 240,000 tonnes.
That looks set to rise further, with analysts at Dutch bank Rabobank predicting...