China's COFCO to buy $100 mln pork from Danish Crown by 2020
Reporting by Hallie Gu and Dominique Patton; writing by Chen Aizhu in Singapore, editing by Louise Heavens and Jane Merriman, Reuters
November 6, 2019
BEIJING, Nov 6 (Reuters) - China’s state-owned agriculture conglomerate COFCO said on Wednesday it had agreed to buy $100 million of pork from European pork producer Danish Crown in 2020 to help ease a domestic pork shortage following a widespread pig disease.
The two companies signed a preliminary purchase agreement on the sidelines of the China International Import Expo in Shanghai.
COFCO said in a statement the deal would help it to diversify the origins of its imports and product variety, and make purchases more sustainable.
Lars Albertsen, sales director at Danish Crown, said no volumes had been agreed yet, but he said the sale was “one of the biggest deals we’ve done out here in a long, long time”.
He said it could be expanded, given the huge needs from China.
“There’s a shortage of pork so the likelihood is that it will become more,” he told Reuters.
Europe’s top pork exporter, Danish Crown has done several deals with COFCO this year, turning it into a preferred supplier, said Albertsen.
China’s huge hog herd has shrunk by 40% since African swine fever reached the country in August 2018, killing millions of pigs and pushing pork prices to record levels.
The pork shortfall in the world’s top producer is having global repercussions, driving up demand for imports of all meat and pushing Danish pork prices to their highest since 1997…
China Is Throwing the Doors Open to Meat Imports Amid Swine Fever Crisis
· Country lifted an import ban on Canadian pork and beef Tuesday
· On Monday, the Asian nation cleared imports of Brazilian offal
By Lydia Mulvany, Bloomberg
November 5, 2019
China has been boosting meat imports to offset losses of pork from a raging fever that’s killing its domestic hogs. So far this week, the country is signaling it still wants more.
On Tuesday, China lifted a ban on Canadian pork and beef that was imposed in June. A day earlier, it approved imports of Brazilian offal, which includes byproducts like organs, potentially a $2 billion annual market. Meat giants like JBS SA and BRF SA can start shipments immediately. Last month, China also signaled it could lift a ban on U.S. poultry exports.
China’s imports of protein like beef and chicken have been soaring. African swine fever may more than halve the country’s hog herd by the start of next year, and domestic retail prices are surging, indicating that shortages have begun....
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