Tuesday, November 6, 2018

Denmark, Brazil win big Chinese meat market

Denmark’s Danish Crown and Brazil’s JBS have signed deals to supply an Alibaba on-line marketer with $1.5 billion US worth of meat over the next three years.

Alibaba’s Win Chain company said it will buy $1.5 billion of products from JBS over the next three years and $400 million worth from Danish Crown.

It is Danish Crown’s first direct-to-consumer step into China.  

As part of the partnership, Win Chain will provide JBS with Chinese market channel sales, cold chain distribution, commodity brand co-establishment plans, and big data support.

Win Chain’s contract with Danish Crown, meanwhile, expands on an earlier agreement the two sides reached in May, which has Win Chain buying the full capacity of Danish Crown’s processing plant that is currently under construction near Shanghai. 

The 17,000-square-meter plant will produce 14,000 tonnes of processed products per year.

So how did Canada's Agriculture Minister Lawrence MacAulay miss out on at least part of this deal as part of his highly-touted trade mission to China?