March 1, 2012

In the wake of the formation of its venture with local firm Dah Chong Hong, Brasil Foods sends its first shipment of pork to China on March 1.

Brasil Foods is currently licensed to export boneless pork to China. However BRF said that it is working on licensing plants in the state of Santa Catarina. These facilities could potentially be authorised to ship boned pork, since the region is considered free of foot-and-mouth disease and requires no vaccination.

"Access to the Chinese market is a milestone for both BRF and Brazil, providing a promising outlook for Brazilian agribusiness," the company said.

Under the partnership with DCH, the Chinese firm will work with Brasil Foods to develop the Brazilian group's Sadia brand and distribute products in the retail and foodservice markets in continental China, Hong Kong and Macau.

BRF will provide production capacity, technical support and marketing while DCH will provide the supply and distribution chain and facilities for processing, packaging and general support services.

In its first year, BRF said it expects the venture to trade 140 thousand tonnes of product, with revenues of around US$450 million.