November 8, 2019
COFCO China to import US$100 million in pork by 2020 from Danish Crown
The agreement is part of China's continued efforts to supplement its diminishing pork supply due to the spread of African swine fever (ASF), reported Reuters.
The US$100 million preliminary purchase agreement between COFCO, China's state-owned agriculture conglomerate and major European pork producer Danish Crown was signed at the China International Import Expo in Shanghai.
COFCO said the agreement is part of the conglomerate's efforts to diversify its import sources and make more sustainable purchases.
Lars Albertsen, sales director at Danish Crown, said it was one of the biggest deals made, although exact import volumes have not been decided in this preliminary agreement.
The new deal is one of several agreements made between COFCO and Danish Crown.
Denmark pork prices have seen record highs since its peak in 1997 as import demands have risen from the shortage of pork supply in China.
Albertsen said Southeast Asia has also seen a growing demand for pork as ASF spreads rapidly there. He added that European pork production has slowed down with ASF cases reported in the eastern part of the continent.