June 2, 2011

Brasil Foods to form joint venture with Chinese company

Brasil Foods will have a joint venture with Dah Chong Hong Limited in order to hand out BRF's goods, launch BRF processing and expand the Sadia brand in China, according to the company on Tuesday (May 31).

When implemented, Brasil Foods' operations should cover the markets of Hong Kong, Macau and mainland China. The publicly-traded Chinese partner is a subsidiary of multinational conglomerate Dah Chong Hong Holdings Limited (DCH), one of the world's largest distributors of foods, consumer goods and automobiles. DCH is well-established in the distribution of chilled and frozen foods, especially in the three markets Brasil Foods aims to cover, according to BRF.

Details of the proposed partnership are still being discussed by the two companies, but moving forward with the joint venture is a key step for BRF's growth strategy in China, said President Jose Antonio Fay.

"The opening of the Chinese market for pork imports from Brazil is excellent news for the company, but BRF has more ambitious plans for this market that has experienced such significant growth rates," Fay said. "A local partner with deep knowledge of distribution channels and retail will be instrumental in exposing our brand, and for consumers in China to get to know the quality of our products."