Finland’s HKScan establishes new JV in China

Finland-based meat company HKScan has signed an agreement with Zhejiang Qinglian Food to establish a joint venture (JV) in China to introduce its 100% Finnish pork products.

Founded in 2001, Qinglian Food offers pork meat brands in China and controls the entire value chain from primary production to processing, sales, and marketing.

HKScan is said to be the first Finnish company to enter the Chinese premium niche market.

Through the new JV, HKScan intends to expand its footprint in the Chinese market by providing meat products such as sirloin and tenderloin, as well as other food products that were earlier confined to the Nordic region.

HKScan CEO Jari Latvanen said: “This joint venture opens up a completely new, one-of-a-kind market for Finnish pork.

“By commercialising and offering products in the premium category, we are taking the world-class expertise of Finnish pork producers to a whole new level of added value.

“This creates new revenue opportunities throughout our entire production chain and builds confidence in the international competitiveness of Finnish food production.

“Competition is fierce all around the world, and China is no exception – only the most competitive products make the cut.

“Our key competitive advantage is our diligent control of the entire value chain from farm to fork, which has convinced our Chinese partners of our reliability.”

Both companies will focus on selling HKScan’s Rypsiporsas (Omega-3 Pork) products in the Chinese market.

The Finnish company intends to commence exports from the first half of this year.

The company has set an initial target to sell around three million kilograms of pork within the first year and plans to triple the volume by 2020.

Last year, HKScan received approvals from the Chinese food authorities to export its meat products from Finland to China.

HKScan currently exports meat to nearly 50 countries, including several European Union (EU) countries, as well as New Zealand and Japan.