Brazilian meat firm JBS has secured a three-year contract to supply meat to Chinese company Win-Chain.

Win-Chain is a fresh foods subsidiary of e-commerce firm Alibaba.

The deal is estimated to be worth $1.5bn and will see the supply of beef, poultry and pork products. It is considered to be the biggest deal to be signed between Brazil and China in the meat segment.

China is one of the largest export markets for JBS, which expects to begin the supply of meat products to Win-Chain in around 30 days.

The Chinese company will provide cold chain distribution, commodity brand co-establishment plans, big data support and channel sales so that JBS products can efficiently tap the Chinese market.

“We have developed products based on packaging, cuts and portions specifically designed for the Chinese market.”

JBS Brazilian beef division chief executive Renato Costa said: “This deal will significantly expand our beef business and build further value for the Friboi brand.

“We have developed products based on packaging, cuts and portions specifically designed for the Chinese market.”

Last month, JBS announced that it was expanding production capacity at two of its meat plants in Iturama and Ituitaba, with a total investment of $12m due to growing demand from China.

Since 2015, JBS has been exporting beef to China. It currently has four more plants certified to supply to the Chinese market.

This is the second meat supply deal signed by Win-Chain in this week. It also signed  a five-year supply deal with Danish pork producer Danish Crown.

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