WH Group signs MoU with JBS to supply fresh meat in China

Brazilian meat firm JBS has signed a memorandum of understanding (MoU) with the Hong Kong-based meat and food processing company WH Group.

JBS and WH Group have agreed to supply and distribute fresh beef, poultry and pork across the Chinese market.

The shipments will begin in the first quarter of this year.

The companies will offer a portfolio of Friboi and Seara products in the market. Friboi and Seara are the beef and pork / poultry arms of JBS.

Friboi has been in the business for more than four decades.

It offers a wide range of beef products under various brands in different markets. These include its name brand, as well as Maturatta Friboi, Do Chef Friboi, Reserva Friboi, 1953 Friboi and Swift Black.

The two companies estimate that within the first year the business could generate revenue of R$3bn ($717.26m).

Friboi president Renato Costa said: “This agreement reflects the maturity and evolution of our trade relations with China.”

Earlier this month, JBS opened a new manufacturing facility for its Friboi beef business unit to further strengthen its position in the local market.

The plant is located at Brasnorte city in the state of Mato Grosso. It has the capacity to process 500 animals per day.

JBS invested more than R$70m ($17.08m) in the acquisition and construction of the plant. Initially, it has hired around 300 employees to staff the plant. The new manufacturing facility is expected to meet domestic market demand.