Chinese meat processing giant to procure supplies from US

Chinese meat processing giant to procure supplies from US

Shuanghui International Holdings will be importing processed meat from Smithfield Foods one of the largest pork processing companies in the US, after the Smithfield Foods China deal is signed. Once the deal is completed, the Chinese firm will be procuring meat from the US company, catering to the high demands of quality food in the country. China has recently faced issues with the quality of foods. The deal will strengthen the economic ties between the two countries and ensure a continuous supply of meat in China.

Experts reveal that health issues remain a concern for China. In 2011, Shuanghui International Holdings had supplied substandard grades of food to the market. Under these conditions, it is necessary for the Chinese regulatory bodies to keep an eye on the quality of food being supplied to the customers by the company. On the other hand, the US company is known for its quality food products. The prices of these supplies are also reasonable. Once the Smithfield Foods China deal is completed, Shuanghui will get an access to good quality supplies at an affordable rate. Presently, China is one of the largest pork producers and consumers in the world. However, keeping the health issues in mind, the move to procure the supplies from US is a good decision. The US regulatory bodies maintain a good vigil on the supplies to the foreign companies. Presently, it supplies packaged foods to a number of brands, including Cook’s, Armour, Farmland and Smithfield.

The processing units of Smithfield will remain operational even after the deal. No changes in the managerial circuit are likely to take place. However, certain officials in the US are unhappy with the deal, as it involves the acquisition of a US giant by a Chinese company. The Smithfield Foods China deal will benefit both the companies and will strengthen the bonds between the US and China.

Categories: Food

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