JBS signs US$1.5b meat supply deal with Alibaba’s Win-Chain

USA – The American meat processor, JBS has secured a three-year supply deal with Alibaba’s data-driven global sourcing platform for perishable food, Win-Chain to increase its meat export to the Chinese market.

The deal which include beef, poultry and pork products will see JBS start supplying Win-Chain within the next 30 days.

As part of the partnership, Win-Chain will provide channel sales, cold chain distribution, commodity brand co-establishment plans and big data support, ensuring that JBS products can enter the Chinese market in an efficient manner.

China is already one of JBS’ largest export markets, and JBS claims that the deal will significantly strengthen both its B2B and B2C operations in the country.

“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.

“Our brands are increasingly being recognised for the high quality and safety of the food we produce, with product traceability and a sustainable production process, issues of increasing importance to consumers and they will be available across a variety of channels for either corporate customers, retail and food service or end consumers,” said Renato Costa, chief executive of JBS’ Brazilian beef division.

Last month, JBS said it had invested US$12 million to expand production at two of its Brazilian meat production facilities, as it aims to meet increased demand from the Chinese market.

As well as enhancing its Chinese export operations, JBS said the additional output from the expansions will also help it serve its customers in Europe and within the domestic market.

For Win-Chain, this is the second deal after signing a five-year supply deal worth US$342m with Danish Crown which will see the pork producer supply an additional 250 tonnes of Danish pork a week to the Chinese market.

China is one of the main export destinations for Brazilian beef since 2015.

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