Brasil Foods SA has signed a joint venture agreement with Hong Kong distributor Dah Chong Hong Holdings Ltd. to expand its distribution of chilled poultry, pork and beef products and grow its presence in the China markets.
The new venture aims to sell more than 140,000 metric tons of food in its first year and 300,000 metric tons in five years, according to Donald Yip, Dah Chong chief executive. China currently contributes to roughly 10 percent of Brasil Foods' revenue.
"Everybody wants to get into the Chinese market, but the point is how to do that," said Brasil Foods Chief Executive Jose Antonio do Prado Fay. "In China, the best way is through a joint venture. We need local support for this kind of operation." According to Fay, the plan is for China to eventually become the Brasil Foods' largest revenue contributor.