BRF to build a poultry processing plant in China

Brasil Foods, one of Brazil’s largest food processors, will build a new processing facility for pork and poultry in China starting in late 2013, according to a report in the financial newspaper Valor Económico.

The paper quotes António Augusto de Toni, Brasil Foods’ vice president for foreign markets, saying that the project is a partnership between Brasil Foods and Dah Chong Hong (DCH), which is controlled by state-owned Citic Pacific.

António de Toni said that the investment would be made in partnership with China’s Dah Chong Hong (DCH), which is controlled by state company Citic Pacific. With this last company, Brasil Foods has had a partnership since the beginning of the year to operate in the China, Hong Kong and Macau markets.

Brazil Foods joined forces with DCH with the goal of reaching more customers more for its products in the Chinese market. The construction of a factory was in the plans of the partner even before the joint venture was made official.

Details

The details of the Chinese factory, such as its size and production capacity, are still being put together, as is its location, although the company already has an estimate of the investment needed.

António de Toni said that the value would be similar to the US$120 million the company was spending on a factory in Abu Dhabi, in the United Arab Emirates. The plant is expected to be fully operational by 2014.

The partnership is currently selling and distributing Brasil Foods products in China, and Rogério Moraes, responsible for operations in this market, said that the company is already selling Sadia branded product at retailers in big cities such as Shanghai, Beijing and Hong Kong.

In 2011, China accounted for around 3% of Brasil Foods’ exports, and that is expected to increase to 7% by 2015.

Shipments of Brasil Foods generated US$ 446.2 million in September, almost 33% more than the same month of 2011. The company’s sales abroad year to date reached US$3.7 billion, up 4% from the same period last year.