-
Advertorial
-
FOCUS
-
Guide
-
Lifestyle
-
Tech and Vogue
-
TechandScience
-
CHTF Special
-
Nanshan
-
Futian Today
-
Hit Bravo
-
Special Report
-
Junior Journalist Program
-
World Economy
-
Opinion
-
Diversions
-
Hotels
-
Movies
-
People
-
Person of the week
-
Weekend
-
Photo Highlights
-
Currency Focus
-
Kaleidoscope
-
Tech and Science
-
News Picks
-
Yes Teens
-
Budding Writers
-
Fun
-
Campus
-
Glamour
-
News
-
Digital Paper
-
Food drink
-
Majors_Forum
-
Speak Shenzhen
-
Shopping
-
Business_Markets
-
Restaurants
-
Travel
-
Investment
-
Hotels
-
Yearend Review
-
World
-
Sports
-
Entertainment
-
QINGDAO TODAY
-
In depth
-
Leisure Highlights
-
Markets
-
Business
-
Culture
-
China
-
Shenzhen
-
Important news
在线翻译:
szdaily -> Markets -> 
WH cautious about expanding Smithfield in China
    2017-03-09  08:53    Shenzhen Daily

    CHINA’S WH Group Ltd. will be cautious about expanding Smithfield’s pork processing operations in China due to overcapacity in the world’s biggest pork market, chairman and chief executive officer Wan Long said Tuesday.

    Wan said he expects pork prices to fall to an average of 14 yuan (US$2.03) to 15 yuan per kilogram this year after hitting a record high in 2016.

    “Overcapacity in China is not only in heavy industry, but also the food industry suffers from this problem, so we will expand according to the Chinese market situation,” Wan said.

    “We will see next year and the year after how the Chinese market develops. If it’s fast, we will quickly continue to expand in Wuhan, Guangdong, Xi’an, Shenyang and Shanghai.”

    His comments come four years after WH Group bought U.S.-based Smithfield Food Inc., the world’s biggest pork producer, for almost US$5 billion, in a deal aimed at tapping the massive supplies of U.S. meat for export to China.

    Wan said he expects WH Group’s imports of U.S. pork to China to increase this year from 300,000 tons in 2016.

    As demand growth for meat in China stagnates, WH Group is aiming to grab a bigger share of the lucrative market supplying young urbanites in China, who are willing to spend more on premium products like Western-style processed meats such as bacon and salami.

    Others are following a similar route — top European pork producer Danish Crown is building a new factory to supply fresh meat to consumers in Shanghai.

    Smithfield products made at a purpose-built factory in Zhengzhou sell for about 20-30 percent more in China than local brands, added Wan, while imported pork is currently about half the cost of local material priced around 16 yuan per kilogram. (SD-Agencies)

深圳报业集团版权所有, 未经授权禁止复制; Copyright 2010, All Rights Reserved.
Shenzhen Daily E-mail:szdaily@szszd.com.cn