Brazilian meatpacker Marfrig Alimentos S/A announced the creation of two joint ventures in order to explore opportunities to supply food products and meet the growing demand for distribution in the Chinese market.
Marfrig said it will invest a total of $309 million in order to form the two joint ventures, through its international arm called Keystone Foods. The first joint venture will be created jointly with China's Cofco. Marfrig's Keystone will hold a 45% stake in the venture, and 55% will be held by Cofco. The joint venture would combine the local market knowledge of Cofco with the experience of Marfrig and Keystone Foods in food distribution and the development of international clients to create a leading multi-temperature logistics company in China.
Keystone Foods China and Cofco have been developing a partnership since 1990, Marfrig said. The total investment in the joint venture is estimated at $252 million. In the meantime, the company will invest $57 million to form a joint venture with Chinwhiz. The joint venture (60% Keystone, 40% Chinwhiz) had been created with the objective of implementing a vertical integration in poultry operations in China and meeting the needs of its principal client for processed food, high quality and competitive costs, the company said. With these investments, Marfrig will improve its strategic positioned in the Chinese meat market and aims to meet the growing demand for food in China, with operations that range from processing to distribution to clients.
Source: Marfrig Alimentos S/A