Perdigao SA : Release - BRF ships pork to China (02.28.12)
02/28/2012| 03:24pm US/Eastern
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CNPJ-MF 01.838.723/0001-27
Public Company
BRF SHIPS PORK TO CHINA
This Thursday (March 1st), BRF is to send the first shipment
of pork to China. The product, frozen boneless pork shoulder,
was processed at the company's unit in Rio Verde (State of
Goias), one of only three Brazilian meat processing plants
authorized to export to China.
The product is to be traded under a joint venture set up
recently by BRF and the Chinese company, Dah Chong Hong
Limited (DCH), for distributing products on the Chinese
market, processing meat at local plants, developing the Sadia
brand and operating on the retail and food service markets in
Continental China, Hong Kong and Macau.
At present, BRF is authorized to export only boneless pork to
China, but the company is working on licensing plants in the
State of Santa Catarina, which is also authorized to ship
boned pork, since the region is considered free of foot-and-
mouth disease and requires no vaccination.
China is the world's biggest producer of pork, but is unable
to satisfy local demand. Access to the Chinese market is a
milestone for both BRF and Brazil, providing a promising
outlook for Brazilian agribusiness.
PARTNERSHIP
BRF and DCH were reported to be discussing a possible
partnership last May. In its first year, the deal is expected
to trade 140 thousand metric tons of product, with revenues
of around US$ 450 million and investments in working
capital.
In the first project phase, BRF is to provide production
capacity, technical support and marketing for the products to
be marketed under the joint venture. DCH will provide the
supply and distribution chain and facilities for processing,
packaging and general support services.
São Paulo, February 28, 2012
Leopoldo Viriato Saboya
Chief Financial Officer and Investor Relations Director
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