Buoyed by the strong, sustained demand for its meat products in China, the United States-based Hormel Foods Corp is looking to further expand investment in the nation, company officials said on Thursday. The Austin, Minnesota-based Hormel formally broke ground for its largest individual facility in China in the Jiaxing Economic and Technological Zone of Zhejiang province on Thursday [23 April 2015]. Set up with registered capital of $110 million, the facility is expected to make annual revenues of 6 billion yuan ($967 million) from 2016 onward…Full Article: ECNS.cn Apr 2015
- Hormel’s Jiaxing facility will have an annual meat processing capacity of 30,000 MTs, which will be expanded to 50,000 MTs annually. The factory will produce bacon, ham, sausages, and Hormel’s famous Spam.
- Hormel Foods first entered the Chinese market in 1994, but did not establish formal operations until 1997.
- In China, pork is king, with the country accounting for approximately 1/2 of global pork consumption (as of 2011). From 2005 to 2010, consumption of pork increased by 8%, but consumption fell from 2007 to 2008 due to an outbreak of blue ear pig disease. Although pork is the most popular meat in China, chicken consumption has increased due to a variety of reasons which include health concerns about pork products, higher incomes, and more frequent dining out by urban Chinese. Despite poultry’s gain, pork consumption will likely remain high due to government support programs, including purchasing pork for reserves and occasionally subsidizing pork purchases for low-income consumers.