Smithfield Foods Inc’s owner, China-based WH Group, is seeking US and European beef and poultry assets to buy, which would sharpen its rivalry with global meat packers Tyson Foods Inc and JBS SA. Expanding into beef and poultry would bring US-based Smithfield, the world’s largest pork producer, more in line with competitors Tyson, JBS and BRF SA, which each process pork, chicken and beef…Full Article: The Global Times June 2017
- In March 2017, after a two year investigation, Brazil’s Federal Police stated that BRF S.A. (formerly Brasil Foods), JBS S.A., and dozens of smaller meatpacking companies violated food safety regulations (i.e. masking rotten meat with chemicals, falsifying expiration dates, injecting water in poultry meat), and bribed food inspectors and export officials. As a result, mainland China temporarily suspended imports while Hong Kong issued a product recall.
- In October 2016, CDH Investments announced plans to reduce its stake in WH Group from 19.77% to 12.94%, and may lower it further to 8.18% at a later date.
- In September 2016, Yum Brands announced it secured investors for its Chinese spinoff. Primavera Capital Group would invest US$410 million while Zhejiang Ant Small & Micro Financial Services Group (Alibaba’s online payment application Alipay) would invest US$50 million.
- In August 2016, CDH Investments announced plans to sell a 10.61% stake (~US1.19 billion) in WH Group. As a result of the sale, CDH Investments stake in WH Group dropped from 30.39% to 19.77%.
- In November 2015, Tyson Foods stated they would seek to market their products via the e-commerce site Yihaodian (see Walmart). Additionally, the company stated it will continue to use third party refrigerated transportation companies when shipping its products within China.
- In October 2015, China announced it would lift a ractopamine-inspired ban on 14 American pork plants. The 14 US pork plants include eight cold storage facilities and six processing plants that do not use the banned (in China) feed additive ractopamine, a leanness enhancing drug. The original ban curtailed import of pork products from by Tyson Foods Inc and Hormel Foods Corp.
- In August 2014, China partially banned US pork imports due to the feed additive ractopamine. The ban covered six US cold storage facilities and six US processing plants including those from Tyson Foods (3 plants), Hormel Foods (1 plant), Triumph Foods (1 plant), and Quality Pork Processors (1 plant).
- In September 2013, Shuanghui (WH Group) acquired Smithfield Foods (U.S. pork producer and processor) for HK$36.7 billion (~US$4.7 billion).
- Founded in 2002 and headquartered in Beijing, CDH Investments is a private equity firm. As of early 2016, CDH Investments had invested in China Modern Dairy (HKG:1117), WH Group (HKG:0288), and China Mengniu Dairy (HKG:2319).
- In 2001, Tyson Foods entered the Chinese market. The company, as of 2015, has three factories located in Nantong (near Shanghai), Rizhao (Shandong province), and Zhucheng (Shandong province).
- Founded in 1958 and headquartered in Luohe, Henan Province, WH Group (formerly Shuanghui Group – HKG:0288) is a leading Chinese pork processor.
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