The US Department of Agriculture (USDA) terminated a purchase contract worth $240,000 with Chinese-owned Smithfield Foods that had been awarded under the Trump administration’s agricultural trade bailout program, a move taken at the company’s request, a department spokesman said on Friday [16 November 2018]…Full Article: The Global Times Nov 2018
- In October 2018, U.S. Senator Chuck Grassley of Iowa [member of Senate agriculture committee] criticized Smithfield after it the company qualified for President Trump’s USD 12 billion bailout for farmers suffering from the 2018 U.S.-China trade war.
- In August 2018, an outbreak of African swine fever was detected in a slaughterhouse in Zhengzhou, Henan Province. The Zhengzhou slaughterhouse was owned by WH Group (HKG:0288), one of China’s leading pork processors and owner of Smithfield Foods (U.S. pork producer and processor). Roughly 30 pigs out of a group of 260 died from the disease at the Zhengzhou slaughterhouse. The infected pigs were initially procured from Tangyuan County, Jiamusi city, Heilongjiang Province.
- In September 2017, WH Group announced it would acquire the two Romanian meat processors of Elit and Vericom. In Romania, Smithfield Ferme manages 46 farms in the counties of Arad and Timis, eastern Romania. Smithfield also manages two compound feed and four hog breeding facilities in the country. The acquisition of Elit and Vericom will add three meat processing facilities and five distribution centers to its Romanian portfolio.
- In July 2017, Smithfield (subsidiary of WH Group) acquired a 33.5% of stake in Poland’s Pini Polonia (pork processor). In August 2017, Smithfield acquired the remaining 66.5% share.
- In June 2017, Smithfield acquired Poland’s Pini Polska (meat processor), Hamburger Pini (packaged meats producer), and Royal Chicken (poultry processor). During the same month, WH Group noted it would seeking US and European assets in order to compete globally with Tyson Foods Inc and JBS SA.
- In November 2016, Shuanghui (WH Group, HKG:0288) acquired Californian pork producer Clougherty Packing [including Farmer John and Saag’s Specialty Meats] for US$145 million. During the same month, Danish Crown (pork processor) announced plans to build a pork processing factory in Shanghai. At the moment, Danish Crown was a raw material (pork) supplier to China, exporting pork, pig toes, ears and tails.
- 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 August 2016, CDH Investments announced plans to sell a 10.61% stake (~USD 1.19 billion) in WH Group. As a result of the sale, CDH Investments stake in WH Group dropped from 30.39% to 19.77%.
- In September 2013, Shuanghui (WH Group) acquired Smithfield Foods (U.S. pork producer and processor) for HKD 36.7 billion (~USD 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).
- Founded in 1958 and headquartered in Luohe, Henan Province, WH Group (formerly Shuanghui Group – HKG:0288) is a leading Chinese pork processor.
Hong Kong Trends