Brasil Foods has set up a joint venture in China with local food maker Dah Chong Hong (DCH).
Brasil Foods, Brazil’s biggest food processor, said it established the partnership to gain access to the Chinese distribution market and engage in local processing. The company said it also wants to develop its Sadia brand in China, and reach retail and food service channels in continental China, Hong Kong and Macau.
Brasil Foods announced the two companies were in talks in June when it said it had signed a preliminary “letter of intent” over a potential venture.
In an announcement today (14 February), the firm said it will focus on production, technical support and marketing of products to be sold through the joint venture. Dah Chong Hong will concentrate on supply chain and distribution operations, processing and packaging services.
It is estimated that the joint venture will sell volumes of around 140,000 metric tonnes and have revenues of around US$450m in the first year.
The joint venture covers both natural and processed products, and will focus on the sales, import and procurement of products. Leadership will be shared, with the same number of representatives from both companies on its board of directors and executive committee.

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