BRF, the Brazil-based food group, is to invest in COFCO Meat Holdings when the Chinese business lists in Hong Kong next month.

The companies have agreed a deal that will BRF buy shares in COFCO Meat worth a value of up US$20m. COFCO Meat is expected to list on the Hong Kong Stock Exchange on 1 November.

"COFCO Meat is a rapidly growing pork company in China with a vertically integrated business model operating across the entire industry value chain," BRF said. "This transaction is in line with BRF's strategic plan for globalising the company, accessing local markets, strengthening BRF's brands, distribution and expansion of its product portfolio around the globe."

BRF said COFCO has 47 hog farms, two slaughtering facilities and two processed meat plants in China.

The two businesses have agreed to, on what BRF called "a best endeavours basis" to "actively pursue plans that will enhance the strategic cooperation" between them and the Chinese state-back agri-food giant COFCO. BRF said those plans would include "the exchange of best practices in managing and operating entire industry value chains, of best practices in compliance of Chinese laws and regulations and investigation of opportunities for collaboration".

BRF exports to China but in 2014 the company ended a venture it had had with local player Dah Chong Hong for two years.

At the time, BRF said the venture, set up in 2012, had ended by "mutual agreement".

A spokesperson for BRF's international division said the company still wanted to do business in China and would continue working with DCH in parts of the country. "The company will continue to be a partner with DCH for specific regions in China but we are revising the strategy locally to expand our presence in this market," the spokesperson said. "The company will continue to sell to the Chinese market and believes it has a great potential of which we could not be out of. BRF and DCH will maintain a non-exclusive commercial partnership in the region with a focus in Hong Kong and Macao markets."