US Pork and Beef Businesses Agree to Trade Deals with Chinese Companies

The Department of Commerce announced a slew of trade agreements between US and Chinese businesses in the wake of President Donald Trump’s recent visit to Asia.  Deals totaling $250 billion have been signed between US and Chinese firms during a US-China Business Exchange facilitated by the US Commerce Department, including several US agricultural-related deals.

Key agreement related to the livestock industries that Silver Bullet serves include:

  • Smithfield Food Inc.: Smithfield signed a memorandum of understanding (MOU) with Jingdong Century Trade Company (JD.com) for a total of $1 billion. JD.com agreed to buy $1 billion in US pork from Smithfield Foods, Inc. over a three-year period. Previous to signing these deals, the FAS in Beijing helped JD.com source beef and pork products from the US. In three years, JD.com will purchase a total quantity of 330,000 tonnes from Smithfield. In 2018, JD.com’s new purchases from Smithfield will total $200 million; in 2019, $300 million; and in 2010, $500 million. The main products included in this deal are fresh pork products. In addition, JD.com will invest up to $100 million in a beef packing plant in Montana.

  • Montana Stockgrowers: The Montana Stockgrowers signed an MOU with Jingdong Century Trade Company (JD.com) for a total of $200 million. JD.com agreed to buy $200 million in beef from Montana over a three-year period. Previous to signing this deal, the Foreign Agriculture Service (FAS) in Beijing helped JD.com source beef and pork products from the United States.

Source: Department of Commerce

Leave a reply