JBS has just signed a memorandum of understanding (MoU) in Shanghai with the Alibaba Group, the global e-commerce giant, to sell animal protein – beef, pork and poultry – in China. The agreement could be worth up to US$ 1.5 billion over three years – representing the biggest ever deal in this sector between Brazil and China.
The MoU was signed by Renato Costa, CEO of JBS Beef Brazil, and Richard Wang, an executive from Win Chain, a subsidiary of the Alibaba Group which focuses on fresh foods and coordinates the company’s supply chain. The ceremony took place yesterday (6) at the China International Import Expo (CIIE) and was attended by other JBS executives, including Joanita Karoleski, CEO of Seara, and Brent Eastwood, CEO of JBS Australia, as well as Zhang Ye, CEO of Win Chain.
Ad - McGuckin Transport - Quality Grain and Hay Transporters - Ad
Ad - McGuckin Transport - Quality Grain and Hay Transporters - Ad
China is one of JBS’ biggest export destination and with the deal, JBS is expanding its B2C and B2B markets in China, especially for beef. The Company had previously been conducting tests with Alibaba to serve demand for e-commerce packaging and meat cuts and the first products are set to be shipped within 30 days.
“This deal will significantly expand our beef business and build further value for the Friboi brand, which we launched in China during the CIIE. We have developed products based on packaging, cuts and portions specifically designed for the Chinese market”, said Renato Costa. “Our brands are increasingly being recognized for the high quality and safety of the food we produce, with product traceability and a sustainable production process – issues of increasing importance to consumers – and they will be available across a variety of channels for either corporate customers – retail and food service – or end consumers (B2B)”, he explained.
The agreement with Alibaba was signed with the Win Chain platform, which focuses on fresh foods and coordinates the Alibaba supply chain. As a JBS partner, the platform will provide solutions tailored for the Chinese market, such as sales channels, cold chain distribution, support for big data and other services to provide a fully integrated process.
Share Ag News Via