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China’s JD.com to import $1.2bn of US beef and pork products

FBR Staff Writer Published 09 November 2017

Chinese e-commerce company JD.com has agreed to buy more than $1.2bn of US beef and pork from The Montana Stock Growers Association (MSGA) and Smithfield Foods, respectively, in the coming three years.

The deals signed by the online retailer are part of its overall commitment to buy $2bn worth US goods over three years across several categories.

JD said that meat products are among its fast growing categories with volume from their direct sales increasing over 780% year-over-year in H1 2017. Imported meat made up over 30% of those sales, stated the retailer.

The company further said that most of the online orders for fresh and frozen meat come from first and second-tier cities. This, it says, leaves a vast potential for increase in online sales from the rest of China.

JD will sell the imported Montana-sourced beef from Cross Four Ranch and MSGA members to millions of its online Chinese customers. The procurement deal is for a period of three years initially, with a minimum of $200m worth beef to be imported to China from Cross Four Ranch and MSGA members.

The company indicated at the rising demand for pork in China to justify its import agreement with Smithfield Foods. Citing official estimates, it said that Chinese imports of pork have more than doubled last year with as many as 1.6 million tons shipped.

JD.com chairman and CEO Richard Liu said: “These groundbreaking agreements bring together two of America’s most trusted and in-demand meat suppliers with China’s leading e-commerce platform, to the benefit of both U.S. producers and Chinese consumers.

“China’s shoppers will rest assured knowing that they are able to purchase safe, high-quality meat products imported from the U.S., with the fast delivery and ironclad assurance of authenticity that they have come to expect from JD.”

Image: JD will import Montana beef from Cross Four Ranch and MSGA members. Photo: courtesy of Montana Stockgrowers Association.