Cofco to purchase US$100m in Danish Crown pork in 2020Nov, 06, 2019 Posted by Sylvia Schandert
China’s state-owned agricultural conglomerate Cofco said on Wednesday that it had reached a deal to buy US$100m in pork from Danish producer Danish Crown in 2020 to ease domestic protein shortages following a major African swine fever outbreak in the country.
The two companies signed a preliminary agreement at the China International Import Expo in Shanghai.
Cofco said in a statement that the deal will help it diversify the origins of its imports and the variety of products and make its acquisitions more sustainable.
Lars Albertsen, Danish Crown’s director of sales, said the volumes had not been set, but the sale was “one of the biggest deals we’ve done here in a long, long time.”
He added that the deal could be expanded considering China’s great need.
“There is a shortage of pork, so this is likely to become even bigger,” the executive told Reuters.
Europe’s largest pork exporter, Danish Crown has already done several deals with Cofco this year, making it a preferred supplier, according to Albertsen.
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