Denmark-based meat co-op Danish Crown has signed a contract to supply pork to one of China’s largest agri-food enterprises.
Danish Crown said the deal with COFCO Meat Holdings covered volume worth US$100m in 2020.
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The widespread African swine fever outbreak in China has put pressure on domestic supplies of pork.
“We have occasionally traded with COFCO for a number of years. Now our trade has reached a scale that makes COFCO a very important partner for Danish Crown. In fact, the contracts that we have entered into in two rounds in recent months have been of a size that – in terms of value – makes them the largest single sales contracts in Danish Crown’s history,” Lars Albertsen, Danish Crown’s global sales director, said.
In September, Danish Crown opened its first factory in Pinghu, near Shanghai, which supplies retail-packed products, either sold online or in supermarkets that are part of retail giant Alibaba.
In March 2018, Danish Crown snapped up a majority stake in Shanghai Natural Casing Company to boost the co-op’s capacity in casings for sausage and salami production.
