Shuanghui takes over US-pork processing giant

Shuanghui takes over US-pork processing giant

Shuanghui International Holdings, one of the largest meat processors in China, have taken over Smithfield, the US-based pork producer. The deal comes as a welcome move to both the nations, as the US company will benefit from the exposure to the Chinese market. China is one of the largest consumers of pork in the world. On the other hand, Shuanghui International Holdings will benefit from the trade, as it will get a continuous supply of pork from the US-based firm. Shuanghui International Holdings, after the Smithfield Foods China deal is completed, will get access to high-quality pork at competitive prices from the US. Experts are of the opinion, that once the merger is approved, other takeovers of US firms by the Chinese is on the cards. Although the move is likely to strengthen trade relationships between the two economies, certain US officials are unhappy with the acquisition of a reputed US company by the Chinese.

However, the US authorities are confident about the quality of food that are going to supply to the Chinese firm. Food quality has not been an issue for the US, and it has got a good regulatory mechanism to check the food quality. On the other hand, China needs to keep a check on the quality of pork coming from the US. In 2011, Shuanghui International Holdings was known to be supplying poor quality meat to the consumers. Presently, the company has got 13 facilities, that produces a large volume of meat every year. It amounts to 2.7 million tons of meat per year. After the agreement is signed, Smithfield’s facilities and locations will not be closed, including its headquarters in south-eastern Virginia, founded in 1936. This is one of the most important economic activities between the two countries, and is likely to strengthen business ties in the coming years between these nations.

Categories: Food

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