Smithfield Foods, the largest pork processing company in the US, is being taken over by Shuanghui International Holdings, its Chinese counterpart. This is likely to give a boost to the trade relations between both the nations. Once the Smithfield Foods China deal is completed, the US-based firm will get an extensive exposure to the Chinese market. This is a good news for Smithfield, as it will increase the customer base to a great extent. China is one of the largest pork consumers of the world. The demand for quality food in the country is on the rise. Once the deal is signed, it will be able to export large volumes of meat to China.
One of the greatest benefits of China from the deal is the availability of quality food supplies from the US. Smithfield Foods is reputed for the quality of food. Besides, the prices of food products are competitive, which makes it easy for the Chinese firm to procure pork from the company. China has faced health issues in recent years, particularly after Shuanghui supplied poor quality meat to the market back in 2011. It is necessary to keep an eye on the quality of food coming from the US. However, the US authorities are confident that they will be providing quality food to the Chinese firm, as the regulatory mechanism in the country is strong. After the Smithfield Foods China deal, it will be supplying large volumes of processed meat to China. Presently, the company supplies food products to a number of reputed brands. These include Cook’s, Armour, Farmland and Smithfield.
The US and China are two of the largest economies in the world. The trade tie is likely to benefit both, as the US company is keen on expanding its market. Shuanghui International Holdings, on the other hand, needs to cate to the growing needs of processed meat in China.