Smithfield Foods China deal gives a good supply of pork to China

Smithfield Foods China deal gives a good supply of pork to China

- in Food

Trade ties between the US and China are likely to get a boost, with the Smithfield Foods China deal on the cards. This will be a major economic boost to both the countries. China is one of the largest pork consumers in the world. It requires large volumes of imported and processed food. Shuanghui International Holdings is the largest meat processing firms in China.  Once the deal is completed, it will receive a continuous supply of pork from Smithfield Foods, the US-based company. The US will benefit from the tremendous exposure to the Chinese market. The Smithfield CEO has stated that the company would get access to the large consumer base in China, once the Smithfield Foods China deal is completed. On the other hand, the Chinese firm would get the much-needed support from the US company, amid growing concerns over food quality in the country. In 2011, Shuanghui International Holdings supplied substandard quality food to the people. After the deal is signed, it would become necessary to keep a vigil on the quality of food entering the market.

The US authorities have stated that the quality of food would not be an issue. The policing tactics of the regulatory bodies in the country are sound, and this prevents any drop in the quality of food. On the other hand, China needs to keep an eye on the food quality. The demand for processed pork in the country is high. Once the deal is signed, this would give a boost to the US firm, with the demand increasing over the years. The US is known for its good-quality processed pork, that comes at competitive rates. This deal is a key booster for the economies of both the countries. While China will get the much-needed supplies of processed pork, US will benefit from the exposure to the large Chinese market.

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