Dah Chong Hong join forces with Brasil Foods S.A.

Tie-up aimed to further develop DCH's food business.

Dah Chong Hong Holdings Limited (DCH) announced the conclusion of a joint venture agreement with the world’s leading poultry exporter, Brasil Foods S.A. (BRF), aiming to enhance her total food supply chain strategy in Hong Kong, Macau, and mainland China (the Region). Through the venture, the Group will establish the branded frozen and chilled food products, develop her local meat processing, and expand the distribution network covering retail and food service channels in the Region.

Under the signed joint venture agreement, DCH and BRF will each hold 50% of the shares of the new company which will be jointly managed by the shareholding partners.

The new venture will represent both shareholders to handle all their business of frozen and chilled poultry, pork, and beef products, including both raw and processed products in mainland China.

Moreover, the joint venture will also focus on building the branded food business to penetrate the food service and retail channels in the Region.

The new company will capitalize on the expertise and strength of the shareholding partners. BRF will provide production, technical and marketing support while DCH will support on the supply chain and distribution operations, processing as well as packaging services. It is estimated that the new venture will sell volumes of more than 140,000 metric tons in the first year, according to a DCH report.

Mr. Donald Yip, Chief Executive Office of DCH said, “We expect that the demand for high quality imported food products and premium grade processed meats will continue to rise in mainland China as the total meat consumption is growing rapidly and more consumers are increasingly concerned about food safety. The strategic partnership with BRF is a win-win proposition for both DCH and BRF. Our combined expertise in production, food distribution and local market knowledge should enable this new venture to successfully capture the growing demand for premium quality frozen and chilled meats in China.”