JBS operates Alibaba for $ 1.5 billion to move to China



JBS has signed a memorandum of understanding with Win Chain, a subsidiary of the Chinese Alibaba Group, to export meat from Brazil to the Asian country over the next three years. An agreement worth 1.5 billion dollars (more than 5.5 billion US dollars) was completed in China's International Import Class (CIIE) in Shanghai. The first shipment should take place within 30 days.

The amount is also important for a JBS-based company that generates more than $ 160 billion a year. Today, the company's business in Brazil accounts for approximately 20% of revenue – JBS USA, which collects transactions in North America, Europe and Oceania, is the biggest contributor. On average, JBS receives more than $ 20 billion a year from meat exports from Brazil, according to market estimates.

In an interview with Value, JBS Carnes, Renato Costa, said that beef must be most demanded from Chinese products. According to the executive body, JBS has already developed cuts and packaging of meat serving e-commerce.

In partnership with Win Chain, the fresh hand of Alibaba, the Brazilian company has already done some "pilot" shipments, Costa said. In China, the distribution logistics of JBS products will be on behalf of Win Chain. "They have a complete logistics platform," he added.

According to Costa, an agreement signed with JBS is part of a $ 200 billion purchase package, signed yesterday by Win Chain with several food companies. In the next four years Alibaba should spend $ 50 billion a year in hands.

At present, JBS has six slaughterhouses of beef in Brazil that can be sold to Chinese. According to the executive director of this unit, they can complete a new contract with Win Chain and also with current buyers in the country. According to him, China is already the biggest target for the export of beef JBS from Brazil.

This year, Costa warned that JBS had invested $ 45 million to expand the capacity of Iturama and Ituiutaba refrigerators in Minas Gerais. These two units are among the plants authorized to export to Chinese. In addition, JBS can also be sold through Lins (SP), Andradina (SP), Mozarlandia (GO) and Barra do Garças (MT).

Between January and September, Brazil exported 227,600 tonnes of beef to China, representing 18% of the total volume traded during the period, according to the Secretariat for Foreign Trade (Secex), prepared by the Ministry of Agriculture. In terms of revenue, Chinese imports to Brazil amounted to $ 1.2 billion.

Among China's International Import Expo (CIIE), one of the largest trade shows in China, JBS ran its position. At the opening of the event, Renato Costa represented the company at a private meeting with Chinese President Xi Jinping. 21 Directors from all over the world attended. The Executive Director was the only South American company.


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