US pork producer owned by China’s ‘No. 1 butcher’ eyes new markets amid fears of trade war
But analyst says impact of possible trade war on Smithfield Foods will be limited
Smithfield Foods, the United States’ leading pork producer, which is owned by Hong Kong listed WH Group, is looking to expand into new and current markets amid fears of a trade war between Beijing and Washington. The US is a major business segment for WH Group, the world’s largest pork producer.
“If the tariffs are actually imposed, that will be part of our equation [for deciding] where we sell our pork,” said Ken Sullivan, executive director of WH Group and the chief executive of Smithfield Foods, which was acquired by the former in 2013. “We are finding new markets and we will continue to do so.
“It’s not like we have extra meat, we don’t. We sell every pound of meat that we make, so it’s always about where is now the best market,” he said on the sidelines of a press conference announcing WH Group’s full year results in Hong Kong on Tuesday.
The Chinese company grabbed headlines when it acquired Smithfield for US$4.7 billion in 2013. Its US business contributed 59.3 per cent of its turnover last year, almost doubling the amount of its turnover in China, followed by Europe.
Sullivan said some of Smithfield’s current international export markets, such as Japan and South Korea, recorded strong performances last year, with business in South Korea up by 36 per cent for 2017. Sullivan said he expected the company to expand its business in these markets.
