Chinese group Hunan Dakang International Food & Agriculture seeks to expand in Brazil

30 November 2017

Chinese group Hunan Dakang International Food & Agriculture Co Ltd intends to expand its activity in Brazil by entering the meat production business, particularly after having buying controlling stakes in two Brazilian grain and vegetable companies said the group’s chief executive, Ge Junjie.

The group a 57% stake of trading company Fiagril Participações in 2016 and this year has acquired a stake of 53.99% of the share capital of Belagrícola, Comércio e Representações de Produtos Agrícolas, a company specialising in the sale of means of production in the agricultural sector.

With these acquisitions, the group now has the capacity to move 5 million tons of cereals and pulses per year, with the two businesses located in Brazil’s main producing states,  Paraná and Mato Grosso.

Ge Junjie told financial agency Reuters that the first priority is the integration of the two companies in the group’s business, “a process that should take three years (…) after which we are interested in agreements on the production of beef.”

The group will then plans to acquire abattoirs/cold stores already authorised to export meat to China, said the chief executive of Hunan Dakang International Food & Agriculture Co Ltd.

In the Brazilian market, the group intends to increase soy bean sales from 5 million to 10 million tons in the immediate future and to 20 million tons in 2021, in order to export to China, as well as increase the sale of pesticides and other products for farmers. (macauhub)