China's Largest Retailer Pens Deal to Purchase U.S. BeefTuesday, November 14, 2017
(North American Meat Institute)
JD.com, China's largest retailer, signed agreements to purchase approximately $1.2 billion of beef from The Montana Stock Growers Association (MSGA) and pork from Smithfield Foods, Inc. over the next three years. The agreements are part of an overall commitment by JD to purchase $2 billion of U.S. goods across a wide range of categories in the next three years. U.S. Commerce Secretary Wilbur Ross and Chinese Vice Premier Wang Yang attended the signing ceremony.
Under the agreement, JD will import Montana-sourced beef from Cross Four Ranch and MSGA members for direct sale to the 258 million Chinese consumers on its e-commerce platform. The procurement agreement stipulates a minimum commitment of $200 million in beef to be imported by JD from Cross Four Ranch and MSGA members at fair market value during the three-year term. JD's purchase of Cross Four Ranch and MSGA beef is estimated to increase Montana beef export sales by as much as 40 percent in 2018.share on facebook share on twitter